Dubai Rental Yield by Area: 2026 Figures and Net Calculation
Dubai rental yield is the annual rent a property earns divided by a price, and the figures published in 2026 run from a citywide villa average of about 4.5% to above 9% for some apartment communities, depending on the area, the unit type and who compiled the data. This guide states every figure as of 26 October 2026 and names the publisher, the month and, where the publisher gives it, the method behind each number.
The reader will find here how Dubai rental yield is calculated on a gross and a net basis, a worked example in dirhams and dollars that includes service charges, vacancy, a leasing commission and utility bills, citywide averages from several named sources placed side by side, an area-by-area table for apartments, a table for villas and townhouses, a comparison of studios, one-bedroom and two-bedroom units, and an explanation of why two reports can give different percentages for the same area. Prices are in UAE dirhams with US dollars in brackets at the fixed peg of 3.6725 dirhams per dollar. Nothing here is a forecast or a recommendation to buy or let a particular property.
Dubai Rental Yield at a Glance
| Question | Position on 26 October 2026 | Basis |
|---|---|---|
| Citywide average, all residential | 6.34% gross for August 2026 (6.5% in another August 2026 update from the same broker) | Property Monitor figures as printed by Engel & Völkers; Engel & Völkers 27 August 2026 |
| Apartments against villas | 6.66% for apartments, 5.06% for townhouses, 4.45% for villas | Property Monitor, August 2026 |
| Spread across apartment communities | 4.58% (Palm Jumeirah) to 8.93% (International City) | Property Monitor, August 2026 |
| Studio against two-bedroom, same area | Dubai Silicon Oasis 9.4% against 7.4%; JVC 8.2% against 7.2% | Property Finder, 19 June 2026, DLD transaction records |
| What a gross figure leaves out | Service charges, vacancy, maintenance, financing and purchase costs | FAM Properties, 13 July 2026; Cavendish Maxwell as quoted by Meraas |
| Who pays service charges | The landlord | Dubai Land Department FAQ |
| Municipality housing fee | 5% of annual rent, added to the tenant’s electricity and water bill | Dubai Land Department FAQ; u.ae |
| Tenancy registration (Ejari) | AED 177.75 ($48.40) by app or website; AED 220 ($59.90) at a trustee centre | Dubai Land Department |
| Registration fee on purchase | 4% of the property value | Dubai Land Department release of 31 May 2021 |
| Cap on a rent increase at renewal | 0% to 20%, set by how far the rent sits below the area average | Decree No. 43 of 2013 |
Two points frame everything below. First, almost every area figure in public reports is a gross yield, meaning rent divided by price before any cost is deducted. Second, the same community can appear at different percentages in reports published in the same month, because the period, the price basis and the unit mix are not the same. Both points are treated in detail in the sections that follow.
What Dubai Rental Yield Means: Gross, Net and Total-Cost Yield
Engel & Völkers, in its explanation of the term, defines gross rental yield as annual rent divided by purchase price, multiplied by 100, and gives a sample of AED 96,000 ($26,140) of annual rent on AED 1,200,000 ($326,753), which comes to 8%. Dubai rental yield in that gross sense is therefore a ratio of two prices and says nothing about what the owner keeps. The same page defines net rental yield as annual rent minus annual expenses, divided by the purchase price, where the expenses include service charges, an estimate for maintenance and property management fees. The page is the Engel & Völkers rental yield guide that prints Property Monitor data for August 2026.
Three versions of the ratio are in common use, and they are easy to confuse:
- Gross yield on price. Annual rent divided by the price paid (or, in a listing, the asking price). This is the figure in nearly all area tables.
- Net yield on price. Annual rent less running costs, divided by the same price. It needs an owner’s own cost inputs, so no area table can supply it.
- Yield on total cost. Net or gross income divided by the price plus the one-off costs of buying, such as the Dubai Land Department registration fee. It is lower than the same yield on price because the denominator is larger.
The Dubai Land Department itself explains the limits of an average. On the open-data page for its Residential Rental Performance Index, built with Property Finder, the department says the index uses a hedonic regression model, which treats each home as a bundle of attributes, and warns that it should not be used for pricing, investment decisions or performance measurement. A dataset of community yields released in July 2026 from Dubai Land Department records makes a related point: its description on IEEE DataPort says gross yield is a rent-to-price measure before operating costs and that community figures do not represent individual properties.
Yield is also separate from price change. A home can show a stable Dubai rental yield while its market value rises or falls, and a falling price with unchanged rent raises the gross percentage without any extra income. For that reason a yield percentage should be read together with the price basis and the date it was measured on.
