Data
Dubai real estate yields: what different districts actually return
Headline yields in Dubai marketing material are gross and often optimistic. This page sets out the ranges we see in practice, and the deductions between gross and what actually reaches your account.
Yield bands by segment
Affordable and mid-market communities — Jumeirah Village Circle, Dubai Sports City, Arjan, Dubailand — typically produce 7–9% gross on studios and one-bedroom units. High yield, high turnover, higher management load.
Established mid-tier districts such as Business Bay, Dubai Marina and Downtown sit at 5.5–7.5% gross with better tenant quality and stronger resale liquidity.
Prime and waterfront — Palm Jumeirah, Bluewaters, Jumeirah Bay — run 4–6% gross. Investors here are underwriting capital appreciation and scarcity, not income.
Gross to net
Service charges are the single largest deduction and vary from roughly AED 12 per sqft per year in simple buildings to AED 30+ in serviced towers with extensive amenities. Add letting and management at 5–10% of annual rent, maintenance provision, and a vacancy allowance of two to four weeks.
As a working rule, net yield lands 1.5 to 2.5 percentage points below gross. Any model that skips service charges is not a model.
Short-term letting
Holiday-home licensing through DET can lift gross returns by 2–4 points in tourist-facing locations, but operating costs are materially higher: furnishing, utilities, cleaning, platform fees and much heavier management. Occupancy is seasonal, and building rules sometimes prohibit it outright.
Capital growth versus income
The two rarely maximise in the same unit. Decide which one the allocation is for before you shortlist, because the districts, unit sizes and hold periods that serve each objective are different.
FAQ
What is a good rental yield in Dubai?
6–8% gross is a solid mid-market result. Above 9% usually signals higher turnover, weaker tenant quality or an inflated headline that ignores service charges.
Which Dubai areas have the highest rental yields?
Jumeirah Village Circle, Dubai Sports City, Arjan and parts of Dubailand consistently show the highest gross yields, driven by lower entry prices.
How much are service charges in Dubai?
Roughly AED 12–30 per square foot per year depending on the building and the amenities it operates.
Is short-term rental more profitable in Dubai?
Gross returns are higher in tourist locations, but operating costs and management intensity are substantially higher and occupancy is seasonal.
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