Dubai Property ROI Calculator: Rental Yield for Long-Term Rentals

Use the calculator below to estimate rental yield, monthly cash flow, and total ROI for any Dubai buy-to-let property. It incorporates all key costs associated with buying property in Dubai, including upfront fees, ongoing expenses, and long-term leasing considerations – giving you a more accurate picture of your property’s potential returns.

Quick Summary: How to Calculate ROI on Rental Property in Dubai
Find the property price. Use the full purchase price, including any registration or transfer fees if you want a fully-loaded figure.
Calculate gross annual rent. Multiply expected monthly rent by 12.
Work out gross rental yield. Divide annual rental income by property price, then multiply by 100.
Subtract annual expenses. Include service charges, maintenance, property management fees, and vacancy allowance.
Calculate net rental yield. Divide (annual rental income minus annual expenses) by property price, then multiply by 100.
Factor in financing, if any. Add mortgage payments and upfront loan costs to your expense total.
Calculate annual cash flow. Subtract all expenses (including mortgage payments) from annual rental income.

This tool is built for long-term lease scenarios: a single tenancy, annual Ejari contract, predictable income. If you are planning an Airbnb or holiday-home strategy, use the short-term rental calculator instead.

Dubai Rental Yield Calculator (Long Term Lease)

Prefer Excel? [Download the free ROI calculator spreadsheet]

Formula recap:
Monthly Cash Flow = Monthly Rental Income − Monthly Expenses (including mortgage payment)
Annual Cash Flow = Monthly Cash Flow × 12
Gross Yield = (Annual Rent ÷ Property Price) × 100
Net Yield = ((Annual Rent − Expenses) ÷ Property Price) × 100

What is a Good ROI and Rental Yield in Dubai?

As of early 2026, the lowest-yield to highest-yield neighbourhoods ranges from 3% in prime areas to over 8% in value-focused districts.

For context on how Dubai compares globally: gross yields of 7.1% for apartments compare to 3–4% in London, 2–3% in Singapore, and 4–5% in New York.

For community-by-community comparisons: Compare Rental Yield by Dubai Neighbourhoods 2026

How to Use the Dubai Rental Yield Calculator

Step 1. Enter your purchase price and rent

Use the agreed sale price, not the asking price. For rent, use current comparable leases in your specific building, not just the area. Bayut and Property Finder are common places to check what similar units are asking. The building-level number matters more than the area average.

Input:

Property purchase price — use the agreed sale price, not asking price
Gross annual rental income — use current comparable rents, not historical ones

Step 2. Add acquisition costs

Total buying costs for a typical buyer in 2026 run 7–8% of purchase price. The main components:

DLD transfer fee: 4% of purchase price – while formally split 50/50 between buyer and seller, market practice sees buyers covering the full 4% in most resale transactions
Agency commission: 2% (plus 5% VAT) – standard for resale transactions
Conveyancing fees: AED 5,000–15,000 – legal and administrative charges to legally transfer property ownership from a seller to a buyer

For mortgage buyers, add: 0.25% of the loan amount as a DLD mortgage registration fee, plus a fixed admin charge of approximately AED 290. Banks also require an independent property valuation, which typically costs AED 2,500–3,500 plus VAT.

Step 3. Add ongoing annual expenses

These costs directly reduce your net yield. Underestimating them is the most common modelling error:

Service charges — vary by building. Downtown Dubai charges AED 25–35 per sqft annually. JVC charges AED 12–18 per sqft. Check your building’s approved rate on RERA before finalising assumptions.
Property management fee — 5–8% of annual rent if you use a management company
Maintenance reserve — budget 1–2% of property value annually for older buildings; less for new builds

Step 4. Choose cash or mortgage purchase

Cash: Set the mortgage fields to zero. The calculator shows gross yield, net yield, and net cash flow.

Mortgage: Enter your down payment, loan period, and annual interest. The calculator adds cash-on-cash return as an output — this is the metric that matters most for leveraged investors, since it measures return on the cash you actually deploy.

