Net rental yield explained. Dubai real estate term · Costa Global Capital
Glossary/Net rental yield

Net rental yield.

Annual rental income minus service charges and operating costs, divided by purchase price. The number that matters for investors.

Definition

What Net rental yield means.

Net rental yield is the annual rental income (gross) minus annual service charges and operating costs (maintenance, agency, vacancy), divided by the property purchase price. Quoted as a percentage. It's the only yield number serious investors use.

The team's read

What this actually means for buyers.

Marketing brochures lead with gross yield because it sounds bigger. Mario's pricing sheets always carry both: gross at the top, net at the bottom. The gap is real. A Marina apartment listed at 7.5 percent gross might net 5.2 percent after service charge (AED 22 per sqft), agency fee (5 percent of rent), and a one-month vacancy allowance. Net yield ranges Mario publishes by area: Palm 5.5-7%, Marina 6.5-8.5%, Creek Harbour 6.0-7.5%, JVT/JVC 7.0-8.5%, Business Bay 6.5-8%.

Formula
(Gross rent - service charge - costs) / Purchase price
Palm Jumeirah
5.5 to 7.0 percent
Dubai Marina
6.5 to 8.5 percent
Creek Harbour
6.0 to 7.5 percent
JVT / JVC
7.0 to 8.5 percent
Always compare
Net, not gross

Have a specific deal in mind?

Mario walks every European investor through these mechanics on the first call. The diligence trail is what separates a clean deal from a regret.