The yield you were sold is usually the gross yield: rent divided by price. The yield you actually live on comes after service charges, empty months and upkeep. Here is how to work out the real number before you buy, and why the same rent can mean very different returns in two buildings.
By Umer Shauket, Founder & CEO, Cresco Real Estate. RERA ORN 34288. Published 8 November 2026.
The short answer
- Gross yield ignores costs. Net yield is what reaches your account.
- Service charges are set by building, approved by RERA and paid by the owner unless the lease says otherwise.
- You can check any project’s charges on the Dubai Land Department’s Service Charge Index before you buy.
- In our example, a 6.67% gross yield falls to between 4.03% and 5.83% once charges and one empty month are counted.
Why the brochure yield is not your yield
Across Dubai, Cavendish Maxwell put the average gross yield at 6.6% for apartments and 4.9% for villas in its Q3 2026 data (Khaleej Times). Those are gross figures. They do not take off the costs an owner pays every year, and the biggest of those is usually the service charge.
What service charges are and who sets them
Service charges pay for the shared parts of a building or community: maintenance, security, cleaning, common area utilities and the reserve fund. Under Law No. 6 of 2019 on jointly owned property, the owner pays them unless the lease says otherwise (Article 16). The Dubai Land Department says invoices approved by RERA are the reference in any dispute, that the owner stays liable even if a tenant does not pay, and that unpaid charges can lead to the unit being sold.
Because charges are set building by building, two apartments with the same rent can produce very different returns. The Service Charge Index and the Dubai REST app let you look up a project’s charges by usage and budget year.
What this means for a buyer
Imagine a 1,000 sq ft apartment bought for AED 1,200,000 that rents for AED 80,000 a year. That is a gross yield of 6.67%. These are round numbers to show the method, not a forecast. The table shows what happens at different service charges, with and without one empty month between tenants.
| Service charge per sq ft a year | Yearly charge | Net yield, fully let | Net yield, one empty month |
|---|---|---|---|
| AED 10 | AED 10,000 | 5.83% | 5.28% |
| AED 15 | AED 15,000 | 5.42% | 4.86% |
| AED 20 | AED 20,000 | 5.00% | 4.44% |
| AED 25 | AED 25,000 | 4.58% | 4.03% |
The same apartment can return anything from about 4% to 5.8% depending on the building’s charges and how quickly it relets. Before maintenance, insurance or agency fees.
Compare buildings on net, not gross. A unit with a slightly lower rent in a building with low charges can beat a higher rent in a building with high charges.
Look at the history, not just this year. The Service Charge Index lets you pick the budget year. A charge that has risen every year is a cost that will likely keep growing.
Ask for the reserve fund position. A thin reserve can mean a special levy later when lifts, facades or cooling systems need major work.
Read the lease. The law lets a lease shift charges to the tenant. Check which applies before you set your rent.
A five minute check before you buy
- Look up the project on the Service Charge Index for the current and two earlier budget years.
- Multiply the per sq ft rate by the unit’s size.
- Take that, plus one month’s rent for vacancy, off the yearly rent.
- Divide by the price including the 4% Dubai Land Department fee.
- Compare that net figure, not the brochure figure, with your other options.
See our purchase cost guide for the full list of buying costs.
The honest limits
Our example uses round numbers to show the method. Real charges vary widely between buildings and change each year. Cooling and master community fees may come on separate bills, so ask for every recurring charge. Always use the official figure for the exact project.
Frequently asked questions
Who pays service charges in Dubai, the owner or the tenant?
The owner. Under Article 16 of Law No. 6 of 2019, the owner pays service and usage charges unless the lease says otherwise, and the Dubai Land Department says the owner stays liable even if a tenant fails to pay.
How do I check a building’s service charge before I buy?
Use the Dubai Land Department’s Service Charge Index, on its website or in the Dubai REST app. It shows the charges for a project by usage and budget year, so you can see this year and earlier years.
What happens if service charges are not paid?
The Dubai Land Department says accumulated unpaid charges can lead to the unit being sold to settle the debt. Disputes over these charges go to the Rental Disputes Center.
Sources: Dubai Law No. 6 of 2019 on jointly owned property; Dubai Land Department, owners’ obligation to pay service charges; Dubai Land Department, Service Charge Index; Dubai Land Department, Dubai REST; Khaleej Times, Cavendish Maxwell Q3 2026. General information, not investment advice.