What your money actually earns in Dubai
Real yield and return figures by area — the numbers we use ourselves before we recommend anything. Because a return you can rely on beats a headline that sounds good.
6–8%
Average gross rental yield — vs 3–4% in London & New York
0%
Capital gains tax, income tax on rent, and annual property tax
~7–10%
Total upfront transaction cost above the purchase price
Rental yield by area
| AREA | GROSS YIELD | NET YIELD (EST.) | BEST SUITED FOR |
|---|---|---|---|
| JVC | 8.5–9.5% | 5.5–6.5% | Cash flow · entry-level |
| Arjan / Dubai Silicon Oasis | 8–9% | ~6% | High yield, low entry price |
| International City | 9–11% | 5.5–6.5% | Lowest entry point |
| Dubai Sports City | 7–9% | 6.6–6.8% | Strong net returns |
| Dubai South | 7–9% | ~5.5% | Yield + long-term growth |
| Business Bay | 5.5–7.6% | 4.8–5.5% | Central · corporate tenants |
| Dubai Marina | 5.5–7.2% | 5.5–6.5% | Liquidity + lifestyle |
| Dubai Hills Estate | 5–6% | ~4.5% | Family · appreciation |
| Downtown / Palm Jumeirah | 4–6% | 3.2–5.5% | Capital growth · prestige |
| Villas (Established) | 4.5–7.2% | — | Appreciation over yield |
Read the net, not the headline
Gross yield is the number you’ll see in every sales pitch. Net yield is what actually reaches your account — after service charges, vacancy periods, and management. A 9% gross yield in a mid-market community typically settles around 5.5–6.5% net.
Service charges are the biggest swing: AED 12–18 per sqft in areas like JVC versus AED 25–35 in Downtown — a difference of one to three full percentage points on your return.
If I wouldn’t buy it myself, I won’t recommend it to you.
Upfront costs (buying)
DLD registration fee
4%
Agency commission
2% + VAT
Trustee office
AED 4,000–5,000
Title deed issuance
AED 580
Mortgage registration (if financed)
0.25%
The Dubai tax advantage
Capital gains tax
0%
Annual property tax
0%
Income tax on rent
0%
Housing fee (via DEWA)
Tenant pays
Selling cost
0%
The figures above are indicative market ranges compiled from publicly available Dubai Land Department, RERA, and portal data as of June 2026. They are provided for general guidance only and do not constitute financial or investment advice. Actual yields and returns vary by building, unit, financing, and market conditions. Speak with our team for a property-specific assessment.