How to Calculate Dubai Rental Yield Step by Step
The sequence below turns a quoted rent and price into a gross and a net figure. The example is hypothetical: a one-bedroom apartment of 1,000 sq ft (net internal area) bought for AED 1,000,000 ($272,294) and let for AED 70,000 ($19,061) a year. The service charge of AED 15 per sq ft ($4.08), the maintenance allowance, the one-month vacancy, the 5% management fee and the utility amount are assumptions chosen to show the arithmetic. They are not quoted rates for any building.
- Fix the rent. Use the annual rent in a registered tenancy contract, not an advertised asking rent. Here it is AED 70,000 ($19,061).
- Fix the price. Use the price actually paid. Here it is AED 1,000,000 ($272,294).
- Compute gross yield. AED 70,000 ($19,061) divided by AED 1,000,000 ($272,294) is 0.07, so the gross yield is 7.00%.
- Add the purchase costs. The registration fee is 4% of the value, which is AED 40,000 ($10,892), so total cost before other fees is AED 1,040,000 ($283,186). Gross yield on that base is 6.73%.
- List the yearly costs. Service charge, maintenance, management, leasing commission and utilities between tenants (the next section explains each).
- Allow for vacancy. One empty month removes one twelfth of the rent, which is AED 5,833 ($1,588) here.
- Subtract and divide. Net income divided by the price gives net yield on price, and divided by total cost gives yield on total cost.
The table runs the example twice. Case A assumes the tenant renews, the owner manages the unit and no month is vacant. Case B assumes a change of tenant, a month without rent, a leasing commission at 5% of a year’s rent and a management fee at 5% of the rent actually collected.
| Line (assumed inputs) | Case A: tenant renews, self-managed | Case B: tenant changes, managed |
|---|---|---|
| Annual contract rent | AED 70,000 ($19,061) | AED 70,000 ($19,061) |
| Vacancy (one month in Case B) | none | −AED 5,833 ($1,588) |
| Service charge (1,000 sq ft at AED 15 per sq ft) | −AED 15,000 ($4,084) | −AED 15,000 ($4,084) |
| Maintenance allowance | −AED 3,000 ($817) | −AED 3,000 ($817) |
| Management fee (5% of rent collected) | none | −AED 3,208 ($874) |
| Leasing commission (5% of annual rent) | none | −AED 3,500 ($953) |
| Utilities between tenants | none | −AED 1,000 ($272) |
| Net income | AED 52,000 ($14,159) | AED 38,458 ($10,472) |
| Gross yield on price | 7.00% | 7.00% |
| Net yield on price | 5.20% | 3.85% |
| Net yield on total cost (price plus 4% registration fee) | 5.00% | 3.70% |
The gap between 7.00% gross and 3.85% net in Case B, about 3.2 percentage points, is the reason a gross area figure cannot be used as a take-home rate. Both cases rest on assumptions, and an owner would replace each with the figure from the building’s own service charge notice, the management contract and the lease.
Costs That Separate Gross From Net Dubai Rental Yield
Each cost below has an official or published basis for the rule, even though the amount depends on the building and the contract.
Service charges
The Dubai Land Department FAQ states that the landlord is responsible for property service fees. The amounts are set per project, and the department’s Service Charge Index e-service lets a user look them up by project, usage and year or by title deed number. The page notes that the result does not include arrears and that, for invoices issued after 2019, balcony area is counted at 0.25% of suite area. An air-conditioning (district cooling) contribution can be billed separately where units are not individually metered, according to the same FAQ, and the developer or owners’ association usually collects it.
Vacancy and turnover
A yield calculated on twelve months of rent assumes no empty weeks. Cavendish Maxwell data quoted by Meraas put renewals at about 63.5% of the more than 590,000 rental contracts in 2025, which means roughly 36.5% of contracts were new tenancies rather than renewals. Engel & Völkers counted more than 271,000 tenancy contracts registered in the first half of 2026. Neither figure gives an average void period, so the example above simply shows what one empty month costs.
Leasing commission and management
The UAE government’s page on leasing states that some brokers may charge a commission of up to 5% of the total rent; it does not say who pays, so the split is a matter for the parties. A property management company, where used, charges under a separate contract, and the Dubai Land Department has an e-service for registering and renewing that contract. No official rate for management fees applies to every owner, which is why the example treats the 5% as an assumption.
