---
title: "Dubai rental yields by area and property type: gross, net and what 2026 changed"
canonical: https://www.uaepropertyagents.com/guides/dubai-rental-yields
markdown: https://www.uaepropertyagents.com/md/guides/dubai-rental-yields.md
type: guide
description: "Sourced, dated gross yields for Dubai areas from DLD records, Property Finder, Bayut and Betterhomes, plus how to work out the net yield you will actually keep."
published: 2026-11-12
updated: 2026-11-12
sources: 17
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."
---

# Dubai rental yields by area and property type: gross, net and what 2026 changed

> Sourced, dated gross yields for Dubai areas from DLD records, Property Finder, Bayut and Betterhomes, plus how to work out the net yield you will actually keep.

By Omnia's editorial team. Investing. Published 12 November 2026, last reviewed 12 November 2026.

## The short version

- Across all Dubai homes the average gross yield was 5.68% in the 12 months to 11 November 2026, on Property Finder's analysis of Dubai Land Department records.
- Mid-priced apartment districts show 7% to 8.5% gross; prime apartments about 4.5% to 6%; most villa communities 3% to 6%.
- Net yield is what matters: in our worked example a 7.2% gross yield falls to 4.8% after service charges, vacancy, management and buying costs.
- New-lease rents have been falling since spring 2026 while renewals edged up, so base your numbers on recently signed contracts, not asking rents.
- Holiday lets need a Department of Economy and Tourism permit for each unit and carry occupancy risk that long lets do not.

Gross rental yields in Dubai average a little under 6% across all homes: Property Finder's analysis of Dubai Land Department (DLD) records shows 5.68% for the 12 months to 11 November 2026. Apartments in mid-priced districts such as Jumeirah Village Circle and Dubai Silicon Oasis sit at 7% to 8.5%, prime apartments at about 4.5% to 6%, and most villa communities between 3% and 6%. Net yield, after service charges, vacancy, management and buying costs, is materially lower: in the worked example below a 7.2% gross yield becomes 4.8% net. New-lease rents have been falling since spring 2026, so treat every figure here as a dated snapshot, not a promise.

## How to calculate gross and net rental yield

**Gross yield** = annual rent ÷ purchase price × 100.

**Net yield** = (rent actually collected − annual running costs) ÷ (purchase price + buying costs) × 100.

Gross yield is the figure portals and agents quote. It ignores every cost of owning the property. Net yield is the one to compare with a savings rate, a UK buy-to-let or a bond. Neither includes tax in your home country or any change in the property's value.

### Worked example: a one-bedroom apartment in Jumeirah Village Circle

Betterhomes' medians for Jumeirah Village Circle in September 2026 were AED 1,259 per sq ft to buy and AED 91 per sq ft a year to rent. For a 750 sq ft one-bedroom apartment bought on the resale market that gives:

| Item | Amount (AED) | Basis |
|---|---|---|
| Purchase price | 944,250 | 750 sq ft × AED 1,259 (Betterhomes median, September 2026) |
| Annual rent | 68,250 | 750 sq ft × AED 91 (Betterhomes median, September 2026) |
| **Gross yield** | **7.2%** | 68,250 ÷ 944,250 |
| Vacancy | −3,412 | Our assumption: 5% of the year, about 18 days |
| Service charge | −11,250 | Our assumption: AED 15 per sq ft. Look up the real figure for the building |
| Management | −3,242 | Our assumption: 5% of rent collected |
| Maintenance and insurance | −2,000 | Our assumption |
| **Net income** | **48,346** | |
| Buying costs | 62,009 | 4% DLD fee, trustee fee of AED 4,200 plus VAT, 2% agent commission plus VAT (rates as listed by Betterhomes, October 2026) |
| **Net yield** | **4.8%** | 48,346 ÷ (944,250 + 62,009) |

The assumptions are ours and are there to show the mechanics. Change any of them in the [rental yield calculator](https://www.uaepropertyagents.com/tools/rental-yield-calculator). A building with a service charge of AED 25 per sq ft instead of AED 15 would cut the net yield in this example to about 4.1%.

