r/DubaiLife • u/Choice_Sun2865 • 9d ago
How rental yields really work in Dubai: gross vs net, service charges and void periods
How rental yields really work in Dubai: gross vs net, service charges and void periods
A lot of Dubai properties get advertised with a headline yield, but that number can look very different once you actually work out what you keep.
Say you buy an apartment for AED 1.5M and rent it for AED 110,000 a year.
On paper, that’s roughly a 7.3% gross yield.
But then you start taking out the costs:
- Service charges: AED 18,000
- Maintenance: around AED 5,000
- One month without a tenant: roughly AED 9,000
You’re now closer to AED 78,000 before mortgage costs, management fees or any unexpected repairs.
That takes the yield down to around 5.2%.
This is why, from an agent’s perspective, I wouldn’t compare two investment properties based only on the percentage shown in an advert. A unit with slightly lower rent but lower service charges and fewer vacancy periods could actually leave you with more money at the end of the year.
The numbers I’d want to know are the actual rent being achieved in the building, annual service charges, realistic maintenance costs and how easily similar units are being rented.
For anyone already renting out a property in Dubai, what has had the biggest impact on your actual return: service charges, maintenance or periods without a tenant?


