What is the formula for gross rental yield in Dubai?

Gross rental yield = (Annual rental income ÷ Purchase price) × 100. Example: AED 60,000 annual rent on a AED 800,000 apartment = 7.5% gross yield. Use Ejari-registered or RERA transacted rents — not Property Finder listing prices, which typically run 5–10% higher than achieved rents.

What is the formula for net rental yield in Dubai?

Net rental yield = (Annual rent − Service charges − Management fees − Vacancy allowance − Maintenance − Licensing costs if STR) ÷ Total acquisition cost × 100. Total acquisition cost should include purchase price plus DLD 4% and closing fees if you want yield on capital actually deployed.

What costs reduce gross yield to net yield in Dubai?

The main deductions are: service charges (often AED 12–25/sqft/year in mid-market towers), property management (5–8% of rent for long-term lets), vacancy (realistically 4–8% of potential rent), maintenance provisions (AED 3,000–8,000/year on apartments), Ejari registration, and for short-term lets — DET permit fees, Tourism Dirham, and higher management percentages.

Should I use purchase price or total acquisition cost for yield?

Both are valid — but label them clearly. Brokers quote yield on purchase price only. Conservative investors use total acquisition cost (price + 4% DLD + trustee + broker on secondary purchases) because that reflects cash actually invested. The difference is often 0.3–0.5 percentage points on net yield.

Where do I find actual rental data for Dubai yield calculations?

Use RERA Ejari transacted data via the Dubai REST app, RERA Rental Index publications, and sold-rent comparables from licensed agents with Ejari history. Avoid calculating yield from Bayut or Property Finder advertised rents without discounting to transacted levels.

What vacancy rate should I use in Dubai yield calculations?

For well-located long-term rentals in established communities, use 4–5% vacancy (roughly 2–3 weeks between tenancies). For citywide mid-market averages, 7–8% is more honest. Supply-heavy micro-locations or poor pricing can push effective vacancy to 10–12%.

How much difference is there between gross and net yield in Dubai?

Typically 1.5–3 percentage points for long-term lets in mid-market towers with moderate service charges. Premium buildings with AED 25–35/sqft service charges can see 3–4 point gaps. A marketed 8% gross often becomes 5.5–6.5% net — sometimes lower on total acquisition cost.

Can I use this same method for Abu Dhabi or other emirates?

Yes — the formula is identical. Change the inputs: Abu Dhabi service charges, DMT registration costs instead of DLD-only modelling, and local tenancy data sources. Dubai has the deepest published rental data; other emirates may require more agent-sourced comparables.

How to Calculate Rental Yield in Dubai: Formula, Worked

Every Dubai listing shows a yield percentage. Almost none shows how it was calculated — or what is left after service charges, vacancy, and management. This guide gives you the formulas, a full worked example on a realistic AED 850,000 JVC studio, and the data sources that separate marketing math from planning math.

Quick answer: Gross yield = rent ÷ price. Net yield = (rent minus all operating costs) ÷ total capital deployed. For long-term lets in mid-market Dubai, expect 1.5–3 percentage points between gross and net. Use Ejari transacted rents, not portal listings. For the conceptual deep-dive on why marketing misleads, see Gross vs Net Rental Yield in Dubai.

Step	Action
1	Get Ejari-based annual rent
2	Confirm purchase price or total cost
3	Pull building service charge (Mollak/REST)
4	Add management, vacancy, maintenance
5	Calculate gross and net
6	Stress-test charges +20%

Gross yield: the starting formula

Formula:

Gross yield (%) = (Annual rental income ÷ Purchase price) × 100

Example (simple):

Purchase price: AED 800,000
Annual rent: AED 60,000
Gross yield = (60,000 ÷ 800,000) × 100 = 7.5%

Gross yield is useful for comparing two properties on the same basis — same rent data source, same price basis. It is not useful as your final investment decision number.

Brokers and developers quote gross because it is higher and requires no building-specific research.

Net yield: the formula that matches your bank account

Formula (long-term let):

Net yield (%) = (Annual rent − Operating costs) ÷ Total acquisition cost × 100

Operating costs include:

Cost bucket	How to estimate
Service charges	AED/sqft × unit size (from Mollak via Dubai REST)
Property management	5–8% of collected rent (if outsourced)
Vacancy	% of gross rent (see assumptions below)
Maintenance	Flat annual provision
Ejari / admin	AED 220 per tenancy + landlord incidentals
STR licensing	Only if short-term — DET permit, Tourism Dirham

Total acquisition cost (recommended conservative basis):

Total cost = Purchase price + DLD 4% + Trustee fee + Buyer broker commission (if any)

On AED 800,000 cash resale purchase, total cost often lands near AED 848,000–860,000 — and net yield on that base is lower than on price alone.

For fee detail, see Cost of Buying Property in Dubai. For community-level yield ranges, see Dubai Rental Yield Guide.

