How to Calculate Net Rental Yield in Dubai (Step-by-Step 2026)

A gross rental yield is one division: annual rent over purchase price. A net rental yield is six adjustments. Most "8% yield" claims you see in Dubai listings collapse to 4–5% net once you do the math properly. This is the step-by-step method for computing net rental yield on a Dubai property — every input, every adjustment, common errors, and a worked example.

Gross vs net: the definitions

Gross rental yield = annual rent ÷ purchase price. It ignores every holding cost. Useful for a fast comparison; useless for actual return modelling.

Net rental yield = (annual rent − service charge − vacancy − maintenance reserve − management fee − insurance) ÷ (purchase price + transaction costs). It models what actually arrives in your bank account. This is the only rate that matters for an investor.

The inputs you need

Purchase price — the contracted sale price. Not the asking price.
Transaction costs — 6–8% on top of price (DLD 4%, agency 2% + VAT, NOC, title deed, trustee). See the full transaction cost breakdown.
Achievable annual rent — not the asking rent on Bayut. The rent the same building actually achieved in the last 12 months. Use Ejari history when available.
Service charge per sqft per year — varies AED 12–22/sqft across Dubai. Pull from RERA Mollak filings for the specific building, not generic estimates.
Vacancy assumption — 5–8% for prime corporate-let areas (Marina, Downtown), 8–12% for value areas (JVC, International City).
Maintenance reserve — 8–12% of gross rent. Older buildings drift higher.
Management fee — 5–8% of gross rent if outsourced, zero if self-managed.
Insurance — typically AED 800–2,500/year for a residential apartment policy.

Worked example: Dubai Marina 1BR at AED 1.8M

Inputs:

Purchase price: AED 1,800,000
Transaction costs at 6.5%: AED 117,000
All-in cost basis: AED 1,917,000
Achievable annual rent: AED 105,000
Unit area: 800 sqft, service charge AED 18/sqft = AED 14,400/year
Vacancy 7%: AED 7,350
Maintenance reserve 10%: AED 10,500
Management 6% (outsourced): AED 6,300
Insurance: AED 1,200

Calculation:

Gross rent: AED 105,000
Less service charge: AED 14,400 → 90,600
Less vacancy: AED 7,350 → 83,250
Less maintenance: AED 10,500 → 72,750
Less management: AED 6,300 → 66,450
Less insurance: AED 1,200 → AED 65,250 net

Gross yield = 105,000 ÷ 1,800,000 = 5.83%. Net yield (on price) = 65,250 ÷ 1,800,000 = 3.63%. Net yield (on all-in cost basis) = 65,250 ÷ 1,917,000 = 3.40%.

The 5.83% gross headline shrinks to a 3.40% net once you include real costs. That's the typical Dubai Marina reality.

Common errors

Using listed asking rent instead of achieved rent — listings on Bayut often quote 5–15% above achievable.
Forgetting service charge altogether — the single biggest yield-killer in Dubai. A building charging AED 22/sqft on a 1,500 sqft 2BR drops 80–100 bps from net yield.
Zero vacancy assumption — even prime Marina runs 5–8% vacancy in practice.
No maintenance reserve — over a 10-year hold, a 1BR will need AED 30–50k of work. Reserve for it.
Using price-only denominator — net yield on all-in cost basis (price + transaction costs) is the honest figure. The price-only version overstates by ~6–8%.
Confusing net yield with cash-on-cash — net yield is unlevered. Once you finance with a mortgage, cash-on-cash on equity is a different metric — see the ROI calculator walkthrough.

Net yield benchmarks by area

Typical 2026 net yields on Dubai apartments (all-in cost basis):

Value tier (International City, Discovery Gardens, JVC): 5.0–6.0%
Mid tier (JLT, Al Furjan, Business Bay): 4.0–5.0%
Prime tier (Marina, JBR, Downtown, Palm): 3.0–4.0%

Full ranking by area is in the net-yield-by-area guide.

Practical next steps

Pull achieved-rent comps from Ejari history or REMAP's rental comps before underwriting any deal.
Use the specific building's actual service charge from RERA Mollak filings.
Apply realistic vacancy by area — not zero.
Run the math on REMAP's rental yield calculator with these inputs.
For institutional underwriting, layer this onto the framework in our IRR/cap rate/DSCR guide.