Rental yield in Dubai is the yearly property rent that is shown as a percentage of its purchase price. ROI counts your costs such as buying fee, service charges and empty months against what you invested.
The average rental yield Dubai in 2026 is 6.34% but the spread is wide. International City apartments return close to 9% a year, Palm Jumeirah under 5% and villas average 4.45% against 6.66% for apartments.
Rents in Dubai have also decreased in many communities so a new lease can pay less than what a report suggests.
This guide covers rental yield Dubai property returns by area and by property type, and shows how to calculate your own ROI.
Quick Answer
- Average Gross Yield: 6.34% across the city as of August 2026. Apartments average 6.66%, townhouses 5.06% and villas 4.45%.
- Highest Yield Areas: Dubai Investments Park (9.61%), International City (8.93%) and Dubai Sports City (7.76%).
- Lowest Yield Areas: Palm Jumeirah (4.58%), Downtown Dubai (5.10%) and Dubai Creek Harbour (5.12%).
- Best Property Type for Yield: Apartments, especially studios and one-bedrooms.
Are Rents Falling in Dubai in 2026?
Yes. The latest market reports rents have eased in many communities in Dubai, so the rental yield Dubai investors can earn on a new lease is less, as compared to what the figures state in older reports.
- Q3 2026 data shows apartment rents down 12.8% in Dubai Marina, 12.2% in Business Bay and 10.4% in JVC year on year.
- Median asking rents fell in nine of ten tracked apartment communities between Q3 2025 and Q3 2026. Downtown Dubai dropped 21.7% and Dubai Marina 16.1%. Dubai Hills Estate stayed flat.
- Drops of only 4.3% in Discovery Gardens and 0.4% in International City phases 2 and 3 were recorded by Savills.
Investors need to price their purchase on today’s asking rent for the exact building. Whereas, renters now have got more room to negotiate. Browse properties for rent in Dubai for current options.
Want to Know the Rental Yield of a Specific Property?
Apex Skyline shows recent rents, service charges & sale prices.
Rental Yield in Dubai by Area in 2026
Value areas such as International City, Dubai Investments Park and Discovery Gardens are currently the highest rental yield areas Dubai. Whereas, prime areas such as Palm Jumeirah and Downtown give the lowest.
| Area | Apartment Gross Yield | Tier |
|---|---|---|
| International City | 8.93% | Value |
| Dubai Sports City | 7.76% | Mid Market |
| Dubai South | 7.21% | Mid Market |
| Al Furjan | 7.08% | Mid Market |
| Arjan | 6.95% | Mid Market |
| Dubai Silicon Oasis | 6.69% | Mid Market |
| Jumeirah Lakes Towers | 6.58% | Mid Market |
| Jumeirah Village Circle | 6.36% | Mid Market |
| Business Bay | 5.92% | Prime |
| Dubai Hills Estate | 5.82% | Prime |
| Dubai Marina | 5.51% | Prime |
| Jumeirah Beach Residence | 5.19% | Prime |
| Dubai Creek Harbour | 5.12% | Prime |
| Downtown Dubai | 5.10% | Prime |
| Palm Jumeirah | 4.58% | Prime |
Note: The tiers are Apex Skyline’s own grouping.
Rental Yield in Value Areas
- International City returns 8.93% and another resource reports median apartment prices up 5.26% year on year in H1 2026.
- Dubai Investments Park returns 9.61% in August 2026 review. The same review shows Dubai Production City at 8.18% with prices up 12.64% in H1 2026.
- Discovery Gardens shows two numbers. Bayut’s H1 2026 report projects 9.06%, while Engel & Volkers’ review shows 7.83%. This is why you should check the building age, service charges and how quickly units re-let before you buy.
Rental Yield in Mid Market Areas
- Dubai Sports City (7.76%), Dubai South (7.21%), Al Furjan (7.08%) and Arjan (6.95%) lead this group.
- Jumeirah Village Circle sits at the lower end with 6.36%. JVC apartment rents were down 10.4% and Al Furjan down 7.5% in Q3 2026 so check live rents before you buy any of these properties.
- Dubai Silicon Oasis (6.69%) and Jumeirah Lakes Towers (6.58%) sit just behind.
Rental Yield in Prime Areas
- Business Bay returns 5.92%, Dubai Marina 5.51% and Downtown Dubai 5.10%. Palm Jumeirah is lowest at 4.58%.
- Higher prices are the main reason why yields are down here. Such prime areas tend to offer more modest yields but stronger long-term value growth in most cases.
- Marina and Downtown also saw the sharpest 2026 rent drops, so you need to also recheck their yields against current asking rents.
For a wider look into highest rental yield areas Dubai, read Best Areas to Invest in Dubai in 2026: By Budget and Goal.
Not Sure Which Area Fits Your Budget?
Apex Skyline shortlists buildings with real rent & service charge numbers.
