Highest Rental Yield in Dubai: Where to Find the Best ROI Properties
Looking for the highest rental yield in Dubai? In this guide, we break down how to find top-performing Dubai properties for return on investment (ROI) — with data-backed insights, community comparisons, and a free ROI calculator to help you invest smarter.
What Is Rental Yield in Dubai?
Rental yield is how much money you make from rent each year compared to what you paid for the property, shown as a percentage. It’s a quick way to see if a property investment is worth it or not.
Gross Rental Yield = (Annual Rent / Property Price) x 100
It’s one of the most important numbers to look at when you’re thinking about buying an investment property since it tells you upfront how much return you can expect from your rental income.
Dubai rental yields vary significantly by community, property type, and tenant demand. Let’s explore how to maximize returns.
6 Key Factors That Will Impact Your Dubai Rental Yield
To identify a great investment property in Dubai, focus on the following factors:
1. Location
As an investor, you will need to find area that aren’t just good but highly desirable.
According to fäm properties, here are the top 10 best areas to invest in Dubai (as of August 2025).
| Area | Sold Properties | Average Price (AED) |
|---|---|---|
| Jumeirah Village Circle | 10,558 | AED 1M |
| Business Bay | 7,451 | AED 1.6M |
| Dubai South | 5,776 | AED 1.7M |
| Dubai Marina | 5,445 | AED 2.3M |
| Al Furjan | 4,195 | AED 1.2M |
| Jumeriah Golf Estate | 3,765 | AED 704K |
| Motor City | 3,415 | AED 1.2M |
| Dubai Hills Estate | 3,118 | AED 2.5M |
| Jumeirah Lakes Towers | 2,949 | AED 1.9M |
| Dubai Investment Park | 2,897 | AED 2M |
Success through property investing can be found in any location, but only if you understand that location!
Tip: Take a look at these top 10 communities, learn what lifestyle amenities they offer, and research the type of tenants these communities attract.
2. Local Businesses Around You
When searching for a rental property, keep an eye out for what’s nearby.
Proximity to daily essentials (schools, parks, supermarkets, workplaces) plays a major role in tenant preference. For short-term rentals, access to beach or tourist spots is key.
A tenant is just like us.
They want to grab a quick coffee, go for a bike ride in the park, and get to the grocery store easily. Invest in communities where you think tenants want to live.
Tip: Take a look at where the big brands (i.e. Starbucks and Waitrose) are investing in. Large businesses like these tend to spend a lot of time and money researching before investing in a new location. If Starbucks and Waitrose are doing well in an area, it might be a potential location for you to consider too.
3. Property Type
According to Property Finder’s findings:
- Apartments typically provide stronger rental yields than townhouses and villas due to Dubai’s largely transient, low to mid-income population with a budget geared toward smaller, affordable homes.
- Opt for smaller-sized apartments (studio and 1-bedroom) in affordable communities with established infrastructure, near to transport and essential amenities such as education and healthcare.
- Resale of smaller units is faster and offers a better value compared to larger sized properties, mainly because a major segment of Dubai’s expat population can afford to purchase these when the investor wants to release equity.
Keep in mind: Functionality, facilities, and amenities offered by each type of property will also affect its demand as a rental property.
4. Property Condition
New or old? Off plan property or resale?
Generally speaking, older properties usually require more maintenance
Newer property will have fewer repairs you need to deal with.
If a rental property requires more repairs, can you be handle repair yourself, or will you need to hire help? Also think about distance. If the property is far from you, factor in extra costs for management and repairs since you can’t easily handle issues yourself.
And, to get a higher rental yield on an older property, you will factor in renovation cost to improve the rental property.
5. Occupancy Rate
Occupancy rate is the percentage of a year that a property will be occupied. Ideally, you want the occupancy rate of a property to be 100%!
Agents and property managers should be able to provide you with an idea if it’s low or high.
A high occupancy rate is very crucial, especially for short-term rentals, as having a property sit empty is a high expense for any landlord.
If you want a more stable and guaranteed occupancy rate, look for properties that are already leased out, and go for the long-term rental route as opposed to doing short-term rental. (More on Long-Term Rental vs Short-Term Rental)
6. RERA Service Charge & Associated Fees
Service Charges can range anywhere between AED 2 to AED 30 per sq.ft depending on property type, size, and community location.
