A 1-bedroom apartment in Jumeirah Village Circle (JVC), Dubai, listed at AED 900,000, produces a gross rental yield of about 6.7% and a net yield of about 4.7% once service charges, maintenance, vacancy and letting fees are removed. On an annual rent of AED 60,000, that's roughly AED 42,400 net per year — about AED 3,531 a month — before one-off purchase costs. The gap between the headline 6.7% and the take-home 4.7% is a ~28% haircut.
Starting from a market rent of AED 60,000 a year, here is what comes off the top to reach take-home income.
A net yield of 4.71% is acceptable, but it sits below the 6% benchmark that disciplined investors tend to target. The two levers worth testing here are negotiating the entry price down, or looking at a higher-rent area where the same capital works harder.
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All YieldOS content is for educational purposes only and does not constitute financial, investment, tax, or legal advice. Figures are a worked example based on the assumptions stated above and will differ for any specific property, tenant, or financing arrangement. Investors should verify all numbers independently and consult a licensed professional before making decisions.