Tenancy registration
An Ejari registration made through the Dubai REST app or the department’s website costs AED 177.75 ($48.40) in total: AED 100 for the registration, AED 10 as a knowledge fee, AED 10 as an innovation fee, and a service partner fee of AED 55 plus AED 2.75 VAT. At a real estate services trustee centre the total is shown as AED 220 ($59.90). The department’s Ejari service page lists both channels. The sum is small beside the rent, but it recurs with each renewal or new tenant.
Utilities and the housing fee
The Dubai Municipality housing fee is 5% of the annual rent and is paid by the tenant through the electricity and water bill, according to the Dubai Land Department FAQ and the u.ae leasing guide. It is a tenant cost, so it does not reduce the owner’s net income, but it adds to the tenant’s total cost of occupying the home, which is one input to what rent the market will bear. Any utility charges that fall between tenancies are an owner cost; the example uses AED 1,000 ($272) as a placeholder.
Maintenance and purchase costs
No published average covers repair spending, and the example uses AED 3,000 ($817) a year as a stated assumption. On the purchase side, the Dubai Land Department said on 31 May 2021 that the registration fee is 4% of the property value, payable by the buyer. For an off-plan sale, the department’s initial sale service page lists 2% for the seller and 2% for the purchaser plus AED 10 knowledge and AED 10 innovation fees. The wider list of buying costs, such as trustee and mortgage fees, is covered in our guide to buying property in Dubai fees and costs.
Service Charges and Their Effect on Net Yield
Because the charge is billed per square foot and the landlord pays it, it is the cost that moves net yield most between buildings with the same rent. The table holds the example constant (AED 70,000 ($19,061) of rent, 1,000 sq ft, AED 3,000 ($817) of maintenance, a price of AED 1,000,000 ($272,294)) and changes only the assumed rate. The rates are test values, not quotations for any project.
| Assumed service charge | Yearly charge | Net income | Net yield on price | Gross yield minus net |
|---|---|---|---|---|
| AED 10 per sq ft ($2.72) | AED 10,000 ($2,723) | AED 57,000 ($15,521) | 5.70% | 1.30 points |
| AED 15 per sq ft ($4.08) | AED 15,000 ($4,084) | AED 52,000 ($14,159) | 5.20% | 1.80 points |
| AED 20 per sq ft ($5.45) | AED 20,000 ($5,446) | AED 47,000 ($12,798) | 4.70% | 2.30 points |
| AED 25 per sq ft ($6.81) | AED 25,000 ($6,807) | AED 42,000 ($11,436) | 4.20% | 2.80 points |
| AED 30 per sq ft ($8.17) | AED 30,000 ($8,169) | AED 37,000 ($10,075) | 3.70% | 3.30 points |
Each extra AED 5 per square foot ($1.36) on a 1,000 sq ft unit removes AED 5,000 ($1,361) a year, which is 0.5 percentage points on a AED 1,000,000 ($272,294) purchase. A building with a higher rent can offset a higher charge, and a building with a lower charge can offset a lower rent, so the pair has to be looked at together. Our separate article on Dubai service charges covers who sets the budget, how the charge is invoiced and what happens on non-payment.
The practical point for reading yield tables is that none of the area percentages in this guide deducts the charge. The FAM Properties ranking states this directly, saying that gross yield does not account for service charges, vacancy, maintenance, financing or buying costs. The Meraas journal makes the same statement about the Cavendish Maxwell figures it quotes.
Published Citywide Dubai Rental Yield Averages in 2026
The table lines up every citywide figure found in the sources used for this guide. They are gross yields unless the publisher says otherwise, and the right-hand column gives the date or period each one describes.
| Source (publisher) | Period | All residential | Apartments | Townhouses | Villas |
|---|---|---|---|---|---|
| Property Monitor, as printed by Engel & Völkers (rental yield guide, updated 9 Sep 2026) | August 2026 | 6.34% | 6.66% | 5.06% | 4.45% |
| Engel & Völkers, highest-ROI article (27 Aug 2026) | August 2026 | 6.5% | 6.8% | 5.1% | 4.5% |
| Engel & Völkers, housing market review (updated 9 Sep 2026) | August 2026 | 6.3% | 6.7% | 5.1% | 4.5% |
| Engel & Völkers, same review, FAQ | July 2026 | 6.58% | about 6.9% | 5.1% | 4.5% |
| Engel & Völkers, H1 2026 residential report | June 2026 | 6.6% | 6.9% | 5.1% | 4.5% |
| Cavendish Maxwell, as quoted by Meraas (10 Apr 2026) | 2025 | n/a | 7.0% | 4.8% (villas and townhouses) | 4.8% (villas and townhouses) |
| dataHabibi, from Dubai Land Department records (Mendeley Data, 3 Jul 2026) | June 2026 | 8.16% (141 areas) | n/a | n/a | n/a |
| Khaleej Times (16 Feb 2026), no data provider named | 2026 | 6% to 8% | n/a | n/a | n/a |
Several readings follow from the table. The Engel & Völkers series moves from 6.6% for June to 6.58% in a July reference, then to between 6.3% and 6.5% for August, depending on which of its pages is read; the apartment figure moves from 6.9% to between 6.66% and 6.8% over the same months. Each page is a separate compilation, so the movement between them should not be read as a trend. What stays constant across them is the ordering of property types: apartments above townhouses, townhouses above villas, with townhouses at 5.1% and villas at 4.5% in all of the broker’s updates.