## Dubai rental yields by area

The table sets three sources side by side. They measure different things, which is why they do not agree.

| Area | Property Finder gross yield, all homes (DLD sales and rental records, 12 months to 11 Nov 2026) | Property Finder average price per sq ft (same period) | Bayut gross yield (asking prices and rents, Q3 2026) | Betterhomes gross yield (median rent ÷ median price, Sept 2026) |
|---|---|---|---|---|
| Dubai Silicon Oasis | 8.52% | AED 1,245 | 7.9% apartments | n/a |
| International City | 7.98% | AED 884 | n/a | n/a |
| Jumeirah Village Circle | 7.51% | AED 1,516 | 7.1% apartments | 7.2% apartments |
| Business Bay | 6.85% | AED 2,448 | 6.0% apartments | n/a |
| Dubai Hills Estate | 6.09% | AED 2,400 | 6.0% apartments, 4.2% villas | 6.1% apartments |
| Palm Jumeirah | 6.08% | AED 3,966 | 4.4% apartments, 3.5% villas | n/a |
| Dubai Marina | 5.88% | AED 2,632 | 5.6% apartments | 5.7% apartments |
| Downtown Dubai | 4.88% | AED 3,161 | 5.1% apartments | n/a |
| Arabian Ranches | 4.44% | AED 1,424 | 3.8% villas | n/a |
| **All Dubai** | **5.68%** | **AED 1,894** | n/a | n/a |

Other figures from the same reports: Bayut's Q3 2026 report put Dubai Investments Park at 9.5% and Discovery Gardens at 8.5% for apartments, the highest in its affordable segment, and DAMAC Lagoons and DAMAC Hills 2 at 5.7% for villas. Betterhomes' September 2026 medians imply 4.8% for Tilal Al Ghaf villas, 4.1% for The Springs and 3.0% for Jumeirah Islands.

### Why the sources disagree

- **Property Finder** uses registered sale prices and registered tenancy contracts from the DLD. It reflects what was paid, but the homes sold and the homes let are different sets, and in areas with heavy off-plan sales the prices include new stock that is not yet rentable.
- **Bayut** uses advertised prices and advertised rents on its own portal. Asking figures run ahead of or behind signed deals depending on the market.
- **Betterhomes** divides one agency's median rent per sq ft by its median sale price per sq ft.

Palm Jumeirah shows the problem. Property Finder's all-homes figure is 6.08%; Bayut's is 4.4% for apartments and 3.5% for villas. Use area tables to rank districts, then test a specific unit against signed rents in the same building.

## Rental yield by property type and size

Smaller homes yield more. Property Finder figures compiled by Dubai Fast Living (published 13 October 2026) show:

| Home type | Gross yield, all Dubai |
|---|---|
| Studio apartment | 7.3% |
| One-bedroom apartment | 6.2% |
| Two-bedroom apartment | 5.3% |
| Three-bedroom apartment | 4.8% |
| Three-bedroom villa | 4.9% |
| Four-bedroom villa | 4.3% |

The same compilation, covering the three months to 11 October 2026, gives 6.2% for apartments and 4.2% for villas and townhouses overall. Property Monitor data published by Engel & Völkers for August 2026 gives 6.7% for apartments, 5.1% for townhouses and 4.5% for villas. Knight Frank's Destination Dubai report (May 2025) gave ranges of 5% to 7% for apartments and 4.5% to 6% for villas and townhouses.

Villas show lower yields than apartments in every source above. Studios show the highest yields, and apartments face the most competing supply: about nine in ten homes scheduled for handover in 2027 are apartments, according to DLD planned-handover data cited by Betterhomes (October 2026).

