Dubai Property ROI Calculation Guide 2026: Measure Returns

TL;DR / Key Takeaways

• Gross yield - Annual rent divided by property price
• Net yield - After expenses, typically 1-2% lower
• Dubai average - 5-7% gross yields common
• Capital appreciation - Area-dependent growth
• Total return - Yield plus appreciation

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Gross Rental Yield

Formula

Gross Yield = (Annual Rent / Property Price) x 100

Example

• Property Price: AED 1,000,000
• Annual Rent: AED 70,000
• Gross Yield: (70,000 / 1,000,000) x 100 = 7%

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Net Rental Yield

Formula

Net Yield = ((Annual Rent - Expenses) / Property Price) x 100

Typical Expenses

Expense	Estimated Cost
Service Charges	AED 10-25/sqft
Maintenance	5-10% of rent
Management Fee	5-10% of rent
Vacancy	5% allowance

Example

• Gross Rent: AED 70,000
• Expenses: AED 15,000
• Net Rent: AED 55,000
• Net Yield: 5.5%

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Capital Appreciation

Calculation

Appreciation = ((Sale Price - Purchase Price) / Purchase Price) x 100

Dubai Historical

Area	Typical Annual Appreciation
Prime (Marina, Downtown)	5-8%
Emerging (DSO, JVC)	8-12%
New developments	Variable

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Total Return on Investment

Formula

Total ROI = Gross Yield + Capital Appreciation

Example

• Gross Yield: 6%
• Appreciation: 5%
• Total ROI: 11%

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Dubai Yield Comparison

Area	Typical Gross Yield
International City	8-9%
JVC	7-8%
Dubai Marina	5-6%
Downtown Dubai	5-6%
Palm Jumeirah	4-5%

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FAQ

What is good rental yield in Dubai? 6-7% gross yield is considered good in Dubai, with some affordable areas achieving 8-9%.

How do I calculate net yield? Subtract all expenses (service charges, maintenance, vacancy) from annual rent, then divide by property price.

What affects appreciation? Location, infrastructure development, market conditions, and property quality affect capital appreciation.

Should I focus on yield or appreciation? Balance both - yield provides cash flow, appreciation builds wealth over time.

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Sources: Property Finder, Dubai Land Department Statistics