Mortgage expenses are the second-largest yield reducer after service charges for leveraged investors.

Step 5. Stress-test your assumptions

Change one variable at a time and see whether the property still works:

Raise service charges by 10% — industry forecasts indicate average service charges will increase 5–10% in 2025–2026, driven by insurance premium increases and new facade inspection requirements
Drop rental income by 10% — does the property still cash-flow positively?

A property that only works under optimistic assumptions is a risk, not an investment.

How to read your results

Net yield 4.5–5.5% — typical for a well-managed apartment in a mid-market area. Solid for income-focused investors.

Negative cash flow — the property costs more to hold each month than it generates in rent. This may still work as a capital appreciation play, but model it explicitly rather than hoping it resolves itself.

Negative cash flow with mortgage — leverage is working against you. The financing cost exceeds the net income the property generates on your invested cash.

What the calculator does not include

The outputs are estimates, not guarantees. Three factors sit outside the model:

Capital appreciation — the calculator measures income return only. Price growth in Dubai can be dyanamic; do not build it into yield assumptions.
Tax position in your home country — Dubai has no personal income tax on rental income, but your home jurisdiction may tax foreign rental earnings. Verify with a tax advisor.
Regulatory changes — tenancy law, service charge, and mortgage requirements change. For current rules, check RERA’s official guidance directly.

Rental yield vs ROI: what is the difference?

Rental yield is a measure of rental income relative to property value. ROI is the broader question of total return relative to what you invested. For a cash purchase with no price change, ROI and net yield on all-in cost are close. Once you add a mortgage or assume the price moves, they diverge, and that is when the distinction matters.

Disclaimer: Home It Better is not a licensed financial advisor or real estate agent. This tool is for informational and analytical purposes only. Consult a licensed professional before making investment decisions.

FAQ: Dubai Rental Yield Calculator

Q: How do you calculate ROI on a property in Dubai?

Divide your annual return by the cash you invested. For a rental, start with net operating income (annual rent minus service charges, management, maintenance and vacancy), then divide by the purchase price for net yield, or by your actual cash invested for cash-on-cash return if you have a mortgage. The calculator above runs these automatically.

Q: What is a good rental yield in Dubai in 2026?

For apartments, 6.5%+ gross yields outperform the citywide average. Strong mid-market areas like JVC and Dubai Silicon Oasis typically deliver 7–9% gross.

Prime areas like Downtown Dubai and Palm Jumeirah run 4.5–6% gross but attract tenants who stay longer and require less management.

Net yield is usually 1.5–2% points below gross, depending on service charges and management costs.

Q: What is the difference between rental yield and ROI?

Rental yield measures rental income relative to the property’s price. ROI is a broader measure of total return relative to what you invested, and it can include mortgage effects and price changes. For a cash purchase with no price change, they are close, but they diverge with mortgage.

Q: What is cash-on-cash return?

It is annual cash flow after all costs and mortgage payments, divided by the cash you actually put in (deposit plus acquisition costs). It shows how hard your own money is working.

Q: What costs do I need to include in a Dubai ROI calculation?

Acquisition costs: 4% DLD transfer fee, 2% agency commission, AED 4,000–5,000 trustee fee, and mortgage registration fees if financing.

Ongoing costs: service charges, property management (5–8% of rent), maintenance reserves, and vacancy allowance. Missing any of these will overstate your actual return.

Q: Is long-term or short-term rental better ROI in Dubai?

Short-term rental can generate higher gross income sometimes 30–50% more, but carries higher operating costs, active management requirements, and occupancy risk. Long-term lease delivers predictable income and lower costs.

The right answer depends on your property, location, and how hands-on you want to be. Run both calculators side by side before deciding.

Q: Can I use this calculator to compare multiple properties?

Yes. That’s one of the most effective ways to use it. Run each property through the same inputs, using verified rent comparables and actual service charge rates for each building.

The properties that look similar on price often separate significantly once costs are correctly modelled.