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Real Estate

Rental Yields in the UAE

Gross rental yields in Dubai stood at 7.2% for apartments and 5.0% for villas and townhouses in Q1 2026, according to Cavendish Maxwell. What you keep is lower: service charges, letting fees and empty months come off the rent.

Updated October 2026 · Figures checked 21 October 2026

Gross yield, Dubai apartments, Q1 2026
7.2%1
Gross yield, Dubai apartments, Q1 2026
Gross yield, Dubai villas and townhouses, Q1 2026
5.0%1
Gross yield, Dubai villas and townhouses, Q1 2026
Average Dubai gross yield, H1 2026 (Engel & Völkers)
6.6%2
Average Dubai gross yield, H1 2026 (Engel & Völkers)
New-lease apartment rents in Abu Dhabi, H1 2026
+17%3
New-lease apartment rents in Abu Dhabi, H1 2026

Rental Yields in the UAE

Dubai yields by property type

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%:

From gross to net
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

  1. Cavendish Maxwell: Dubai Residential Market Performance Q1 2026
  2. Engel & Völkers: UAE Residential Market Report H1 2026
  3. ADREC: Abu Dhabi Real Estate Market Report for H1 2026
  4. Dubai Land Department: Service Charge Index
  5. Dubai Land Department: Dubai's rental market in Q1 2026
  6. 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.

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