Investment
Understanding Rental Yields in Dubai
Rental yield is the key number for investors. Here is how to calculate it and what affects it in Dubai.
Ahmed Elsawy · CEO · 5 min read
Published · Updated
Short answer: gross rental yield is the annual rent divided by the purchase price. Net yield subtracts costs such as service charges and maintenance, and gives a more realistic picture.
How to calculate yield
Gross yield = annual rent ÷ purchase price × 100. Net yield = (annual rent − yearly costs) ÷ total purchase cost × 100.
What affects yield
- Purchase price compared with local rents
- Service charges for the building
- Vacancy between tenants
- Long-term versus holiday-home rental strategy
Area matters
More accessible areas often show higher percentage yields, while prime areas like Palm Jumeirah may offer lower yields but stronger long-term demand from luxury buyers.
No income tax on rent
The UAE does not charge personal income tax on rental income for individuals, though you should check tax rules in your home country.
Ask Casa Porte for yield estimates on specific properties.
Frequently asked questions
How do I calculate rental yield?
Divide the annual rent by the purchase price and multiply by 100 for gross yield.
Is rental income taxed in Dubai?
The UAE does not charge personal income tax on individual rental income. Check your home-country tax rules.
What is the difference between gross and net yield?
Net yield subtracts costs like service charges and maintenance from the rent.