Methodology
Yields are calculated using the following methodology:
- Purchase price: Median transaction price from DLD records (trailing 12 months)
- Annual rent: Median annual rent from Ejari (Dubai's tenancy registration system) data and comparable listings
- Gross yield: (Median annual rent ÷ Median purchase price) × 100
- Net yield estimate: Gross yield minus estimated annual costs (service charges, management, vacancy, maintenance)
Data limitations
Yield figures are estimates based on median values. Individual yields will vary based on specific unit, floor level, view, condition, and negotiated rent. Furnished units typically command 10–20% higher rent but have higher furnishing and maintenance costs. Short-term rental (holiday let) yields are excluded — see our Airbnb Dubai guides for those figures.
Apartment Yields by Area
| Area | Median Price (1-Bed) | Median Rent (Annual) | Gross Yield | Est. Net Yield |
|---|---|---|---|---|
| Discovery Gardens | AED 420,000 | AED 38,000 | 9.0% | 6.5% |
| International City | AED 380,000 | AED 32,000 | 8.4% | 6.0% |
| Dubai Silicon Oasis | AED 520,000 | AED 42,000 | 8.1% | 5.8% |
| JVC | AED 680,000 | AED 52,000 | 7.6% | 5.4% |
| Dubai Sports City | AED 480,000 | AED 36,000 | 7.5% | 5.2% |
| Business Bay | AED 1,100,000 | AED 75,000 | 6.8% | 4.8% |
| Dubai Marina | AED 1,300,000 | AED 85,000 | 6.5% | 4.5% |
| JBR | AED 1,500,000 | AED 95,000 | 6.3% | 4.3% |
| Downtown Dubai | AED 1,800,000 | AED 105,000 | 5.8% | 3.8% |
| Palm Jumeirah | AED 2,500,000 | AED 130,000 | 5.2% | 3.2% |
Source: PropertyWiki analysis of DLD transaction data and Ejari rental registrations, trailing 12 months to March 2026. 1-bedroom apartments used as benchmark. Net yield estimates assume 10% management fee, community-specific service charges, and 5% vacancy.
Villa Yields by Area
| Community | Median Price (3-Bed) | Median Rent (Annual) | Gross Yield |
|---|---|---|---|
| DAMAC Hills 2 | AED 1,200,000 | AED 85,000 | 7.1% |
| Town Square | AED 1,500,000 | AED 95,000 | 6.3% |
| Dubai Hills Estate | AED 3,500,000 | AED 200,000 | 5.7% |
| Arabian Ranches | AED 3,800,000 | AED 200,000 | 5.3% |
| Palm Jumeirah (villa) | AED 15,000,000 | AED 600,000 | 4.0% |
| Emirates Hills | AED 30,000,000 | AED 900,000 | 3.0% |
Source: PropertyWiki analysis of DLD and Ejari data. Villa yields are generally lower than apartment yields but often accompanied by stronger capital appreciation in established communities.
Studio Apartment Yields
Studios consistently deliver the highest percentage yields across Dubai due to favourable rent-to-price ratios:
| Area | Median Price | Median Rent | Gross Yield |
|---|---|---|---|
| International City | AED 260,000 | AED 25,000 | 9.6% |
| Discovery Gardens | AED 300,000 | AED 28,000 | 9.3% |
| JVC | AED 450,000 | AED 38,000 | 8.4% |
| Dubai Marina | AED 850,000 | AED 60,000 | 7.1% |
| Downtown Dubai | AED 1,200,000 | AED 75,000 | 6.3% |
Studio yield caveat
Higher percentage yields on studios come with trade-offs: higher tenant turnover rates, narrower tenant pool (primarily single professionals), greater sensitivity to economic downturns (studios are often the first to see rent reductions), and lower absolute capital appreciation potential. The "best" yield is not always the best investment.
Gross vs Net Yield
Marketing materials almost exclusively cite gross yields. The gap between gross and net yield in Dubai typically ranges from 1.5–2.5 percentage points:
| Cost Category | Typical Range | Yield Impact |
|---|---|---|
| Service charges | AED 10–35/sqft/year | −0.8% to −1.5% |
| Property management | 8–10% of rent | −0.5% to −0.7% |
| Vacancy allowance | 5–10% of rent | −0.3% to −0.7% |
| Maintenance/repairs | 1–2% of property value | −0.1% to −0.3% |
| Insurance | AED 500–2,000/year | −0.05% to −0.1% |
Rental yield calculator
PropertyWiki's AI property report generator can calculate personalised net yield estimates for specific buildings and unit types, using actual transaction and rental data. Try our Find Home tool for a detailed analysis.
Request free mortgage assessmentYield Trends (2020–2026)
Dubai rental yields have compressed over the 2020–2026 period as purchase prices rose faster than rents:
| Year | Avg. Gross Yield | Market Context |
|---|---|---|
| 2020 | 7.5–8.5% | Low prices post-COVID; rents compressed |
| 2021 | 7.0–8.0% | Recovery began; prices rising faster than rents |
| 2022 | 6.5–7.5% | Strong price growth; rents lagging |
| 2023 | 6.0–7.0% | Yield compression accelerated |
| 2024 | 5.5–7.0% | Rents catching up; area divergence increasing |
| 2025–26 | 5.5–6.5% | Stabilisation; new supply entering market |
Source: CBRE UAE Market Reports, DXBInteract, PropertyWiki analysis. Averages across all residential property types.
Yield Risk Factors
- Supply pipeline: 100,000+ residential units expected to be delivered by 2027. If absorption rates lag, rental declines will compress yields further — or reverse capital gains.
- Service charge inflation: Service charges have increased 10–20% in some communities over 2023–2025. Escalating costs directly reduce net yields.
- RERA rental index caps: Dubai's rental increase cap (based on the RERA rental index) can limit landlords' ability to raise rents to market rates in a rising market.
- Vacancy in emerging areas: New communities with limited retail, transport, and amenity infrastructure may experience higher vacancy rates until the area matures.
- Tenant quality: Higher-yield areas often attract more price-sensitive tenants, which correlates with higher maintenance costs and potential payment default risk.
- Short-term rental regulation: Increasing regulation of Airbnb and holiday homes in Dubai may affect yield calculations for buyers targeting the short-term market.