Insights · Rental yield
Gross vs net,
the yield you keep.
Gross yield is annual rent divided by the purchase price. Net yield subtracts service charges, management fees and an allowance for vacancy from the rent first, then divides by the price. Net is what you actually keep, so compare properties net to net.
Gross yield: rent over price
An illustrative example, not a specific property:
- AED 100,000
- Annual rent
- AED 1,500,000
- Purchase price
- 6.7%
- Gross yield
This is the number most listings headline with, because it's always the bigger one.
Net yield: the same rent, after costs
- AED 100,000
- Annual rent
- − AED 12,000
- Service charge
- − AED 5,000
- Management fee
- − AED 8,333
- Vacancy, one month (100,000 ÷ 12)
- AED 74,667
- Net income
- about 5.0%
- Net yield (74,667 ÷ 1,500,000 = 4.98%)
The costs here are examples. Your own service charge, management fee and vacancy depend on the building and the manager.
Why it matters when you compare
Two investors can quote the same property and mean different things by "yield". When you compare two properties, ask for net to net. A gross figure next to a net figure can make the gross one look better, even when it's the weaker property. Service charges in particular vary between buildings at the same price.
Questions buyers ask
What is gross rental yield?
Annual rent divided by the purchase price. It's the figure most listings headline, because it's always the bigger one.
What is net rental yield?
Annual rent minus yearly running costs, such as service charges, a management fee and an allowance for vacancy, divided by the purchase price. It shows what you actually keep.
Which yield should I use to compare properties?
Net to net. A gross figure next to a net figure can make the gross one look better, even when it's the weaker property.
Are the figures in this example real?
No. They're illustrative, to show the method. Your service charge, management fee and vacancy will differ by building and manager.
Method source, checked 27 October 2026:
All figures in the example are illustrative.