Gross yield formula
Annual rent ÷ purchase price × 100. This is useful for an initial comparison but ignores buying costs, vacancy, and recurring expenses.
Net yield formula
Annual rent after vacancy minus service charges, management, maintenance, insurance, and other annual costs; divided by the total acquisition cost. This produces a more realistic planning figure.
Use three scenarios
- Conservative: softer rent, more vacancy, and higher costs.
- Base: evidence-led rent and typical operating assumptions.
- Optimistic: stronger occupancy and rent, used only as an upside case.
Buyer questions
Frequently asked questions
What is a good rental yield in Dubai?
There is no universal target. Compare net yield with the property’s risk, financing, location, tenant demand, condition, and resale outlook.
Should buying costs be included?
Yes. Net return should be compared with the total cash committed, not only the advertised property price.
Does the calculator predict future income?
No. It estimates outcomes from your assumptions. Rent, vacancy, expenses, and market conditions can change.