Dubai Rental Yields by Area 2026: Complete ROI Comparison for Buy-to-Let Investors
Why Rental Yield Is the #1 Metric for Dubai Investors
If you're buying property in Dubai for investment, rental yield is the number that matters most. It tells you how much income your property generates relative to its purchase price — and in Dubai, that number varies dramatically by area.
A studio in JVC might deliver 8% gross yield, while a similar-priced apartment in a premium location returns 4%. Both can be good investments — but for different reasons. Understanding the yield landscape helps you match your investment strategy to the right location.
What "Gross Yield" Really Means
Gross yield = (Annual Rent / Purchase Price) × 100. It's the headline number, but it doesn't account for service charges, maintenance, vacancy, or DLD fees. Net yield — which factors in these costs — is typically 1.5–2% lower.
The DLD Smart Rental Index
The Dubai Land Department's Smart Rental Index is the authoritative source for rental data in Dubai. It tracks actual rental transactions by area and unit type, providing a more accurate picture than listing prices. All yield data in this guide references the DLD Smart Rental Index where available.
Dubai Rental Yields by Area — 2026 Data
Here's a comprehensive comparison of rental yields across Dubai's major investment areas:
| Area | Avg Gross Yield | Avg Rent (1BR) | Entry Price | Yield Trend |
|---|
| Jumeirah Village Circle (JVC) | 6.5–8% | AED 65K–80K | AED 500K+ | ↑ Stable |
| Dubai Production City | 7–8% | AED 45K–55K | AED 400K+ | ↑ Improving |
| Dubai Silicon Oasis | 6.5–7.5% | AED 55K–65K | AED 500K+ | → Stable |
| DAMAC Hills 2 | 6–7% | AED 40K–55K | AED 450K+ | ↑ Improving |
| Liwan | 6.5–7.5% | AED 45K–55K | AED 400K+ | ↑ Improving |
| Business Bay | 5–6% | AED 90K–120K | AED 1.2M+ | → Stable |
| Dubai Marina | 4–5% | AED 100K–140K | AED 1.5M+ | → Stable |
| Downtown Dubai | 3.5–4.5% | AED 120K–180K | AED 2.5M+ | → Stable |
| Palm Jumeirah | 3.5–4.5% | AED 150K–250K | AED 3M+ | → Stable |
| Dubai Creek Harbour | 4–5% | AED 100K–140K | AED 1.8M+ | ↑ Rising |
| MBR City | 4.5–5.5% | AED 80K–110K | AED 1.3M+ | ↑ Rising |
Yield data sourced from DLD Smart Rental Index and market analysis. Actual yields vary by building, unit type, and condition.
Top 5 Areas for Rental Yield in 2026
1. Jumeirah Village Circle (JVC)
JVC consistently tops the yield charts, and 2026 is no different. A combination of affordable entry prices, strong tenant demand, and improving infrastructure keeps yields in the 6.5–8% range.
Why it outperforms: JVC's affordability attracts a large pool of tenants — young professionals, small families, and budget-conscious expats. The area's ongoing development (new retail, schools, and parks) is steadily improving its appeal without pushing prices beyond the yield sweet spot.
Best unit type: 1BR apartments offer the highest yield-to-price ratio. Studios have higher yield percentages but narrower tenant demand.
2. Dubai Production City
Formerly Dubai Industrial City, this area offers some of Dubai's highest yields (7–8%) at the lowest entry prices. The trade-off: it's further from the city center and has fewer amenities than established communities.
Why it outperforms: Ultra-affordable entry prices (from AED 400K) and proximity to the Expo 2020 site and Al Maktoum Airport development zone are driving tenant demand.
Best unit type: Studios and 1BR apartments for budget tenants working in nearby free zones.
3. Dubai Silicon Oasis (DSO)
DSO combines reasonable yields (6.5–7.5%) with a self-contained community feel. The free zone's tech-focused tenant base provides stable rental demand.
Why it outperforms: DSO's free zone status attracts tech companies and their employees, creating a natural tenant pipeline. The community has its own schools, retail, and amenities — reducing the "remote location" discount.
Best unit type: 1BR and 2BR apartments for tech professionals and small families.
4. DAMAC Hills 2
DAMAC Hills 2 offers 6–7% yields with a family-friendly community layout. It's more affordable than the original DAMAC Hills, making it attractive for yield-focused investors.
Why it outperforms: Lower entry prices than DAMAC Hills, with similar community amenities. Growing retail and school options are improving livability.
Best unit type: Townhouses for families seeking community living at accessible prices.
5. Liwan
Liwan is an emerging area near Dubai Silicon Oasis with yields of 6.5–7.5% and entry prices from AED 400K. It's one of Dubai's best-kept yield secrets.
Why it outperforms: Proximity to DSO and Academic City provides a steady tenant base. New developments are adding retail and community facilities.
Best unit type: Studios and 1BR apartments for students and young professionals.
Premium Areas: Lower Yield, Higher Appreciation
High-yield areas aren't the only game in town. Premium locations offer a different value proposition:
Dubai Marina
4–5% gross yield, but among the highest capital appreciation in Dubai (8–12% annually). The Marina's global appeal ensures strong liquidity — you can sell quickly if needed. Best for investors who prioritize capital growth over rental income.
