Gross yield is quick. Net yield is more useful because it includes the costs needed to own and run the property.
Gross rental yield
Annual rent ÷ purchase price × 100. If a home costs AED 1,000,000 and the yearly rent is AED 70,000, the gross yield is 7%.
Net rental yield
Annual rent minus yearly running costs, divided by the full cash cost, × 100. The full cash cost can include the purchase price, buying fees, and needed fit-out.
Costs to include
- Service charges and building costs
- Management and leasing fees
- Repairs, insurance, and furnishing
- A fair vacancy allowance
- Finance cost, if you want a cash-return view
Use real rent evidence
Compare the same building, unit type, size, condition, view, and lease date. Asking rent is not proof of a signed rent. Test a lower rent and a vacant month to see if the deal still works.
Yield is one part of the buy
High yield can come with weak resale demand, poor building care, hard management, or higher risk. Also compare the tenant pool, service charges, unit quality, and future supply.
Useful official check
This is a simple comparison method, not a promise of return. Use verified costs and signed-rent evidence for the exact home.