Some communities have surprisingly low Service Charge (Dubai Land, for example), while other areas have exceptionally high rates (such as Palm Jumeriah). It’s important to include this fee when evaluating a property as it will affect your rental yield.
Service Charges by the property can be found directly on DLD’s website, or just ask the agent who’s representing the property. Oftentimes, it’s shown in the listing.
Note:
- For short-term rental, you will also need a holiday home license from DTCM. Registration fee is AED 1,520, and the annual permit ranges from AED 370 to AED 1,270 depending on property size.
- See post here for other associated fees when buying a property.
How to Find Highest Rental Yield in Dubai
Step 1: Make a Community Evaluation
Alright, we talked about the top 10 best areas to invest in Dubai (as of August 2025).
| Area | Sold Properties | Average Price (AED) |
|---|---|---|
| Jumeirah Village Circle | 10,558 | AED 1M |
| Business Bay | 7,451 | AED 1.6M |
| Dubai South | 5,776 | AED 1.7M |
| Dubai Marina | 5,445 | AED 2.3M |
| Al Furjan | 4,195 | AED 1.2M |
| Jumeriah Golf Estate | 3,765 | AED 704K |
| Motor City | 3,415 | AED 1.2M |
| Dubai Hills Estate | 3,118 | AED 2.5M |
| Jumeirah Lakes Towers | 2,949 | AED 1.9M |
| Dubai Investment Park | 2,897 | AED 2M |
Next, to get an idea of the rental yield in the top 10 areas, we have extracted the average rental gross yield from Property Finder.
Keep in mind this is a ‘gross yield’ which means, community service charges and all other associated costs have not been factored in.
Average Dubai Rental Yield in Top 10 Best Area to Invest in Dubai
| Rank | Community | Gross Rental Gross* |
| 1. | Jumeirah Village Circle | 7.83% |
| 2. | Business Bay | 7.40% |
| 3. | Dubai South | 7.57% |
| 4. | Dubai Marina | 6.37% |
| 5. | Al Furjan | 7.75% |
| 6. | Jumeriah Golf Estate | 7.16% |
| 7. | Motor City | 7.47% |
| 8. | Dubai Hills Estate | 6.30% |
| 9. | Jumeirah Lake Towers | 7.42% |
| 10. | Dubai Investment Park | 8.72% |
*Property Finder: Rental gross yield = Average annual rental price / Average sale ‘transaction’ price.
Step 2: Search & Compare Similar Rental Properties
As an investor, plan on investing in an area you are familiar with or near you. It will help you become an expert in your chosen area, and compare deals nearby, easier.
Once you have narrowed down an area (or two) you are comfortable with, start looking for properties on property websites that fit your list of criteria. But first, you need to be very clear on your criteria. This will prevent you from deviating and help maximize your potential rental yield in Dubai.
Stick to your criteria on how much ‘home’ you can afford.
Here are some criteria that should be clearly defined:
1. Maximum purchase price
2. Maximum mortgage payment
3. Cash-flow requirement
4. Cash on cash return
5. Maximum furnishing cost
Once you have narrowed down some potential properties in an area, you can review and compare the property building details (i.e. sale price, Dubai rental yields, rental history) at DXB Interact.
Step 3: Use ROI Calculator (Free)
Clearly, a strong return on investment (ROI) is the ultimate goal when investing in any property.
We have built a free ROI Calculator to evaluate potential returns. This calculator includes all the upfront and extra costs that come with buying a property in Dubai and the potential ROI of a given property.
Dubai Rental Yields Calculator
In short, assuming all other factors are equal, a property with a greater cash flow is the better investment.
Conclusion: Maximize Rental Yield in Dubai With Smart Strategy
While the highest rental yield in Dubai may be tempting, it’s not just about dividing rental income by property purchase price. True profitability comes from proper research, understanding community dynamics, and knowing your numbers.Let’s be honest, you probably will not find that perfect rental property that checks all on your list, but at least now you will have the tools to do your own due diligence.