## What reduces net yield

- **Service charges.** The annual fee for running the building and its common areas, charged per square foot and approved by Dubai's Real Estate Regulatory Agency. It is usually the largest running cost and varies widely between buildings. Check the approved figure for any project and year in the DLD's free [Service Charge Index](https://dubailand.gov.ae/en/eservices/service-charge-index-overview/) before you buy. Our [service charges guide](https://www.uaepropertyagents.com/guides/service-charges-in-dubai) explains what is included.
- **Vacancy.** Betterhomes reports that a long let typically takes one to three weeks to agree, or four to six weeks where more marketing is needed, and that one empty month costs about 8.3% of the year's rent.
- **Management.** An overseas owner will usually pay an agent to find tenants, register the tenancy and handle repairs. Fees vary by service level; get them in writing.
- **Furnishing and maintenance.** Air-conditioning servicing, repainting between tenancies and appliance replacement fall to the landlord. Furnished lets need a furniture budget and periodic renewal.
- **Buying costs.** The 4% DLD transfer fee, plus trustee and agent fees on a resale, raise the amount you have invested. A yield calculated on price alone overstates the return. See [Dubai property buying costs](https://www.uaepropertyagents.com/guides/dubai-property-buying-costs).
- **Tax at home.** The UAE has no personal income tax, but a UK resident pays UK income tax on the rent. See [UK tax on Dubai property](https://www.uaepropertyagents.com/guides/uk-tax-on-dubai-property).
- **Time before the first rent.** An off-plan purchase earns nothing until handover.

Every area figure above, with its period and link, is also in our [rental yields by area](https://www.uaepropertyagents.com/data/area-yields) table, and the [area guide to where to invest in Dubai](https://www.uaepropertyagents.com/guides/best-areas-to-invest-in-dubai) groups the same figures by investor goal.

## Short-term lets vs long lets in Dubai

**Long lets** are 12-month tenancies registered in the Ejari system. Rent is often paid in a small number of post-dated cheques: in Betterhomes' Q3 2026 lettings, 33% of deals were on four cheques and 28% on one. A landlord can raise the rent at renewal only by the band allowed under Decree No. 43 of 2013, which depends on how far the rent sits below the DLD's rental index, and only with 90 days' written notice.

**Short-term (holiday) lets** are regulated by the Department of Economy and Tourism (DET) under Decree No. 41 of 2013. According to Bayut's guide (updated 20 October 2026):

- The owner registers with DET (AED 1,500 plus AED 20 in government fees) and obtains a permit for each unit: AED 370 for a studio or one-bedroom, AED 670 for two bedrooms, AED 970 for three and AED 1,270 for four or more.
- An individual can hold permits for up to eight properties. More requires a trade licence and registration as a professional operator.
- The whole unit must be let, every guest registered, and a Tourism Dirham fee of AED 10 a night (standard) or AED 15 (deluxe) per room collected and paid over monthly.
- Units in hotel-apartment buildings cannot be operated as holiday homes.

The Decree allows fines of AED 200 to AED 20,000 for breaches. DET also recommends telling the building's management before you start.

A short let may gross more than a long let when occupancy is high, but the income moves with tourism. CBRE reported that Dubai hotel occupancy fell to about 23% in the week ending 14 March 2026, after the regional conflict began, and expected some short-term rental units to switch to long lets, adding to long-let supply. Operator fees, furnishing, utilities and cleaning also come out of short-let income. Compare the two on net income, not nightly rate.

The full permit process, the fee schedule and a worked comparison of a short let with a long let are in our [holiday home rental guide](https://www.uaepropertyagents.com/guides/holiday-home-rental-dubai); the landlord's side of a long let, from Ejari to notice periods, is in [renting out property in Dubai](https://www.uaepropertyagents.com/guides/renting-out-property-in-dubai).