Palm Jumeirah
3.5–4.5% yield with premium capital appreciation. The Palm's brand value and limited supply make it a long-term hold play. Short-term rentals can push effective yields to 6–7%.
Downtown Dubai
3.5–4.5% yield with the strongest brand premium in Dubai. Proximity to Burj Khalifa and Dubai Mall ensures perpetual demand, but entry prices are high (AED 2.5M+).
For a detailed comparison between two premium areas, see our Dubai Marina vs Palm Jumeirah investment guide.
How to Calculate Your Real Rental ROI
Gross yield is the starting point, not the finish line. Here's how to calculate your actual return:
Gross Yield → Net Yield
Start with gross yield, then subtract:
- Service charges: AED 10–25/sqft annually (varies by building and area)
- Maintenance: Budget 1–2% of purchase price annually
- Vacancy: Allow 5–8% for tenant turnover periods
- Property management: 5% of rental income (if using an agent)
Example: AED 800K 1BR in JVC
- Annual rent: AED 65,000
- Gross yield: 8.1%
- Service charges: -AED 12,000
- Maintenance: -AED 8,000
- Vacancy (5%): -AED 3,250
- Net income: AED 41,750
- Net yield: 5.2%
Still strong — and tax-free. In a market with income tax, you'd need a 7–8% pre-tax yield to match this.
Don't Forget Transaction Costs
On purchase, factor in DLD fees (4%), agent fees (2%), and admin costs (~AED 5,000). These add roughly 6% to your purchase price and should be included in your ROI calculation.
Short-Term vs Long-Term Rental Yields by Area
Short-term rentals (Airbnb, holiday homes) can significantly boost yields in tourist-friendly areas. Our short-term vs long-term rental comparison covers this in detail, but here's the area-specific picture:
- Dubai Marina, Palm Jumeirah, Downtown: Short-term yields can exceed long-term by 30–50%. High tourist demand justifies the management effort.
- Business Bay: Short-term premium of 20–30%. Corporate travelers provide steady demand.
- JVC, DSO, DAMAC Hills 2: Short-term premium of 10–20%. Lower tourist demand makes long-term more reliable.
Short-term rentals require a Dubai Tourism holiday home license and active management. Factor in management fees (15–25% of revenue) and higher turnover costs.
Find Your Best Yield Property with Sophia
Comparing yields across dozens of areas and hundreds of projects is time-consuming. Sophia, the AI property advisor from Aigents Realty, simplifies this.
Tell Sophia your target yield and budget — it will show you which areas and properties match. Whether you're looking for 7%+ gross yield under AED 1M or a Golden Visa-qualifying property with decent returns, Sophia filters the market for you.
Ask Sophia to find high-yield properties matching your budget →
Frequently Asked Questions
Which area in Dubai has the highest rental yield in 2026?
Dubai Production City and Jumeirah Village Circle (JVC) lead with 7–8% gross rental yields. These areas offer the best yield-to-price ratio, though they trade some location convenience for higher returns.
What is a good rental yield in Dubai?
Gross yields of 5–7% are considered good in Dubai. Net yields of 4–5% are competitive globally, especially since Dubai has no income tax on rental income. Premium areas typically offer 3.5–5% gross yield with stronger capital appreciation.
Are Dubai rental yields sustainable in 2026?
Yes. Dubai's rental market is supported by strong population growth, limited supply in established areas, and consistent foreign investment. The DLD Smart Rental Index shows stable or improving yields in most areas. The key risk is oversupply in specific new-development areas.
How do service charges affect rental yields in Dubai?
Service charges typically reduce gross yield by 1.5–2%. They vary significantly by building (AED 10–25/sqft annually). Always check service charges before buying — high charges in a seemingly high-yield property can erode your net return.
Should I invest for rental yield or capital appreciation?
It depends on your goals. Yield-focused investors should target mid-market areas (JVC, DSO, DAMAC Hills 2). Appreciation-focused investors should consider premium areas (Dubai Marina, Palm Jumeirah, Downtown). Many investors split their portfolio across both strategies.
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Related AiGentsRealty resources - [Browse Dubai investment projects](/projects) - [Compare Dubai areas](/areas) - [Investment guides](/investment)
Sources and further reading - [DLD Smart Rental Index 2026](https://dubailand.gov.ae/en/) ## Practical due diligence checklist Use this article as a shortlist filter, then validate the specific asset before making a decision. Confirm the current asking price against recent transactions, check the total acquisition cost rather than only the headline price, and review service charges, payment-plan obligations, handover assumptions, and resale liquidity. For off-plan purchases, verify escrow registration, construction progress, developer delivery history, and the exact clauses in the sales and purchase agreement. For ready property, inspect the unit condition, building maintenance, occupancy profile, parking, views, and realistic rental demand. Before committing, compare at least three alternatives in the same budget band. The strongest option is usually the one where location, entry price, floor plan, developer quality, future supply, and exit strategy all align. Avoid relying on generic area averages or marketing brochures when unit-level evidence is available.
