Gross is not the number
Every listing in Dubai quotes gross yield: annual rent over purchase price. Net yield subtracts service charges, a vacancy allowance, management and maintenance. The gap is typically 1.5 to 2.5 percentage points, and it is wider in buildings with heavy amenities.
Typical ranges we underwrite to
These are the gross bands we see in well-managed buildings. We stress-test every recommendation at the low end.
- Jumeirah Village Circle: 7.5 to 9 percent gross, 5.5 to 7 net.
- Business Bay: 6.5 to 8 percent gross, 5 to 6 net.
- Dubai Marina: 6 to 7.5 percent gross, 4.5 to 5.5 net.
- Downtown Dubai: 5 to 6 percent gross, 3.5 to 4.5 net.
- Dubai Hills Estate: 5 to 6 percent gross, 4 to 5 net.
- Palm Jumeirah: 4.5 to 6 percent gross, 3.5 to 4.5 net.
The variables that move net yield
- Service charges: AED 12 to 35 per square foot a year depending on the building.
- Chiller: some buildings bill district cooling to the tenant, others to the owner.
- Short-let: can lift gross 20 to 40 percent but adds management cost and seasonality.
- Furnishing: furnished units command 10 to 15 percent more rent but depreciate.
General information, not financial or legal advice. Fees and rules are those published by the Dubai Land Department and UAE authorities at the time of writing and can change.