Gross Yield vs Net Yield in Dubai Property

Key numbers

Gross yield

Annual rent ÷ purchase price

Net yield

Net income ÷ true capital deployed

Morgan's analysis

What gross yield measures

Gross rental yield is usually annual asking or achievable rent divided by purchase price. It is useful for first screening. It ignores acquisition costs, ongoing operating costs, vacancy, and how much cash you actually put to work.

What net yield should include

• Service charges and community fees
• Property management (if used)
• Vacancy / void assumptions
• Maintenance and furniture refresh allowances
• Insurance and chiller/cooling where applicable
• Acquisition costs when comparing capital efficiency (or report net yield on price and show capital deployed separately)

True capital deployed

Purchase price alone understates capital at risk. Transfer fees, agency, trustee/registration, and other acquisition costs raise the denominator. Comparing two deals on price-only yield can reverse the ranking once capital deployed is honest.

Risks & limitations

• Asking rents are not achieved rents.
• Service charges and community fees can move after handover.
• Citywide yield bands are not underwriting for a specific unit.

Conclusion

Use gross yield to filter. Use net income and true capital deployed to decide. If you want the numbers pressure-tested against a real brochure or listing, use the True Yield calculator or ask Morgan to analyse the investment.

Sources

• Methodology. Morgan Kaiser educational framing, Educational definitions; not a quoted market survey.