Rental Yield Overview
The UAE property market offers some of the highest rental yields among global gateway cities, underpinned by zero personal income tax, strong population growth, and sustained expatriate housing demand. Gross rental yields across the three major emirates ranged from 5.2% to 9.8% in early 2025, depending on property type and location.
Dubai Residential Rental Yields
| Area | Apartment Yield (%) | Villa Yield (%) | Avg. Price/sqft (AED) |
|---|
| Dubai Marina | 6.4 | - | 1,850 |
| JVC (Jumeirah Village Circle) | 8.2 | 6.1 | 980 |
| Business Bay | 6.8 | - | 1,720 |
| Downtown Dubai | 5.6 | - | 2,450 |
| Dubai Silicon Oasis | 8.6 | 6.4 | 820 |
| Palm Jumeirah | 5.2 | 4.1 | 3,200 |
| International City | 9.4 | - | 540 |
| Arabian Ranches | - | 5.0 | 1,480 |
| DAMAC Hills | 7.1 | 5.8 | 1,050 |
Abu Dhabi Residential Rental Yields
| Area | Apartment Yield (%) | Villa Yield (%) | Avg. Price/sqft (AED) |
|---|
| Al Reem Island | 7.2 | - | 1,180 |
| Yas Island | 6.8 | 5.6 | 1,340 |
| Saadiyat Island | 5.8 | 4.8 | 1,620 |
| Al Raha Beach | 6.5 | 5.2 | 1,280 |
| Khalifa City | 7.8 | 6.0 | 750 |
| Al Reef | 8.4 | 6.8 | 620 |
Sharjah Residential Rental Yields
| Area | Apartment Yield (%) | Villa Yield (%) | Avg. Price/sqft (AED) |
|---|
| Al Nahda | 8.6 | - | 480 |
| Al Majaz | 7.8 | - | 560 |
| Al Taawun | 8.1 | - | 520 |
| Muwaileh | 9.2 | 7.4 | 420 |
| Tilal City | - | 6.8 | 580 |
Commercial Property Yields
| Property Type | Dubai (%) | Abu Dhabi (%) | Sharjah (%) |
|---|
| Office (Grade A) | 7.2 | 6.8 | 8.4 |
| Office (Grade B) | 8.8 | 8.2 | 9.8 |
| Retail (Mall) | 8.5 | 7.6 | 9.1 |
| Retail (Street) | 7.0 | 6.4 | 8.0 |
| Warehouse/Industrial | 9.2 | 8.8 | 9.6 |
Global Yield Comparison
| City | Avg. Gross Rental Yield (%) |
|---|
| Dubai | 6.8 |
| Abu Dhabi | 6.6 |
| London | 3.4 |
| New York | 3.8 |
| Singapore | 3.6 |
| Hong Kong | 2.4 |
| Sydney | 3.2 |
Key Considerations
Rental yields in the UAE are calculated on a gross basis and do not account for service charges, maintenance, management fees, or vacancy periods. Net yields typically run 1.0-2.5 percentage points below gross figures. The absence of property income tax in the UAE, however, means gross-to-net compression is significantly less than in most Western markets.
Outlook
Yields are expected to stabilise in 2025-2026 as property prices moderate following the 2022-2024 appreciation cycle while rents continue to rise, albeit at a slower pace. Affordable and mid-market segments in Dubai’s outer areas and Sharjah are likely to maintain the highest yields as demand from mid-income expatriates remains robust.