Heaven Homes · Luna Answers
Answered by Luna AI
What are typical rental yields on Dubai property?
Dubai offers among the highest residential rental yields of any major global city — typically 5–8% gross annually, occasionally 9–10% in studio/short-term-let segments.
- Typical yields by area (2026 data):
- Studios / 1-bed in International City, Discovery Gardens — 7–9%
- Dubai Marina apartments — 5–7%
- Downtown Dubai — 4.5–6%
- Palm Jumeirah villas — 4–5.5% (lower yield, capital appreciation play)
- JVC / Arjan — 7–8%
- Business Bay — 5.5–7%
Why yields are so high: No property tax. No income tax on rental income. Short-term-let regulations relatively permissive. Strong tenant demand (Dubai population growing ~4% annually). Service charges 6–18 AED/sqft/year vary by tower.
Risks to weigh: Service charges can erode net yield. Off-plan delivery delays are real. Liquidity in resale market depends heavily on community-level supply pipeline.
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