## Are Dubai rents rising or falling in 2026?

New-lease rents peaked in February 2026 on UBP's reading and have eased since. Renewals, which are index-linked and started lower, have continued to rise slowly.

| Source | Period | Finding |
|---|---|---|
| CBRE | Q1 2026 | Average rents up about 4.1% year on year; apartments up 4.9%, villas flat |
| CBRE (via Khaleej Times) | Q2 2026 | Average rents down 2.6% year on year and 6.2% quarter on quarter |
| UBP (via Khaleej Times) | To May 2026 | New-contract rents down 4.8% from their February 2026 peak; renewals up 3.1% |
| UBS | Q2 2026 | Inflation-adjusted rents down 4% over the year |
| Betterhomes | June to September 2026 | Median apartment rents down 3.8%; villas and townhouses down 2.3% |
| Savills | Q3 2026 | About 181,900 rental transactions, up 16% on Q2; rents in selected communities showing early signs of stabilising |
| Property Finder (Ejari contracts) | 12 months to November 2026 | Average rent AED 89,400; new leases average AED 102,800 and are down 2.9%; renewals average AED 80,400 and are up 4.9% |

Tenant demand has held up: Betterhomes recorded its highest ever leasing enquiries in Q3 2026. The pressure is on the supply side, with DLD data cited by Betterhomes showing 136,815 homes scheduled for handover in 2027. Scheduled handovers often slip, but a buyer modelling rent for a 2027 or 2028 completion should test a lower rent than today's, not a higher one. The wider picture is in [Is Dubai property a good investment?](https://www.uaepropertyagents.com/guides/is-dubai-property-a-good-investment).

## How to use yield figures when choosing a property

1. Rank areas with the tables above, then drop to building level. Ask for the last three registered tenancy contracts in the building for the same unit type.
2. Look up the building's approved service charge and work out the net yield on the price plus buying costs.
3. Check how many similar homes are due to complete nearby in the next two years.
4. Treat any developer-advertised rental guarantee as marketing until you have read who pays it, for how long, and what the unit would let for without it.
5. Run the numbers at a rent 10% lower and with six weeks' vacancy. If the investment only works on today's asking rent, it does not work.

## Calculator

Run your own numbers with the [rental yield calculator](https://www.uaepropertyagents.com/tools/rental-yield-calculator).

## Questions and answers

### What is the average rental yield in Dubai in 2026?

Property Finder's analysis of Dubai Land Department sale and rental records puts the average gross yield at 5.68% for all homes in the 12 months to 11 November 2026. Property Monitor data published by Engel & Völkers for August 2026 gives 6.3% overall, with apartments at 6.7%, townhouses at 5.1% and villas at 4.5%. The figures differ because each source uses a different sample and period. All are gross, before any costs.

### Which areas of Dubai have the highest rental yields?

Lower-priced apartment districts. In Property Finder's 12-month data to 11 November 2026, Dubai Silicon Oasis showed 8.52%, International City 7.98% and Jumeirah Village Circle 7.51% gross. Bayut's Q3 2026 report, based on asking prices and rents, put Dubai Investments Park at 9.5% and Discovery Gardens at 8.5%. Higher yields in these areas go with lower prices per square foot and, in several of them, heavy off-plan sales, which means more new homes competing for tenants later.

### What is the difference between gross and net rental yield?

Gross yield is one year's rent divided by the purchase price. Net yield deducts the costs of owning and letting (service charges, vacant weeks, management fees, maintenance and insurance) from the rent, and divides by the price plus buying costs such as the 4% Dubai Land Department fee. In the worked example in this guide a 7.2% gross yield becomes 4.8% net; the size of the gap depends mainly on the building's service charge.

### Is rental income from Dubai property tax free?

The UAE does not levy personal income tax, so there is no UAE tax on an individual's rent (PwC Worldwide Tax Summaries, reviewed 9 September 2026). Your home country may still tax it. A UK tax resident pays UK income tax on Dubai rent and reports it through Self Assessment. Read our guide to UK tax on Dubai property before relying on a yield figure.

### Do I need a licence to let a Dubai apartment on Airbnb?

Yes. Short-term letting is regulated by Dubai's Department of Economy and Tourism under Decree No. 41 of 2013. Each unit needs a holiday-home permit, guests must be registered, and a Tourism Dirham fee is collected per night. An individual owner can hold permits for up to eight properties, according to Bayut's guide updated on 20 October 2026; beyond that a licensed operator is required. Units in hotel-apartment buildings cannot be run as holiday homes.