The dataHabibi figure of 8.16% sits well above the others. The Mendeley Data record describes the dataset as Dubai Land Department transaction and rental records aggregated by dataHabibi, covering 5,528 buildings, 3,730 projects and 141 areas, and the method note is held on the provider’s own site. The record does not state how the average is weighted, so the figure is shown here as one compiler’s result and is not combined with the others.
The Khaleej Times article of 16 February 2026 reports a Dubai average of 6% to 8% and places London, New York and Singapore at 3% to 5%, without naming the data provider for those ranges. It is cited here for the comparison only. The other averages in the table are compiled by brokers, portals and data providers from registered transactions and listings.
Price levels matter to the denominator. Cavendish Maxwell, in figures reported by Zawya on 6 July 2026, counted almost 79,200 residential sales transactions worth about AED 221.3 billion ($60.3 billion) in the first half of 2026, with sales value down 15.7% against the first half of 2025 and transactions down just under 14%. The yield tables do not separate the price effect from the rent effect, so a change in a published percentage between two reports cannot be assigned to rents alone. The wider market context is discussed in our Dubai real estate market guide.
Dubai Rental Yield by Area: Apartment Communities
The table combines four published area tables. Property Monitor figures are the August 2026 apartment yields printed by Engel & Völkers. The Engel & Völkers column comes from its 27 August 2026 article, which also gives August 2026 apartment gross yields. The Property Finder column uses the summary table in its article of 21 October 2026, where prices are taken from Dubai Land Department transaction records on the Data Guru platform. The FAM Properties column is a 12-month resale gross yield ranking published on 13 July 2026, whose data provider the article does not name. A dash means that source gives no figure for the area.
| Community | Property Monitor, Aug 2026 | Engel & Völkers, Aug 2026 | Property Finder, 21 Oct 2026 | FAM Properties, 12-month resale, Jul 2026 |
|---|---|---|---|---|
| International City | 8.93% | 8.89% | 8.71% | – |
| Dubai Investments Park | – | 9.61% | 9.59% | – |
| Dubai Sports City | 7.76% | 7.89% | 8.76% | – |
| Discovery Gardens | – | 7.83% | 8.30% | – |
| Dubai Production City | – | 8.18% | – | – |
| Dubai Silicon Oasis | 6.69% | – | 8.47% | – |
| Al Furjan | 7.08% | – | 7.84% | – |
| Dubai South | 7.21% | – | – | – |
| Arjan | 6.95% | – | – | – |
| Jumeirah Village Circle (JVC) | 6.36% | – | 8.12% | 7.23% |
| Jumeirah Lakes Towers (JLT) | 6.58% | – | 7.55% | – |
| Business Bay | 5.92% | – | – | – |
| Dubai Hills Estate | 5.82% | – | – | 5.83% |
| Dubai Marina | 5.51% | 5.64% | – | 5.90% |
| Jumeirah Beach Residence (JBR) | 5.19% | – | – | – |
| Dubai Creek Harbour | 5.12% | – | – | – |
| Downtown Dubai | 5.10% | 5.21% | – | – |
| Palm Jumeirah | 4.58% | 4.66% | – | – |
| Emaar Beachfront | – | – | – | 4.62% |
The rows are ordered by the Property Monitor column where it exists. Three groupings appear in every source. Communities near the waterfront and the central business districts, namely Palm Jumeirah, Downtown, Dubai Creek Harbour, JBR and Dubai Marina, sit between 4.5% and 6%. Communities that are further from those districts and priced lower per square foot, namely International City, Dubai Investments Park, Dubai Sports City and Discovery Gardens, sit at 7.7% and above in all sources that list them. Mid-market areas fall between the two, with the most variation in JVC and Dubai Silicon Oasis, where the Property Finder figure is about 1.8 points above the Property Monitor figure in both.
