Rental yield describes a property’s rental return, not its capital appreciation. Gross yield is the annual rental income divided by the purchase price, times 100. Net yield subtracts the ongoing costs, mainly service charge, management and any district cooling.
Net yield is more meaningful for a comparison because it accounts for the actual costs. What yield a specific unit achieves depends on location, property type, occupancy and running costs, and cannot be stated as a blanket figure. A sound calculation names its assumptions rather than promising a fixed number.
For a buyer, rental yield is the figure to compare properties on their ongoing return. The inputs for the calculation, rent and running costs, should be evidenced, not estimated.
How properties can be checked on their return is on our Dubai property investment page.
