Dubai Property ROI Calculator

Average gross rental yields in Dubai range from 5% to 8%, depending on the area and property type. Affordable areas like JVC and International City offer 7-9% yields, while premium areas like Palm Jumeirah and Downtown Dubai offer 4-5.5%. Dubai consistently outperforms most global cities in rental returns.

Gross rental yield is calculated as annual rent divided by property price. Net rental yield deducts expenses including service charges, maintenance (typically 2% of rent), and vacancy allowance (typically 5%). Net yield gives you a more accurate picture of your actual returns.

Mortgage financing can significantly boost your cash-on-cash return through leverage. For example, putting 35% down on a property with 6% yield means your equity earns a higher return than the property yield itself. However, mortgage payments reduce monthly cash flow and total interest adds to costs.

For rental yield, affordable areas like JVC (7-8.5%), Discovery Gardens (7-9%), and International City (8-9%) lead. For total ROI including capital appreciation, premium areas like Dubai Marina, Business Bay, and JLT offer a balance of 5-7% yields plus strong price growth.

Key costs include: DLD transfer fee (4% of purchase price), agency fee (2%), admin/trustee fee (~AED 5,000), annual service charges (AED 10-30 per sqft), maintenance reserve (2% of rent), and vacancy allowance (5%). If financed, add mortgage registration (0.25% of loan amount).

Dubai remains attractive for property investment due to zero income tax on rental income, high rental yields compared to global cities, strong population growth, world-class infrastructure, and a transparent regulatory framework. Capital appreciation has averaged 5-8% annually in established areas over the past 3 years.