Expect 5–8% gross for a Dubai apartment, with studios and one-bedrooms in JVC, Business Bay and Dubai Marina at the higher end (6–8%) and larger units in premium areas at the lower end (4–6%). After service charges and management, net yield is typically 1–2 percentage points lower. There is no tax on rental income in the UAE.
Dubai is one of the higher-yielding major property markets in the world, but the headline "gross yield" figure is not what lands in your account. Here is what to actually expect, and how to calculate the net number that matters.
Gross yields by unit and area
| Unit type / area | Gross yield |
|---|---|
| Studio / 1-bed, JVC | 6–8% |
| Studio / 1-bed, Business Bay | 5–7% |
| 1-bed, Dubai Marina | 5–6% |
| 2-bed+, Marina / Downtown | 4–6% |
| Hayat Island, RAK | 6–8% |
Source: DLD, ValuStrat Q1 2026. Smaller units yield more; larger and prime units yield less but appreciate more steadily.
Gross vs net — the calculation that matters
Gross yield = annual rent ÷ purchase price. Net yield subtracts the real costs of ownership:
- Service charges: roughly AED 12–25 per sqft per year (the biggest deduction).
- Property management: ~5% of annual rent if you outsource.
- Maintenance & vacancy: budget a small buffer for both.
Worked example: a 1-bed in Business Bay
| Line | AED |
|---|---|
| Purchase price | 1,300,000 |
| Annual rent | 90,000 |
| Gross yield | 6.9% |
| Less service charges (~800 sqft × AED 18) | (14,400) |
| Less management (5%) | (4,500) |
| Net income | 71,100 |
| Net yield | 5.5% |
Illustrative. Source: Sofia Sands Realty modelling, Q2 2026.
The tax advantage
Crucially, the UAE charges no income tax on rent and no capital gains tax. The 5.5% net in the example above is genuinely net to you — unlike many markets where a 6% gross can become 3–4% after income tax. That tax efficiency is a large part of why Dubai yields compare so favourably internationally.
How to push yield higher
Smaller units (studios, one-beds) and short-term/holiday-let licensing in tourist-heavy areas like Marina and Downtown can lift effective yield meaningfully, at the cost of more active management. The area you choose and the unit size are the two biggest levers on the number you ultimately keep.
Frequently Asked Questions
What is a good rental yield in Dubai?
A good gross yield in Dubai is 6–8%, achievable on studios and one-bedrooms in JVC, Business Bay and Marina. Larger or premium units yield 4–6%. After costs, net yield is typically 1–2 points lower. Source: ValuStrat, DLD, Q1 2026.
How do I calculate net rental yield in Dubai?
Net yield = (annual rent minus service charges, management at ~5%, and a maintenance/vacancy buffer) divided by purchase price. Service charges of AED 12–25 per sqft are usually the largest deduction. Source: Sofia Sands Realty, Q2 2026.
Is rental income taxed in Dubai?
No. The UAE charges no personal income tax on rent and no capital gains tax, so your net yield is genuinely net — a major advantage over markets that tax rental income. Source: Federal Tax Authority, Q2 2026.
Which apartments have the highest yield in Dubai?
Studios and one-bedroom units in JVC, Business Bay and Dubai Marina deliver the highest gross yields (6–8%), because lower purchase prices and strong tenant demand combine. Source: DLD, Q1 2026.
What are service charges in Dubai and how do they affect yield?
Service charges fund building maintenance and amenities, typically AED 12–25 per sqft per year. They are the single biggest deduction between gross and net yield and should always be checked before buying. Source: RERA, Q2 2026.
Can short-term rentals increase my yield in Dubai?
Yes. Licensed holiday-home letting in tourist areas like Marina and Downtown can raise effective yield above standard long-let figures, in exchange for more active management and higher operating costs. Source: Sofia Sands Realty, Q2 2026.
Figures cited reflect Dubai Land Department (DLD), RERA and RAK Properties published schedules and Sofia Sands Realty transaction data as of Q2 2026. Government fees and developer policies change — confirm the current figure for your specific transaction before committing. This page is general information, not individual financial or legal advice.