What is a good rental yield in Dubai?

Gross yields on Dubai residential property generally sit between 5% and 8%, depending on community, home type and whether the home is let long term or short term. Lower purchase prices in outer communities usually produce the higher gross figures; prime central districts produce lower yields and more of the return is expected from capital growth. A gross yield is not a return: service charges, management and vacancy typically take 1 to 2 percentage points off it.

How do you calculate rental yield?

Gross yield is annual rent divided by the purchase price, expressed as a percentage. A home bought for AED 1,500,000 and let for AED 100,000 a year has a gross yield of 6.7%. Net yield subtracts service charges, agency and management fees, maintenance, vacancy periods and any mortgage cost from the rent before dividing.

Are service charges deducted from these yields?

No. Every range on this page is a gross figure. DAMAC service charges vary by community and building and are quoted per sq ft per year, so the deduction depends on the specific unit. Ask for the service charge on the exact unit you are considering before you rely on a net number.

Can I rent out an off-plan DAMAC home before handover?

No. A home can only be let once it has been handed over and the title is registered, so an off-plan purchase produces no rent until its handover date. That is why handover year matters as much as yield when you compare projects.

Is rental income in Dubai taxed?

The UAE levies no personal income tax on rental income. Owners who are tax resident elsewhere are generally still taxable on that income in their home country, and the treatment depends on local rules and any double taxation treaty. Take advice in your own jurisdiction.

DAMAC Dubai

DAMAC rental yields in Dubai, by community

Gross rental yield is annual rent divided by the purchase price. It is the quickest way to compare one DAMAC community against another, and the easiest number to get wrong: a gross figure ignores service charges, management, maintenance and empty months, which together usually take 1 to 2 percentage points off it.

The ranges below describe gross yields observed in the open market for comparable homes in each community. They are ranges on purpose. We do not publish a single number, a forecast or a projected return, because rents and prices move and the right figure depends on the exact unit, floor, view and lease type.

An advisor sends the current rent comparables and the service charge for the unit you are considering, so you can see the net figure rather than the gross one.

Indicative gross yield ranges

Community	Gross yield	Prices from	Typical stock	What moves it
DAMAC Hills 2	6.5% to 8%	AED 538K	Townhouses, villas and apartments	The lowest entry prices of any DAMAC villa community and steady family tenant demand, which lifts the gross figure. Distance from the city keeps rents below central districts.
Dubai South	6.5% to 8%	On request	Apartments and townhouses	Low purchase prices against workforce rental demand from Al Maktoum airport and Expo City. Newer district, so rental evidence is still building.
Jebel Ali Freezone Extension	6% to 7.5%	AED 1.75M	Apartments	Employment-led tenant demand from the free zone and moderate entry prices.
Al Marjan Island	5.5% to 7.5%	AED 4.53M	Apartments	Holiday-let demand ahead of the integrated resort in Ras Al Khaimah; long-let evidence is still thin.
Business Bay	5.5% to 7%	AED 956K	Apartments	Central location with year-round corporate tenant demand; heavy supply keeps rent growth in check.
Dubai Media City	5.5% to 7%	AED 3.00M	Apartments	Close to Dubai Internet City and Media City offices, with a deep professional tenant pool.
Al Barsha	5.5% to 7%	AED 2.82M	Apartments	Established residential district close to Mall of the Emirates and Sheikh Zayed Road.
Dubai Maritime City	5.5% to 7%	AED 2.50M	Apartments	Waterfront location between Port Rashid and the Creek; rental evidence is limited while towers complete.
DAMAC Hills	5% to 6.5%	AED 862K	Apartments, townhouses and villas	Golf course community with high family occupancy; premium villa pricing caps the gross figure.
DAMAC Lagoons	5% to 6.5%	AED 734K	Townhouses and villas	Pre-handover phases have no rental track record yet; the range reflects comparable villa communities nearby.
DAMAC Riverside	5% to 6.5%	AED 795K	Townhouses and villas	New community; treat the range as provisional until the first phases hand over and lease.
DAMAC Sun City	5% to 6.5%	On request	Townhouses and villas	New community; the range is based on comparable villa stock until rental evidence builds.
Dubai Harbour	5% to 6.5%	AED 3.99M	Apartments	Waterfront and short-let demand can lift the gross figure, but management costs and vacancy are higher.
Downtown Dubai	5% to 6.5%	AED 3.15M	Apartments	Highest rents per sq ft, but purchase prices have risen faster than rents, which compresses the yield.
DAMAC Islands	4.5% to 6%	AED 3.33M	Villas and townhouses	Pre-handover luxury community; buyers typically pursue capital growth and end use rather than yield.
The Oasis	4% to 5.5%	On request	Villas	Luxury villa rents are lumpy and tenant pools are small; yield is not the main reason to buy here.

These are indicative gross yield ranges for comparable homes in the open market, not forecasts, projections or guarantees. Gross yield is annual rent divided by purchase price; it does not deduct service charges, agency or management fees, maintenance, vacancy or DLD costs, which together typically take 1 to 2 percentage points off the gross figure. Rents and prices move. Confirm any figure against current listings and your own numbers before you buy.

Gross yield and net yield

The gross calculation

Annual rent divided by purchase price. A home at AED 1,500,000 let for AED 100,000 a year is a 6.7% gross yield. Nothing is deducted.

What comes off it

Service charges quoted per sq ft per year, agency letting fee, management fee if you are not local, maintenance, and the empty weeks between tenants. Budget 1 to 2 percentage points in total, more on older or highly amenitised buildings.

Off-plan timing

An off-plan home earns nothing until handover. Compare the handover year alongside the yield, and check the payment plan so you know what is due before any rent starts.

Rental yield questions

What is a good rental yield in Dubai?: Gross yields on Dubai residential property generally sit between 5% and 8%, depending on community, home type and whether the home is let long term or short term. Lower purchase prices in outer communities usually produce the higher gross figures; prime central districts produce lower yields and more of the return is expected from capital growth. A gross yield is not a return: service charges, management and vacancy typically take 1 to 2 percentage points off it.
How do you calculate rental yield?: Gross yield is annual rent divided by the purchase price, expressed as a percentage. A home bought for AED 1,500,000 and let for AED 100,000 a year has a gross yield of 6.7%. Net yield subtracts service charges, agency and management fees, maintenance, vacancy periods and any mortgage cost from the rent before dividing.
Are service charges deducted from these yields?: No. Every range on this page is a gross figure. DAMAC service charges vary by community and building and are quoted per sq ft per year, so the deduction depends on the specific unit. Ask for the service charge on the exact unit you are considering before you rely on a net number.
Can I rent out an off-plan DAMAC home before handover?: No. A home can only be let once it has been handed over and the title is registered, so an off-plan purchase produces no rent until its handover date. That is why handover year matters as much as yield when you compare projects.
Is rental income in Dubai taxed?: The UAE levies no personal income tax on rental income. Owners who are tax resident elsewhere are generally still taxable on that income in their home country, and the treatment depends on local rules and any double taxation treaty. Take advice in your own jurisdiction.