InvestmentUpdated March 1, 2026· 3 min read
Gross Rental Yield
What is Gross Rental Yield?
Gross rental yield is the annual rental income of a property divided by its purchase price, expressed as a percentage. It is the fastest way to compare Dubai investment properties before accounting for service charges, management fees or vacancy.
Definition
Gross yield is useful for quick screening but overstates real return. It excludes service charges, agency fees, DEWA, insurance, vacancy and management costs — which is why net yield is the more accurate benchmark.
Key Facts
- 1Formula: annual rent ÷ purchase price × 100.
- 2Dubai average (2025): ~6–8% for apartments.
Frequently Asked Questions
Is gross or net yield more important?
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Net yield reflects actual cash return; gross yield is only useful for high-level screening.
References & Further Reading
- Dubai Land Department (DLD) — official transaction & title records.
- Real Estate Regulatory Agency (RERA) — Ejari, Mollak & rental index.
- Department of Economy and Tourism (DET) — Holiday Home permits.
- Federal Authority for Identity, Citizenship, Customs & Port Security (ICP) — visa rules.
This entry is editorial and informational. It does not constitute legal, financial or tax advice.