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How to Calculate Rental Yield on an Off-Plan Property in Dubai

One of the most important questions investors ask when buying property is:

Rental yield is one of the key numbers investors look at when comparing property investments.

What Is Rental Yield?

Annual Rent ÷ Purchase Price × 100 = Gross Rental Yield

For example:

Purchase price: AED 1,000,000
Annual rent: AED 60,000

Gross rental yield = 6%

Don’t Forget the Costs

Gross yield does not include expenses such as:

  • Service charges
  • Property management
  • Maintenance
  • Leasing costs
  • Vacancy periods

After these costs, the actual return can be lower.

Off-Plan Properties

With an off-plan property, rental income generally starts after handover and once the property is ready to rent.

The investment timeline is therefore:

Purchase → Construction → Handover → Tenant → Rental Income

Projected rental income should be treated as an estimate, not a guarantee.

What Should You Compare?

Before buying, look at:

  • Purchase price
  • Expected rent
  • Price per sq ft
  • Service charges
  • Location
  • Handover date
  • Competing properties
  • Payment plan

Dubai Land Department provides official real estate and rental data that can help buyers research current market conditions.

Final Thoughts

Rental yield is useful for comparing investment properties, but it should not be the only factor.

Purchase price + rental demand + costs + location + payment plan should all be considered before buying.

Looking for off-plan properties in Dubai or Sharjah? Explore our latest projects or contact us for current prices and availability.

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