Those two gaps are the clearest illustration of the data problem. JVC is 6.36% in one table, 7.23% in a resale ranking and 8.12% in another. The Property Finder article of 19 June 2026 uses 8.0% for JVC in its headline table and 8.2%, 7.4% and 7.2% for studios, one-bedroom and two-bedroom units. The Gulf News report on Bayut and Dubizzle data for 2025 gives mid-market villas in JVC, Mudon and Town Square a yield of 5% to 7%. A reader comparing JVC with Dubai Marina on one source will therefore see a gap of about 0.9 points (Property Monitor, 6.36% against 5.51%) while on another source the gap is about 1.3 points (FAM, 7.23% against 5.90%). The direction is the same across sources and the size is not.
For a closer look at the two districts that most buyers compare, our article on Downtown against Marina sets out prices and service charges side by side, and the guide to JVC apartments for sale covers that community. Area-level choices more broadly are discussed in our comparison of areas for investors and the article on Dubai apartment prices per square metre. On the listings side, Oxford Terraces in JVC is, per our listing page, a completed building in which only resale or rental units remain: Oxford Terraces, JVC (Iman Developers). In Dubai South, the page for Celestia, Dubai South describes furnished studio to two-bedroom apartments of 539 to 733 sq ft that were delivered in 2019, per our listing page. Developer background is on the Iman Developers profile.
Villa and Townhouse Dubai Rental Yield by Community
Villa and townhouse yields are lower than apartment yields in every source reviewed. Property Monitor figures for August 2026, as printed by Engel & Völkers, cover seventeen communities.
| Community | Villa or townhouse gross yield, Aug 2026 |
|---|---|
| Al Barari | 6.57% |
| The Sustainable City | 5.82% |
| Jumeirah Golf Estates | 5.76% |
| DAMAC Hills 2 | 5.71% |
| DAMAC Hills | 5.34% |
| Villanova | 5.21% |
| District One, MBR City | 5.17% |
| Mudon | 5.08% |
| Town Square | 5.07% |
| Arabian Ranches 3 | 4.83% |
| Al Furjan | 4.77% |
| Dubai Hills Estate | 4.69% |
| Arabian Ranches 2 | 4.61% |
| Jumeirah Village Circle (JVC) | 4.57% |
| Arabian Ranches | 4.00% |
| Jumeirah Park | 3.48% |
| Jumeirah Islands | 3.26% |
The spread inside the villa category runs from 3.26% to 6.57%, and the citywide villa figure of 4.45% sits between the two ends. The Property Monitor table also shows that the same community name can carry two very different figures by property type: JVC is 6.36% for apartments and 4.57% for villas and townhouses, Al Furjan 7.08% and 4.77%, and Dubai Hills Estate 5.82% and 4.69%.
The Gulf News report of 10 January 2026, drawing on Bayut and Dubizzle data for 2025, grouped communities by price tier instead of by name. In that report, affordable villas such as DAMAC Hills 2, Serena and International City showed yields above 5.4%, mid-market villas in JVC, Mudon and Town Square 5% to 7%, and prime villas in Mohammed Bin Rashid City, Al Barsha and Al Barari above 5.8%. For apartments it gave 9% to 10% in International City, Dubai Investments Park and Discovery Gardens, and 7% to 9% in Living Legends, Town Square and Al Furjan. The same report said annual rents for affordable apartments rose by up to 21% in 2025, mid-tier apartments by up to 7% and prime apartments were mostly flat, which shows how rent growth differed between price tiers.
The cost lines differ by property type as well, so a gross villa figure and a gross apartment figure are not directly comparable once service charges, maintenance and vacancy are applied; each should be checked against the community’s own budget. Villa communities are compared in our articles on affordable villa communities and villa communities in Dubai.
Studio, One-Bedroom and Two-Bedroom Dubai Rental Yield
Property Finder’s article of 19 June 2026 gives gross yields by bedroom count for six communities, and states that its prices and yields are taken from Dubai Land Department transaction records on Data Guru. A dash means the article lists no figure.
| Community | Studio | One-bedroom | Two-bedroom | Three-bedroom |
|---|---|---|---|---|
| Dubai Silicon Oasis | 9.4% | 8.7% | 7.4% | – |
| International City | 8.3% | 8.7% | – | 7.4% |
| Dubai Sports City | 8.8% | 8.8% | – | – |
| Al Warsan | 8.3% | 8.3% | – | – |
| Jumeirah Village Circle | 8.2% | 7.4% | 7.2% | – |
| Dubai Land (apartments) | 8.6% | 8.3% | 8.5% | – |
In five of the six rows the studio yield is equal to or higher than the one-bedroom yield; International City is the exception at 8.3% against 8.7%. Three communities have studio, one-bedroom and two-bedroom figures together. In Dubai Silicon Oasis and JVC the yield falls as the unit gets larger, while in Dubai Land the two-bedroom figure of 8.5% is above the one-bedroom figure of 8.3% and just below the studio figure of 8.6%. The pattern is therefore common but not universal, and it depends on how rents and prices scale with size in each community.
