Net yield calculator
Net yield deducts vacancy, service charges, management and other costs, and is measured against the total cost including purchase costs. Rent growth and capital appreciation are not included.
Gross rental yield by area (2026)
| Area | Gross yield (2026) | Profile |
|---|---|---|
| Jumeirah Village Circle (JVC) | 7–8.5% | Yield-focused investment |
| Arjan | 7–8% | Balance of lifestyle and investment |
| Business Bay | 6–7.5% | Central location and residence living |
| Dubai Marina | 5.5–7% | Lifestyle and liquidity |
| Downtown Dubai | 5–6.5% | Prestige and capital preservation |
| Dubai Hills Estate | 5–6% | Family living and long-term value |
Ranges are 2026 market estimates (Bayut, Property Finder and brokerage reports) and vary with building, floor, furnishing and letting model.
Gross versus net yield
Gross yield is annual rent divided by the purchase price. Net yield deducts vacancy, service charges, management fees, maintenance and insurance, and is measured against the total cost including purchase costs.
In the calculator example, a one-bedroom bought for AED 1.1M and let for AED 80,000 a year has a gross yield of about 7.3%, falling to about 5.2% net after costs. Always base decisions on the net figure.
Long-term or short-term (holiday home) letting?
| Criterion | Long term | Short term (holiday home) |
|---|---|---|
| Income | Lower but stable | Higher potential with seasonal swings |
| Contract | Usually one year, registered with Ejari | Nightly or weekly stays |
| Permit | No special permit | DET holiday-home permit and insurance required |
| Management cost | Low | Operator commission, often 15–25% |
| Furnishing and upkeep | Optional | Fully furnished, regular maintenance essential |
Rent increases and the RERA rental index
For lease renewals with existing tenants, rent increases in Dubai are capped by RERA’s rental index. An increase is allowed only if the current rent is sufficiently below the area’s market average, and the tenant must be notified at least 90 days before renewal.
Ways to improve your return
- Choose buildings with reasonable service charges and strong tenant demand
- Prepare furnishing and equipment that suit the target tenant
- Shorten vacancy with professional photos and the right price
- Work with a reliable manager for maintenance and tenant relations
Frequently asked questions
Is my Dubai rental income taxed?
The UAE does not levy personal income tax on individuals’ rental income. If you are tax resident in Türkiye, however, foreign rental income may need to be declared there; please consult your tax adviser.
Can I let my home short term (Airbnb-style)?
Yes, but you need a holiday-home permit from Dubai’s Department of Economy and Tourism (DET), insurance and compliance with building rules. Most investors use a licensed operator.
How is rent paid?
For long-term lets, the annual rent is usually paid by several cheques or bank transfer. For short-term lets, the operator pays income into your account at regular intervals.
Who manages the property while I am abroad?
Licensed property managers handle tenant search, contracts (Ejari), rent collection and maintenance, usually for a small percentage of the annual rent. We help you choose a suitable firm.
Sources
- Bayut and Property Finder — 2026 rental reports
- Dubai Land Department — RERA rental index