Rental Yields in the UAE
Dubai yields by property type
| Property type | Cavendish Maxwell, Q1 2026 | Engel & Völkers, H1 2026 |
|---|---|---|
| Apartments | 7.2% | 6.9% |
| Townhouses | 5.0% (villas and townhouses) | 5.1% |
| Villas | 5.0% (villas and townhouses) | 4.5% |
| All homes | 6.6% |
Source: Cavendish Maxwell: Dubai Residential Market Performance Q1 2026; Engel & Völkers: UAE Residential Market Report H1 20261,2
In Q1 2026 the highest apartment yields were in International City Phase 2, International City and Downtown Jebel Ali; for villas and townhouses they were in Al Barari, Dubai Industrial City and Damac Hills 2.1
From gross to net
Gross yield is the annual rent divided by the price. Net yield takes off the running costs. For a worked example, take an apartment bought for AED 1,500,000 and let for AED 105,000 a year, a gross yield of 7.0%:
| Item | AED a year |
|---|---|
| Rent | 105,000 |
| Service charge, example 900 sq ft at AED 18 per sq ft | -16,200 |
| One month empty between tenants | -8,750 |
| Letting and management, example 5% of rent | -5,250 |
| Maintenance and insurance, example | -3,000 |
| Net income | 71,800 |
| Net yield on the price | 4.8% |
The rates in this example are assumptions for illustration, not market data. Look up the approved service charge for the actual building in the Land Department's Service Charge Index, and remember that the 4% transfer fee and agency commission raise your real cost of entry.4
Rents and rules that affect your return
- Dubai average residential rents reached AED 76.1 per sq ft a year in Q1 2026, up 10.2% year on year.
- Dubai registered 118,385 new and 135,607 renewed tenancy contracts in Q1 2026, worth AED 32.2 billion in total.
- Rent increases on renewal in Dubai are capped by Decree No. 43 of 2013 and the RERA rental index.
- In Abu Dhabi, new-lease rents rose 17% for apartments and 9% for villas in H1 2026, and rental units make up 69% of occupied homes in Abu Dhabi Region.
Source: Cavendish Maxwell: Dubai Residential Market Performance Q1 2026; Dubai Land Department: Dubai's rental market in Q1 2026; Dubai Legislation: Decree No. 43 of 2013 Determining Rent Increase for Real Property; ADREC: Abu Dhabi Real Estate Market Report for H1 20261,5,6,3
Frequently Asked Questions
What rental yield can I expect in Dubai?
Gross yields averaged 7.2% for apartments and 5.0% for villas and townhouses in Q1 2026, according to Cavendish Maxwell. Net yields are lower after service charges, fees and vacancy.
Sources
- Cavendish Maxwell: Dubai Residential Market Performance Q1 2026
- Engel & Völkers: UAE Residential Market Report H1 2026
- ADREC: Abu Dhabi Real Estate Market Report for H1 2026
- Dubai Land Department: Service Charge Index
- Dubai Land Department: Dubai's rental market in Q1 2026
- Dubai Legislation: Decree No. 43 of 2013 Determining Rent Increase for Real Property
Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.