The arithmetic can be seen in the Property Finder JVC article of 16 June 2026. It gives 2026 sale prices of AED 1,600 to 1,700 per sq ft ($436 to $463) for studios of 350 to 550 sq ft, AED 1,350 to 1,450 ($368 to $395) for one-bedroom units of 600 to 1,000 sq ft, and AED 1,300 to 1,420 ($354 to $387) for two-bedroom units of 1,000 to 1,700 sq ft. As an illustration only, a 450 sq ft studio at AED 1,650 per sq ft would cost AED 742,500 ($202,178), and a rent of AED 52,000 ($14,159), a figure inside the AED 47,000 to 55,000 range of asking rents on that article’s listing cards, would give a gross yield of 7.0%. An 800 sq ft one-bedroom at AED 1,400 per sq ft would cost AED 1,120,000 ($304,969), and rents of AED 74,000 ($20,150) to AED 82,000 ($22,328), taken from the one-bedroom cards in the same article, would give 6.6% to 7.3%. These are listing-card asking rents, not registered contract rents, so they show the mechanism and not a market average.
A gross table cannot show how service charges, vacancy and turnover differ between unit sizes inside one building, so the net figure for each size has to be calculated from that building’s own costs. The article on property types for Dubai investment discusses the unit mix, and the guide to buying in Dubai on a low budget covers entry prices for smaller units.
Why Published Dubai Rental Yield Figures Differ
Two reports can give two different numbers for one community. The table lists the reasons that account for most of the gaps, with a concrete example from the sources used in this guide.
| Factor | How it changes the figure | Example from the sources |
|---|---|---|
| Period | Rents are registered at lease start and prices at sale, so a 12-month window and a single month use different transactions | FAM uses a 12-month resale window; the broker updates use named months |
| Price basis | Asking price, transacted resale price and developer launch price give different denominators | Property Finder uses Dubai Land Department transaction prices; FAM uses resale only |
| Rent basis | Registered Ejari rent, advertised asking rent and renewal rent are not the same | Property Finder JVC article shows asking rents on individual listings |
| Unit mix | A community with many studios has a higher average than one with many large units | JVC studio 8.2% against two-bedroom 7.2% |
| Averaging method | A simple mean over buildings, a median and a transaction-weighted mean differ | dataHabibi 8.16% across 141 areas against 6% to 8% elsewhere |
| Gross or net | Net figures deduct costs, so a net table is always lower than a gross one for the same data | Cavendish Maxwell and FAM state their figures are gross |
| Property type scope | Apartment-only, villa-only and all-residential averages are different populations | Apartments 6.66%, villas 4.45%, all 6.34% (Property Monitor) |
| Sample size | A community with few transactions in the window can swing sharply | FAM lists JVC at 4,739 resale transactions and Emaar Beachfront at 430 |
The sample-size row shows the numbers FAM prints beside each community in its resale ranking: 4,739 transactions for JVC, 1,360 for Town Square, 1,131 for Sobha Hartland, 972 for DAMAC Hills, 2,314 for Dubai Marina, 1,521 for Dubai Hills Estate and 430 for Emaar Beachfront. A percentage based on 430 sales is more sensitive to a few unusual deals than one based on 4,739. FAM also prints the median resale price per sq ft for each community (AED 1,343 for JVC, AED 1,930 for Dubai Marina, AED 2,349 for Dubai Hills Estate, AED 3,567 for Emaar Beachfront) and the 12-month price change, which for Emaar Beachfront was a decline of 1.4%.
A lower price per square foot can by itself produce a higher percentage. If two apartments of equal size are let at similar rents, the one that cost less shows the higher yield. Among the seven communities in the FAM table, median resale price per square foot runs from AED 1,327 ($361) in Town Square to AED 3,567 ($971) in Emaar Beachfront, and the yields for those two are 6.44% and 4.62%. The pairing shows the direction of the relationship; it does not show what rent per square foot is in either place.
