Vacancy

Every let property is empty some of the time: between tenants, while it is being repainted, or at first letting after handover. Vacancy is that lost income. It can be stated as a period, such as three weeks a year, or as a rate, which is the same thing as a share of the year: three weeks is just under 6%. Occupancy is the reverse measure.

It matters because quoted yields usually assume the property is let for 52 weeks. A home advertised at a rent of AED 100,000 that is empty for one month in twelve earns AED 91,700, and the costs do not pause: service charges, cooling capacity charges and any mortgage continue while it is vacant.

What drives vacancy in the UAE:

• New supply. When several towers complete in the same district within months, many landlords seek tenants at once. First lettings in a newly handed-over building often take longest.
• Pricing. Dubai tenancies run for a year; an asking rent set too high can cost more in empty weeks than it gains.
• Type of letting. Short-term rentals are measured by nightly occupancy, which is seasonal and well below 100% even in good years.
• Condition and management. Slow repairs and poor marketing extend voids.

When modelling a purchase, allow for vacancy explicitly before calculating net yield. Two to four weeks a year is a cautious starting assumption for a long-term let, and more in the first year.