What is a good rental yield in Dubai in 2026?

A gross yield of 7–10% is excellent for apartments in mid-market areas. 5–7% is competitive in prime locations where capital appreciation compensates. 4–5% in premium areas (Downtown, Palm) is acceptable if capital appreciation is your primary return driver. Net yield (after all expenses) typically runs 1.5–2 percentage points below gross — so a 7% gross property typically delivers 5–5.5% net yield.

How do I calculate rental yield on a Dubai property?

Gross yield = (Annual Rent ÷ Purchase Price) × 100. Example: AED 80,000/year rent on a AED 1,000,000 property = 8% gross yield. Net yield: subtract annual expenses from rent first. Annual expenses typically: service charges (AED 15,000–25,000), property management (5–8% of rent = AED 4,000–6,400), maintenance budget (1% of value = AED 10,000), vacancy buffer (1 month = AED 6,667). Net rent ≈ AED 38,000–45,000. Net yield ≈ 3.8–4.5%.

Is it worth furnishing a Dubai rental property?

Yes, in most cases. Furnished apartments in Dubai command 10–25% higher monthly rents than unfurnished equivalents. In high-demand areas (Marina, Downtown, JVC), furnished properties also have shorter vacancy periods. Initial furnishing cost: AED 20,000–50,000 for a standard 1-bedroom. The higher rent typically recovers furnishing cost within 6–18 months. For long-term annual leases: semi-furnished (appliances, fitted wardrobes, AC) is the UAE standard. Fully furnished (including sofa, beds, kitchen items) commands premium for short-term/holiday lets.

Can I do short-term rentals in Dubai for higher yield?

Yes — Dubai has a licensed short-term rental market. Licence required: Holiday Home Permit from Dubai Tourism (DTCM). Annual permit: AED 1,500–3,500 depending on property size. Licensed properties can be listed on Airbnb, Booking.com, and Dubai-specific platforms. Short-term yield potential: 10–20% gross in high-demand areas (Marina, Downtown, near attractions) during peak seasons. Operational burden is higher — requires property management or active management. Best areas for short-term: Dubai Marina, Downtown, Palm Jumeirah, JBR, near expo City.

Dubai Rental Yields by Area 2026: Where to Get the Best ROI

Key Takeaways

1Dubai average rental yield: 6.68% gross as of April 2026 — significantly higher than London (3–4%), Singapore (2–3%), and New York (4–5%)

2Apartments yield more than villas: 7.15% average for apartments vs 4.98% for villas in 2026

3Highest yielding areas: International City (8–9% gross), Dubai Investments Park (7–10% gross), JVC (7–9% gross)

4Net yield (after service charges, management fees, and vacancy) is typically 1.5–2 percentage points below gross yield

5Furnished apartments command 10–25% higher rents than unfurnished equivalents in the same building

Quick Answer: Dubai's average rental yield is 6.68% gross (April 2026). Highest yielding areas: International City (8–9%), JVC (7–9%), Dubai Investments Park (7–10%). Premium areas (Downtown, Palm) deliver 4.5–6% but stronger capital appreciation. Net yield runs 1.5–2% lower than gross after all expenses.

Dubai rental yield by area (2026 data)

Area	Gross Yield (Apt)	Price Range/sqft
International City	8–9%	AED 750–1,050
Dubai Investments Park	7–10%	AED 900–1,200
JVC	7–9%	AED 1,200–1,500
Discovery Gardens	7–9%	AED 900–1,200
Business Bay	6–7%	AED 1,800–2,200
Dubai Marina	6–7%	AED 2,200–2,800
Downtown Dubai	4.5–6%	AED 3,011+
Palm Jumeirah	4–6%	AED 3,500–4,000

Gross yield vs net yield: the real number

Gross yield is the number most agents quote. Net yield is what you actually keep after expenses. The gap is significant:

Gross yield: Annual Rent ÷ Purchase Price × 100
Net yield: (Annual Rent – Service Charges – Management Fee – Maintenance – Vacancy Allowance) ÷ Purchase Price × 100

Example: AED 1,000,000 apartment in JVC renting for AED 75,000/year:

Gross yield: 7.5%
Service charges: AED 18,000/year
Property management (6%): AED 4,500
Maintenance budget (1%): AED 10,000
Vacancy allowance (1 month): AED 6,250
Total expenses: AED 38,750
Net rent: AED 36,250
Net yield: 3.6%

The gap between 7.5% gross and 3.6% net is significant. Always calculate net yield before making an investment decision.

Furnished vs unfurnished: the yield uplift

Furnished properties in Dubai rent for 10–25% more than unfurnished equivalents:

Standard JVC 1-bedroom unfurnished: AED 55,000–65,000/year
Same unit furnished: AED 65,000–80,000/year
Furnishing cost for 1-bed: AED 20,000–40,000
Yield uplift recovers furnishing investment within 12–24 months, then adds pure margin

How Dubai compares globally

Dubai's 7.15% average apartment yield (2026) versus global alternatives:

London: 3–4% gross
Singapore: 2–3% gross
New York: 4–5% gross
Sydney: 3–4% gross
Dubai: 7.15% gross average (apartments)

Combined with no annual property tax and no capital gains tax, Dubai's effective after-tax yield is the highest of any major global city by a significant margin.

📌 Key Takeaways

Average Dubai yield: 6.68% gross (April 2026) — among highest globally
Highest yield areas: DIP (7–10%), International City (8–9%), JVC (7–9%)
Net yield runs 1.5–2 percentage points below gross after expenses
Apartments yield more than villas: 7.15% vs 4.98%
Furnished apartments command 10–25% premium rent — furnishing pays back within 1–2 years

Dubai Rental Yields by Area 2026: Where to Get the Best ROI

Key Takeaways

Dubai rental yield by area (2026 data)

Gross yield vs net yield: the real number

Furnished vs unfurnished: the yield uplift

How Dubai compares globally

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