The Dubai Land Department’s Rental Index adds one more source of difference. The e-service takes the contract expiry date, property type, area, number of rooms and current annual rent, and returns the average rent for the area and the permitted increase. It is built for rent-increase checks, and the department’s FAQ says the index is indicative and not mandatory for a new lease, so market rents for a new tenant can sit above or below it.
The Rent Side of Dubai Rental Yield: Renewals, Caps and Notice
Yield moves when rent moves, and renewal rents in Dubai follow a rule. Decree No. 43 of 2013, issued on 18 December 2013 and published on the Dubai Legislation Portal, caps the increase at renewal according to how far the current rent sits below the average rental value of similar units:
| Current rent compared with the average for similar units | Highest permitted increase at renewal |
|---|---|
| Up to 10% below the average | 0% |
| 11% to 20% below | 5% |
| 21% to 30% below | 10% |
| 31% to 40% below | 15% |
| More than 40% below | 20% |
The decree sets the bands; the Dubai Land Department’s Rental Index service supplies the average used for the comparison. The department’s FAQ says an owner must give the tenant at least three months’ notice of an increase at renewal, and that either party wishing to change the terms of the contract should notify the other at least 90 days before expiry unless both agree otherwise. Because of the cap, a rent set below the area average can move toward it only in steps, which is one reason a landlord’s actual yield on an older tenancy can differ from the yield implied by current asking rents. The landlord’s side of the process, including registration, notice and holiday-home permits, is set out in our guide to renting out property in Dubai.
On supply, the Engel & Völkers housing market review (updated 9 September 2026) says about 42,000 residential units were handed over in 2025 against about 29,000 the year before, that more than 150,000 units were launched in 2025 with much of that supply scheduled for 2028 and later, and that about 83,000 units were expected to complete in 2026, a number the page says is likely to come in lower. These are the broker’s estimates, and how many units reach the rental market in a given community depends on the share held by owner-occupiers. The article on whether the Dubai property market could fall looks at supply indicators in more detail, and the guide to how buyer protection works in Dubai covers the registration and escrow rules that apply to off-plan purchases.
Checking Dubai Rental Yield for One Building Before Using an Area Average
An area average is a starting point and not a measure of any single unit. The sources below let a reader replace each average input with a building-level one.
| Input | Where to find it | What it shows |
|---|---|---|
| Average rent for the area and unit type | Dubai Land Department Rental Index (Ejari system, Dubai REST app, DubaiNow) | Average rent and the permitted renewal increase from contract expiry, property type, area, rooms and current rent |
| Actual rent being paid | The registered Ejari tenancy contract | Contract rent, dates and parties |
| Service charge | Dubai Land Department Service Charge Index | Charge by project, usage and year; balcony counted at 0.25% of suite area for invoices after 2019 |
| Price paid | Title deed or sale agreement; Dubai Land Department transaction records | The denominator for the yield on price |
| Purchase costs | Dubai Land Department fee pages and the sale agreement | Registration fee of 4% of value; on an off-plan initial sale, 2% each for seller and purchaser plus AED 10 knowledge and AED 10 innovation fees |
| Housing fee | DEWA bill | 5% of annual rent, paid by the tenant |
Three further points sit outside the percentage. On residency, the UAE Golden Visa through property needs a property value of AED 2,000,000 ($544,588) or more, as our guide to the Dubai Golden Visa explains; yield has no bearing on that condition, and a higher yield does not change it. On tax, Dubai has no annual property tax and no personal income tax, and the rules in an owner’s home country on rental income are a separate matter covered in our article on tax on Dubai property for foreign owners and the note on property tax in Dubai. On off-plan units, the yield on a unit that has not yet been handed over is a calculation on a price paid in instalments, and no rent is earned until completion; the off-plan buyer’s guide sets out the stages.
Foreign freehold ownership is permitted in designated areas, and the position on who may buy where is in the guide for foreign buyers of Dubai apartments. For a broader view of the emirate and the country, see the Dubai city page and the UAE country page. A listing for a completed building gives a more direct reading of the price side than a launch brochure does, and the Dubai developer directory lists profiles for seven developers.
Frequently Asked Questions
What is the average Dubai rental yield in 2026?
The average Dubai rental yield published for all residential property in 2026 falls mostly between 6.3% and 6.6%: 6.34% for August 2026 in Property Monitor figures printed by Engel & Völkers, 6.5% in the same broker’s 27 August article and 6.6% in its H1 2026 report. A dataset built from Dubai Land Department records gives 8.16% for June 2026, and a February 2026 Khaleej Times article gives 6% to 8%. The averages differ because the sources use different periods, unit mixes and averaging methods.
Which areas have the highest Dubai rental yield in published data?
