Net rental yield
Also called: net yield
Net rental yield is the annual rent left after running costs, divided by the purchase price, which is what an owner actually earns before financing and tax.
The costs subtracted are typically the service charge, property management, maintenance and an allowance for periods with no tenant. On a Dubai apartment the service charge alone commonly moves a gross yield down by one to two percentage points, and it varies enough between buildings in the same community to change which one is the better buy.
Nobody can publish a reliable net yield for a whole area, because the costs are specific to the building and the owner. What can be published is the gross yield from the register and the service charge for the building, which together get you most of the way there.
The figures behind this
Related terms
Dubai Diligence is an independent property-data service built on official Dubai Land Department records. We are not a brokerage and no developer pays us. This is general information, not legal, financial or tax advice.