Data inputs: where the numbers come from

Annual rent — use Ejari, not listings

Wrong: Property Finder advertised rent AED 65,000
Right: Ejari-registered comparable at AED 58,000–60,000

Listed rents run 5–10% above transacted rents in many communities. RERA’s Rental Index also caps legal increase percentages on renewal — your long-term income trajectory follows Ejari reality.

Sources:

Dubai REST app — building and area transaction history
RERA Rental Index — published ceilings
Licensed broker — three same-layout comparables with Ejari refs
Seller disclosure — current tenancy contract on resale

Service charges — building-specific

Average “AED 15/sqft” citywide assumptions destroy accuracy.

Pull the Mollak schedule for the specific building via Dubai REST or RERA portal. Premium towers run AED 22–35/sqft; JVC mid-rise often AED 14–20/sqft.

Vacancy — be honest

Scenario	Vacancy assumption	Calendar equivalent
Prime long-term (Marina, Downtown)	4–5%	~2–3 weeks/year
Citywide mid-market average	7–8%	~4 weeks/year
Oversupplied micro-location	10–12%	5–6 weeks/year
Short-term rental	Seasonal — model annually	Summer softening

Dubai citywide baseline in market models is often 7–8% — using zero vacancy is how brochures show 9% net.

Worked example: AED 850,000 JVC studio (long-term let)

This example uses realistic mid-market inputs — adjust every line for your target building.

Property assumptions

Input	Value
Community	Jumeirah Village Circle
Unit type	Studio, 420 sqft
Purchase price	AED 850,000
DLD transfer (4%)	AED 34,000
Trustee fee	AED 4,000
Broker commission (2%)	AED 17,000
Total acquisition cost	AED 905,000

Income and costs (annual)

Line item	Calculation	AED
Annual rent (Ejari-based)	Market comparable	62,000
Service charges	420 sqft × AED 17/sqft	7,140
Management fee	6% × 62,000	3,720
Vacancy allowance	7% × 62,000	4,340
Maintenance provision	Flat estimate	3,500
Ejari / minor landlord costs	Amortised	500
Total operating costs		19,200
Net rental income	62,000 − 19,200	42,800

Yield results

Metric	Formula	Result
Gross yield (on price)	62,000 ÷ 850,000	7.29%
Gross yield (on total cost)	62,000 ÷ 905,000	6.85%
Net yield (on price)	42,800 ÷ 850,000	5.04%
Net yield (on total cost)	42,800 ÷ 905,000	4.73%

Interpretation: Marketing rounds the gross figure to “7.3%” or “7.5%.” Your planning number on capital actually deployed is closer to 4.7% net — still competitive tax-free versus many European markets, but not the headline.

Stress test: If service charges come in at AED 20/sqft instead of 17:

New service charges: AED 8,400 (+AED 1,260)
Net income: AED 41,540
Net yield on total cost: 4.59%

That 0.14-point move is why building-specific charge data matters.

Worked example 2: short-term rental overlay (optional)

Same AED 850,000 JVC studio — if building permits DET Holiday Homes and you operate professionally.

Line item	AED	Notes
Gross STR revenue (annualised)	82,000	Not peak month × 12
DET permit	1,520	Annual
Tourism Dirham + municipality	~6,500	Revenue-dependent
STR management (18%)	14,760
Cleaning / turnover	8,000
Service charges	7,140	Same as LTR
Vacancy / off-season	5,000
Net STR income	~39,080
Net yield on total cost		~4.32%

In this illustrative case, STR gross uplift does not automatically beat LTR net — unless revenue assumptions are conservative and building STR rules are confirmed. Many investors choose LTR for operational simplicity.

See Gross vs Net Yield Dubai for STR vs LTR comparison tables.

Spreadsheet structure: build your own calculator

Row	Field	Source
A1	Purchase price	MOU / SPA
A2	DLD 4%	=A1*0.04
A3	Trustee + misc	Fixed AED
A4	Broker 2%	If buyer-paid
A5	Total acquisition cost	Sum
B1	Annual rent	Ejari comps
B2	Service charges	sqft × rate
B3	Management %	5–8% LTR
B4	Vacancy %	5–8% default
B5	Maintenance	Flat
B6	STR costs	If applicable
B7	Net income	B1 − sum(B2:B6)
C1	Gross yield	B1/A1
C2	Net yield (cost)	B7/A5

Save sensitivity tabs: rent −10%, charges +20%, vacancy +3 points.

Common calculation mistakes

Mistake	Effect	Fix
Using listing rents	Overstates yield 0.5–1.5 pts	Ejari comparables
Ignoring DLD in denominator	Overstates yield ~0.3–0.5 pts	Total acquisition cost
Zero vacancy assumption	Fantasy net yield	7% citywide default
Citywide average service charge	Wrong building = 1–2 pt error	Mollak per building
Peak STR month annualised	Overstates STR case	12-month average
Guaranteed ROI in purchase price	Yield mirage	Model post-guarantee year
Off-plan rent on unbuilt unit	Speculative	Use completed comparables

For buyer behaviour errors beyond math, see Mistakes Foreign Buyers Make in Dubai Property.