In the August 2026 Property Monitor table the highest Dubai rental yield figures for apartments are International City at 8.93%, Dubai Sports City at 7.76%, Dubai South at 7.21%, Al Furjan at 7.08% and Arjan at 6.95%. Engel & Völkers lists Dubai Investments Park at 9.61% and Property Finder at 9.59%. The lowest are Palm Jumeirah at 4.58% and Downtown Dubai at 5.10% in the Property Monitor table. These are gross figures and community averages.
How do I calculate Dubai rental yield?
Dubai rental yield is worked out by dividing the annual rent by the purchase price and multiplying by 100 for the gross figure. For the net figure, subtract the yearly costs, mainly the service charge, maintenance, any management fee, a leasing commission and the cost of empty months, from the rent before dividing. Adding the 4% registration fee to the price gives the yield on total cost. The example in this guide turns a 7.00% gross yield into 5.20% or 3.85% net on price, depending on the assumptions.
Are published Dubai rental yield figures gross or net?
Nearly all published Dubai rental yield figures are gross. FAM Properties states that its figures do not account for service charges, vacancy, maintenance, financing or buying costs, and the Meraas journal says the same of the Cavendish Maxwell figures it quotes. The IEEE DataPort description of the dataHabibi dataset also calls gross yield a rent-to-price measure before operating costs. A net figure has to be calculated from a building’s own costs.
How much do service charges reduce Dubai rental yield?
The effect on net Dubai rental yield depends on the rate per square foot and the rent. In the worked example, with AED 70,000 ($19,061) of annual rent on a AED 1,000,000 ($272,294) apartment of 1,000 sq ft, every additional AED 5 per square foot ($1.36) removes 0.5 percentage points of net yield. The Dubai Land Department says the landlord is responsible for service fees, and its Service Charge Index shows the charge for a project.
Do villas or apartments have the higher Dubai rental yield?
Dubai rental yield is lower for villas than for apartments in the sources reviewed. In the August 2026 Property Monitor figures apartments averaged 6.66%, townhouses 5.06% and villas 4.45%. Villa communities ranged from 3.26% in Jumeirah Islands to 6.57% in Al Barari. The cost lines differ by property type as well, so the two gross figures are not directly comparable once costs are applied.
Are studios higher in Dubai rental yield than two-bedroom apartments?
In Property Finder’s 19 June 2026 table, Dubai rental yield for studios is 9.4% against 7.4% for two-bedroom units in Dubai Silicon Oasis and 8.2% against 7.2% in JVC, while in Dubai Land the two-bedroom figure of 8.5% is above the one-bedroom figure of 8.3% and just below the studio figure of 8.6%. The pattern is common and not universal, and smaller units can involve more frequent tenant changes.
Where can I check the rent and service charge for a specific building?
The Dubai Land Department Rental Index gives the average rent and the permitted increase for an area, property type and number of rooms. The Service Charge Index gives the charge by project, usage and year. The registered Ejari contract shows the rent being paid. A Dubai rental yield worked out from these three inputs is a building-level figure, unlike an area average.
Does Dubai rental yield include tax?
No. Dubai rental yield is a ratio of rent to price and contains no tax. Dubai has no annual property tax and no personal income tax, but rules differ by person, and the tax position of rental income in an owner’s home country is a separate question covered in our article on tax on Dubai property for foreign owners.
Last checked: 26 October 2026. Sources: Dubai Land Department, registration fee release (31 May 2021); Dubai Land Department, initial sale service; Dubai Land Department, Ejari; Dubai Land Department, Rental Index; Dubai Land Department, Service Charge Index; Dubai Land Department, FAQ; Dubai Land Department, Residential Rental Performance Index; Dubai Legislation Portal, Decree No. 43 of 2013; u.ae, leasing a property in the UAE; Engel & Völkers (Property Monitor data), rental yield guide; Engel & Völkers, highest-ROI article; Engel & Völkers, Dubai housing market review; Engel & Völkers, H1 2026 residential report; Property Finder, apartments ROI (21 Oct 2026); Property Finder, rental property ROI (19 Jun 2026); Property Finder, JVC listings (16 Jun 2026); FAM Properties, yield ranking (13 Jul 2026); Meraas journal (Cavendish Maxwell data); Gulf News (Bayut and Dubizzle data); Khaleej Times (16 Feb 2026); Mendeley Data, dataHabibi dataset; IEEE DataPort, dataHabibi dataset; Zawya via TradingView, Cavendish Maxwell H1 2026 sales. Percentages are gross unless stated, and area averages do not describe individual units.