### Do off-plan properties earn the yields quoted for an area?

Not until they are built. Published yields are calculated on completed homes that are already let. An off-plan buyer earns no rent before handover, and the rent achievable at handover depends on how many similar homes complete at the same time. Area averages can also reflect older, cheaper buildings rather than the new stock being sold.

## Sources

Facts on this page were last checked against these sources on 12 November 2026.

- [Property Finder: Dubai sales transactions (Dubai Land Department data), viewed 12 November 2026](https://www.propertyfinder.ae/en/transactions/buy/dubai)
- [Property Finder: Dubai rental transactions (Ejari data), viewed 12 November 2026](https://www.propertyfinder.ae/en/transactions/rent/dubai)
- [Bayut: Q3 2026 Dubai property sales report, updated 11 November 2026](https://www.bayut.com/mybayut/dubai-sales-market-report-q3-2026/)
- [Betterhomes: Dubai rental market 2026 for landlords, 2 November 2026](https://www.bhomes.com/en/blog/market-reports/dubai-rental-market-2026-for-landlords)
- [Betterhomes: Is now a good time to buy property in Dubai? (Q3 2026 data and buying costs), 27 October 2026](https://www.bhomes.com/en/blog/market-reports/is-2026-a-good-time-to-buy-property-in-dubai)
- [Engel & Völkers: Dubai housing market mid-year review (Property Monitor yield data), updated 9 September 2026](https://www.engelvoelkers.com/ae/en/resources/dubai-housing-market)
- [Dubai Fast Living: Dubai rental yield by area (Property Finder data), 13 October 2026](https://dubaifastliving.com/dubai-rental-yield-by-area/)
- [Knight Frank: Destination Dubai 2025, 21 May 2025](https://www.knightfrank.ae/research/reports/destination-series/destination-dubai)
- [CBRE: UAE Real Estate Market Review Q1 2026, April 2026](https://mediaassets.cbre.com/-/media/project/cbre/shared-site/menat/uae/articles/uaeq12026report/cbre---uae-real-estate-market-review-q1-2026.pdf?rev=b6d8a133016e4b3b80f97be09e90b310)
- [Khaleej Times: CBRE and UBP on Dubai residential in Q2 2026, 29 July 2026](https://www.khaleejtimes.com/business/property/dubai-residential-real-estate-shows-resilience-amid-quieter-market)
- [Savills: Dubai Residential Market in Minutes Q3 2026 (press release via Zawya)](https://www.zawya.com/en/press-release/research-studies/dubai-residential-market-enters-period-of-stabilisation-as-buyer-selectivity-increases-says-savills-1598687)
- [The National: UBS Global Real Estate Bubble Index on Dubai, 24 September 2026](https://www.thenationalnews.com/business/property/2026/09/24/buy-dubai-property-bubble-strong-rents-demand-ubs-report/)
- [Dubai Land Department: Service Charge Index](https://dubailand.gov.ae/en/eservices/service-charge-index-overview/)
- [Dubai Decree No. 41 of 2013 regulating the leasing of holiday homes](https://dlp.dubai.gov.ae/Legislation%20Reference/2013/Decree%20No.%20(41)%20of%202013.html)
- [Bayut: Short-term rental contracts in Dubai, updated 20 October 2026](https://www.bayut.com/mybayut/guide-short-term-rentals-dubai/)
- [Bayut: Rent increase rules in Dubai, updated 16 October 2026](https://www.bayut.com/mybayut/rent-increase-rules-dubai/)
- [PwC Worldwide Tax Summaries: UAE, taxes on personal income, reviewed 9 September 2026](https://taxsummaries.pwc.com/united-arab-emirates/individual/taxes-on-personal-income)

---

Source page: https://www.uaepropertyagents.com/guides/dubai-rental-yields. 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.