Gross vs net: when to use which

Use gross yield when…	Use net yield when…
Quick screening across 10 listings	Making a purchase decision
Same-day broker comparisons	Building a 5-year cash-flow model
Explaining market to a partner	Comparing Dubai vs UK net-of-tax
Writing internal investment memos	Answering “what hits my account?”

The Gross vs Net Rental Yield in Dubai guide explains why the gap exists — service charge physics, vacancy behaviour, and STR cost layers. This guide shows how to compute it on your deal.

Area context: where the inputs differ

Yield inputs vary more by building than by emirate marketing.

Community	Typical gross (studios/1BR)	Service charge sensitivity
JVC	7–9%	Moderate
Sports City	7.5–9%	Moderate-low
Business Bay	6–7.5%	Moderate-high
Dubai Marina	5.5–7%	High
Downtown	5–6.5%	Very high
Meraas (City Walk)	5.5–7%	Premium

See Highest Rental Yield Areas Dubai for ranked communities.

Tax and home-country overlay

UAE rental income is not subject to UAE personal income tax for individuals — but UK, US, EU, and Australian nationals may owe home-country tax on worldwide income.

Net yield in Dubai is step one. After-tax yield in your tax residence is step two — particularly relevant for UK buyers post-2025 non-dom changes cited in market commentary.

Off-plan: calculating projected yield before handover

You will not have Ejari on the exact unit. Use:

Completed building in same project phase
Adjacent building same developer, same layout
Community average from REST — discounted 5% for conservatism

Also model:

Months to handover without rent
Service charge deposit at handover
Snagging and fit-out costs
DLD/Oqood already in acquisition cost

Off-plan yield is a forecast — label it accordingly.

Checklist before you trust a yield number

Rent sourced from Ejari comparables (3 minimum)
Service charge from Mollak for exact building
Vacancy at least 7% unless proven lower
Management included if you will not self-manage
Maintenance line included
Total acquisition cost in net denominator
STR costs included if STR thesis
Stress test +20% service charges
Compared to gross-vs-net-yield-dubai expectations

Summary

Calculating rental yield in Dubai is arithmetic — sourcing inputs is the skill. Gross yield gets you to a shortlist. Net yield on total acquisition cost with Ejari rents and building-specific service charges gets you to a decision.

The AED 850,000 JVC example shows how 7.3% gross becomes ~4.7% net on deployed capital — still viable for many investors, but only if you planned for 4.7%, not 7.3%.

Multi-year cash-flow: beyond Year 1 yield

Single-year net yield is necessary but not sufficient. Foreign investors should model 5-year cash flow including:

Year	Variable
1	Furnishing, snagging, initial void
2–3	RERA rent increase caps on renewal
3–5	Service charge inflation (often 3–5% annually)
Any	Special levies, AC replacement, appliance cycles

RERA Decree 43/2013 rent calculator sets renewal increase ceilings based on current rent vs market index — your income growth is regulated, not market-free.

Worked example 3: Business Bay one-bedroom (premium charges)

Input	Value
Purchase price	AED 1,200,000
Total acquisition cost	~AED 1,278,000
Annual rent (Ejari)	AED 78,000 (6.5% gross on price)
Service charges	AED 19,200 (750 sqft × AED 25.6/sqft)
Management 6%	AED 4,680
Vacancy 5%	AED 3,900
Maintenance	AED 5,000
Net income	~AED 45,220
Net yield on cost	~3.54%

Premium location does not automatically mean premium net yield. This is why Gross vs Net Yield Dubai stresses building-specific charge pulls.

Calculator mistakes by buyer nationality (patterns)

Origin market	Common error	Dubai reality
UK	Compare to net-of-tax buy-to-let	UAE rent tax-free locally; UK tax may still apply
India	Ignore DEWA landlord deposits	Budget between-tenant utility gaps
Russia/CIS	FX only at purchase	Model repatriation currency
Germany	Skip service charge line	Strata-like fees are mandatory
Pakistan	Trust broker gross yield	Ejari verification essential

Using yield to compare Dubai vs Abu Dhabi stock

Same formulas apply — change inputs:

Input	Dubai	Abu Dhabi (e.g. Aldar)
Registration cost	DLD 4%	DMT schedule
Rent data	Ejari / REST	DMT/agent comparables
Yield band	5–9% gross mid-market	6–7% gross often cited
Liquidity	Highest	Moderate

See Aldar Properties Review for Abu Dhabi developer context.

Quick reference card

GROSS  = Rent ÷ Price × 100
NET    = (Rent − OpEx) ÷ Total Cost × 100
OpEx   = Service + Mgmt + Void + Maint + STR costs
Rent   = Ejari transacted (not listing)
Charge = Mollak building-specific

Pin this before any sales gallery visit.

Disclaimer: Rent levels, service charges, and regulations change. Verify inputs on Dubai REST and with licensed professionals. Figures are illustrative — not guarantees of future performance.