Property search
  • News
  • Real yield from renting an apartment in Dubai: how to calculate

Real yield from renting an apartment in Dubai: how to calculate


Getting from 10% of the net profit from renting real estate in Dubai is real, but there are nuances...

What are the costs incurred by the owner when renting an apartment:

Service charge - maintenance fee, including utility bills. With a short-term lease, the service charge is paid by the owner, with a long-term lease - by the tenant of the apartment. The approximate amount of payments is 2-5%.

The commission for a real estate agency that rents an apartment instead of you and solves all household issues (the so-called property management) is 20% of the rental amount.

How WRONG to calculate the income from renting an apartment:

Multiply income from one month by 12 for short-term rentals - since in Dubai its cost changes 1.5-2 times due to the season.

“My apartment costs $1 million, I want 10% per annum - they will rent it out for $100,000 a year” - it doesn’t work that way. The apartment will be rented at the market price.

How to quickly calculate the real yield from monthly rent?

  1. Look at the market value of apartment rentals on Bayut or Airbnb for similar parameters: area, size, and newness.
  2. Multiply the cost of 1 month of rent per season by 7 (not 12!). This will give you a rough estimate including the aforementioned fees.

This simplistic formula takes into account underutilization and the varying rental rates throughout the year, as well as all expenses.

And yes, getting from 10% of net profit is real, but for this you need to carefully choose the object and area.

Contact us and we will select investment-attractive apartments for your budget and show specific profitability calculations for them info@mercuryestate.com

Properties in UAE


  • ID: AE-OM-141043
  • Luxury propery price € 574 300 € 574 300
Apartment • For sale
  • ID: AE-OM-141039
  • Luxury propery price € 366 000 € 366 000
Apartment • For sale
  • ID: OW-OAE-140078
  • Luxury propery price € 3 845 000 € 3 845 000
Land • For sale
  • ID: AE-171-136373
  • Luxury propery price € 500 000 € 500 000
Apartment • For sale
  • ID: OW-OAE-136223
  • Luxury propery price € 3 900 000 € 3 900 000
Apartment • For sale
  • ID: OW-OAE-136090
  • Luxury propery price € 2 714 000 € 2 714 000
Apartment • For sale
Purchase Rent
Or find a country, region, city / district
Choose property type
filter

Residential property

filter

Commercial property

filter

Land

Price, EUR:


Location:

Characteristics:

View:

Special offers

Exclusive and luxury real estate - the best deals.

For sale
  • ID: CY-208-140692
  • Luxury propery price € 5 100 000 € 5 100 000
House
For sale
  • ID: ME-197-129696
  • Luxury propery price € 1 059 000 € 1 059 000
Apartment
For sale
  • ID: LV-126525
  • Luxury propery price € 2 500 000 € 2 500 000
House
Would like to receive the best website experience? Agree to our Cookie policy.