Investment & ROI · 10 min · 2026-03-18
Dubai Rental Yield: How to Calculate ROI on Your Property
The formulas, the costs to include and the official sources to use when calculating the rental yield and ROI of a Dubai property.
How to Calculate Rental Yield in Dubai
Rental yield is a core metric for property investors. It measures the annual return on your investment based on rental income relative to the property's purchase price.
The Formula
For example (hypothetical figures, for illustration only), a property purchased at AED 1,000,000 generating AED 75,000/year in rent would have a 7.5% gross yield.
Net Rental Yield
Net yield accounts for expenses:
Annual expenses to include:
- Service charges: set per building; check the building budget and the RERA service charge index
- Utilities and deposits: if you, rather than the tenant, pay them
- Maintenance: keep a yearly allowance for repairs and replacements
- Insurance: building contents and landlord cover
- Management fee: agreed with your property manager, usually a share of the rent
Total acquisition cost includes the 4% DLD registration fee and the other purchase costs in our complete cost guide.
Where to Find Current Rents
Rents vary by area, building, unit size, view and season. Before entering a figure:
- Check the DLD Rental Index and registered contracts on the Dubai REST app
- Compare several similar units in the same building, not the area average
- Allow for vacancy between tenants and for the time needed to furnish or fit out
Test Several Scenarios
Run a low, a central and a high rent assumption. A deal that still works with the low case is more robust than one that depends on the high case. If you consider holiday letting, see our short-term rental guide for the permit and cost points.
Tax
The UAE does not levy personal income tax on individuals; check the UAE government portal and ask a tax adviser how your home country treats foreign rental income.
Simulate Your ROI
Use OffPlanSimulator to model your exact scenario — including payment plans, DLD fees, your rent assumption and your resale assumption.
Reviewed by Ahmed Benjas, co-founder & CEO of Cevitas Real Estate
Moroccan real estate expert based in Dubai, co-founder & CEO of Cevitas Real Estate, a RERA-licensed brokerage (NGI House, Deira), with an AED 200M+ track record. He works in French, Arabic, Darija and English.
Who is Ahmed Benjas? · Moroccan real estate broker in Dubai · His guides on cevitas.ae
Related guides
Calculators for this guide: Dubai property ROI calculator · Off-plan calculator Dubai