Rental Yield in Dubai by Property Type
Apartments for rent in Dubai win the best rental yield Dubai at 6.66%, and the figures are even ahead of townhouses at 5.06% and villas at 4.45%.
| Property Type | Average Gross Yield in August 2026 |
|---|---|
| Apartments | 6.66% |
| Townhouses | 5.06% |
| Villas | 4.45% |
Apartments: Studios, One-Bedrooms and Two-Bedrooms
- Smaller units give the highest ROI for rental apartments in Dubai because they cost less to buy. Studios post strong percentage yields where tenant demand is high, while one and two-bedroom flats balance price, demand and rent.
- Demand backs it up. In seven of the ten communities in Q3 2026, studios or one-bedrooms drew the largest share of tenant enquiries according to Khaleej Times.
Townhouses and Villas
Villa and townhouse yields mostly fall between 3% and 6.6% depending on the community.
| Community (Villas & Townhouses) | Gross Yield |
|---|---|
| Al Barari | 6.57% |
| The Sustainable City | 5.82% |
| Jumeirah Golf Estates | 5.76% |
| DAMAC Hills 2 | 5.71% |
| Town Square | 5.07% |
| Dubai Hills Estate | 4.69% |
| Arabian Ranches | 4.00% |
| Jumeirah Park | 3.48% |
| Jumeirah Islands | 3.26% |
Villas are believed to be a better fit for investors who are chasing capital appreciation or a particular tenant group than for those after the top percentage return.
Off-Plan vs Ready Property Rental Yield Dubai
Off-plan units often cost less upfront and come with payment plans but rent only starts after handover. Your rental yield Dubai is still worked out on the price you paid.
Off-Plan vs Ready Property in Dubai compares both routes.
Furnished Units and Short Term Rentals
- Furnished units can earn 10% to 25% more annual rent.
- Holiday homes can earn more gross income in the right location. They also bring higher running costs, uneven occupancy and DET permit rules so compare net returns and not gross.
How to Calculate ROI on Property in Dubai?
To calculate ROI on property in Dubai, you need to divide the yearly rent by the purchase price for gross yield, then subtract your costs for net rental yield and ROI.
These formulas work as a simple Dubai property ROI calculator.
- Gross rental yield (%) = (annual rent ÷ purchase price) × 100
- Net rental yield (%) = [(annual rent − annual expenses) ÷ purchase price] × 100
- ROI (%) = (net profit ÷ total investment cost) × 100, where total cost includes buying fees
Costs to Include
- DLD transfer fee: 4% of the sale price.
- Service charges: Look up your building’s approved rate on the DLD Service Charge Index, then multiply the rate per sq ft by the unit size.
- Maintenance and Management: Budget for repairs and tenant handling. If you would rather not run it yourself, Apex Skyline’s property management service finds tenants, registers Ejari and collects rent.
- Vacancy: every empty month removes one-twelfth of the yearly rent.
How Apex Skyline Helps You Invest for Yield?
Apex Skyline helps you buy, rent out and manage property in Dubai with the yield numbers checked before you commit.
- Licensed Advisors: Our team is licensed with RERA and DLD.
- Building Level Numbers: We pull real service charges, recent transactions and rent comparisons before you view.
- Right Property for Your Budget: Other than rental properties, we also feature property for sale in Dubai or new off-plan projects that match your yield target.
- After-Purchase Support: We find tenants, register Ejari and collect rent for you.
Wrap Up,
Dubai still pays well but the rental yield you earn depends on where you buy, what you buy and what it costs to hold.
- Use 6% to 7% gross as the apartment benchmark and about 4% to 5% for villas and townhouses.
- Value areas pay more but need more checking. Prime areas pay less and are bought for growth.
- Rents are softer in 2026 so confirm today’s rent before you make an offer.
- Compare net yield, not gross, every time.
Please note that the figures above come from verified sources and reflect their stated dates. Yields change as rents and prices move.
Find a Property that Fits Your Rental Yield Dubai Target
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FAQs
1. What is a good rental yield in Dubai?
A gross yield of 6% to 8% is typical for apartments in 2026. Anything above 8% is strong but usually sits in value areas. The citywide average is 6.34%.
2. Which area in Dubai has the highest rental yield?
Dubai Investments Park leads at 9.61% in August 2026 review, followed by International City at 8.93%. Bayut projects 9.06% for Discovery Gardens.
3. What is the ROI for rental apartments in Dubai?
ROI for rental apartments in Dubai on an average is 6.66% gross yield. After service charges, maintenance and fees, ROI is even lower.
4. How do I calculate rental yield in Dubai?
All you need to do is to divide the annual rent by the purchase price and multiply by 100. AED 70,000 rent on an AED 1,000,000 apartment is a 7% gross yield.
5. Do apartments or villas give a better rental yield?
Apartments give a rental yield of 6.66% against 4.45% for villas. Villas suit investors focused on capital growth or family tenants.
6. Do short-term rentals earn more than long-term leases?
They can earn more gross income in the right location, but costs, vacancy and DET permit rules are higher. Compare net returns before you choose.
7. Do I pay tax on rental income in Dubai?
The UAE has no personal income tax on individuals. Rules for companies differ so confirm your structure with a tax adviser.
