Net vs gross rental yield
Why the yield in an advert is not what you earn, and how service charges change the ranking of areas.
Figures updated with data through 22 October 2026.
General information, not legal advice. For a decision about your own case, check the official sources or speak to a lawyer.
Source: DLD open data · Information, not financial advice. Not an official DLD product.
Gross yield is the rent divided by the price. It is the number in most adverts and most yield tables. Net yield is what is left after the costs of owning and buying. In Dubai the gap is large, because service charges vary from building to building and buying costs add about 6% up front. Across Dubai today the median gross yield is 6.01% and the median estimated net yield is 4.60%.
The two formulas
- Gross yield = annual rent ÷ price.
- Net yield (ZoneIQ) = (annual rent − service charge − 5% of rent for vacancy and management) ÷ (price × 1.06).
The 6% covers the 4% DLD fee and a 2% agency fee. Mortgage interest is left out, because it depends on you, not on the area. Deal Check adds it.
A worked example
1-bedroom homes in Jumeirah Village Circle are the most traded unit type in Dubai: 6,297 sales in 12 months.
| Median rent a year | AED 70,000 |
|---|---|
| Median ready price | AED 1.00M |
| Gross yield | 7.00% |
| Service charge (AED 17.48 × 782 sqft) | −AED 13,669 |
| Vacancy and management (5% of rent) | −AED 3,500 |
| Buying costs (DLD 4% + agency 2%) | +AED 60,000 |
| Net yield | 4.98% |
Service charges move the answer most
The same home, rent and price, with four service charge rates. Rates in Dubai run from under AED 10 to over AED 30 per sqft a year, so always ask for the building's Mollak invoice.
| Service charge (AED / sqft / yr) | Service charge / yr | Net yield |
|---|---|---|
| AED 10.00 | AED 7,820 | 5.54% |
| AED 15.00 | AED 11,730 | 5.17% |
| AED 20.00 | AED 15,640 | 4.80% |
| AED 25.00 | AED 19,550 | 4.43% |
Gross rankings can mislead
Rank the 71 areas with enough data by gross yield, then by net yield, and some areas move a long way. These climb most once costs are counted:
| Area | Rank by gross | Rank by net | Gross | Net yield |
|---|---|---|---|---|
| Bluewaters Island | 58 | 13 | 5.09% | 5.30% |
| Rukan | 20 | 6 | 7.14% | 5.68% |
| Jumeirah Golf Estates | 22 | 11 | 7.10% | 5.31% |
| Dubai Water Canal | 60 | 50 | 5.07% | 4.18% |
| Sobha Hartland | 40 | 31 | 5.96% | 4.77% |
| Area | Rank by gross | Rank by net | Gross | Net yield |
|---|---|---|---|---|
| Madinat Badr | 39 | 55 | 6.01% | 4.07% |
| Damac Hills | 24 | 37 | 6.86% | 4.59% |
| Dubai South Residential District | 32 | 45 | 6.25% | 4.27% |
| 800 Villas | 57 | 68 | 5.10% | 3.11% |
| International City Phase 1 | 5 | 16 | 8.21% | 5.25% |
What net yield still leaves out
- Mortgage interest, and the cash flow after your payment.
- Furnishing, and holiday-home licences and fees if you let short term.
- Tax on rent in your home country.
- Price change. Yield is income only. A high yield in an area with falling prices can still lose money.