---
title: "Net yield"
canonical: https://www.uaepropertyagents.com/glossary/net-yield
markdown: https://www.uaepropertyagents.com/md/glossary/net-yield.md
type: glossary-term
description: "Net yield is annual rent minus all running costs and empty periods, divided by the full cost of buying the property, shown as a percentage."
publisher: "UAE Property Agents (Omnia)"
language: en-GB
usage: "You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting."
---

# Net yield

> Net yield is annual rent minus all running costs and empty periods, divided by the full cost of buying the property, shown as a percentage.

Also known as: Net rental yield, Net return.

## What Net yield means for a buyer

Net yield measures what a let property actually earns for its owner:

**(annual rent − annual costs) ÷ total purchase cost × 100**

The costs to deduct in the UAE are [service charges](https://www.uaepropertyagents.com/glossary/service-charges), any [chiller](https://www.uaepropertyagents.com/glossary/chiller-fee) capacity charge the owner bears, management and letting fees, repairs, insurance and an allowance for [vacancy](https://www.uaepropertyagents.com/glossary/vacancy). The purchase cost should include the price plus the [4% transfer fee](https://www.uaepropertyagents.com/glossary/dld-transfer-fee), registration fees and any commission.

An illustration, with invented figures. A 1,000 sq ft flat costs AED 1,500,000 and lets for AED 90,000, a [gross yield](https://www.uaepropertyagents.com/glossary/gross-yield) of 6.0%. Deduct service charges of AED 15,000, management at 5% of rent (AED 4,500), AED 3,000 for repairs and insurance, and two weeks' vacancy (about AED 3,750). Net income is AED 63,750. Against a total cost of about AED 1,565,000, the net yield is 4.1%.

There is no annual property tax and no UAE income tax on an individual's rental income, which keeps the UAE's gap between gross and net narrower than in many countries. A UK resident, however, pays UK income tax on overseas rent, so the after-tax return is lower still; see [UK tax on Dubai property](https://www.uaepropertyagents.com/guides/uk-tax-on-dubai-property).

No standard definition exists. Some sources deduct only service charges and call the result net. When comparing figures, ask which costs were included, and whether a mortgage was. Net yield before financing is the fair basis for comparing properties.

## Related terms

- [Gross yield](https://www.uaepropertyagents.com/glossary/gross-yield): Gross yield is a property's annual rent divided by its price, shown as a percentage, before any costs, taxes or empty periods are deducted.
- [ROI](https://www.uaepropertyagents.com/glossary/roi): Return on investment is the total gain from a property, rental income plus any change in value, measured against the money the buyer actually put in.
- [Service charges](https://www.uaepropertyagents.com/glossary/service-charges): Service charges are the annual fees every owner pays, per square foot, towards running, maintaining and insuring the shared parts of a building or community.
- [Vacancy](https://www.uaepropertyagents.com/glossary/vacancy): Vacancy is the time a rental property stands empty and earns nothing, expressed as weeks per year or as a percentage of potential rent.

## In depth

- [Dubai rental yields by area and property type: gross, net and what 2026 changed](https://www.uaepropertyagents.com/guides/dubai-rental-yields)


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Source page: https://www.uaepropertyagents.com/glossary/net-yield. Published by UAE Property Agents, Omnia Capital Group. You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting.