Which number should an investor compare?
Gross yield is only the starting point. Compare net property income after vacancy, service charges, management and maintenance, then divide that income by both purchase price and total acquisition capital. If a mortgage is used, keep the property's unlevered net yield separate from cash flow after debt service.
The calculator uses euros by default and a fixed orientation rate of 1 EUR = 4.24 AED, dated 8 August 2026. Currency conversion changes display values, not the economics of the model.
How does 6% gross become 3.74% on capital?
For a ready apartment purchased at AED 1,500,000 with AED 90,000 annual rent, the headline gross yield is 6.00%. Once two weeks of vacancy, AED 15,000 service charges, 5% management and AED 7,500 maintenance reserve are deducted, annual net property income falls to AED 59,538.
| Worked AED example | Amount |
|---|---|
| Property price | AED 1,500,000 |
| Annual rent | AED 90,000 |
| Vacancy, two weeks | −AED 3,462 |
| Service charges | −AED 15,000 |
| Management, 5% | −AED 4,500 |
| Maintenance reserve | −AED 7,500 |
| Net annual property income | AED 59,538 |
| Net yield on purchase price | 3.97% |
| Minimum acquisition capital | AED 1,591,500 |
| Net return on minimum capital | 3.74% |
The acquisition-capital illustration includes 4% DLD registration, 2% agency commission and 5% VAT on that commission. Other transaction, finance, furnishing or preparation costs can increase the required capital.
How to read the results
Total acquisition capital
This is the purchase price plus the buyer costs entered in the model. With a mortgage, the highlighted figure changes to estimated cash invested: down payment plus acquisition and bank costs. It does not represent the full economic asset value.
Net property yield
This measures the property before finance and personal tax. It is the cleanest way to compare two assets with different buyer financing. Use registered rent evidence and the exact approved building service charge wherever possible.
Cash-on-cash return
This appears when mortgage is selected and deducts estimated annual debt service. It is highly sensitive to interest rate, term, down payment and lender fees. Principal repayment builds equity but remains part of the cash payment, which is why financing analysis should be read separately from the unlevered asset return.
Off-plan timing
An off-plan calculation describes a possible operating year after handover. It does not value the construction-period instalments, delay risk, furnishing period or years without rental income. Compare off-plan and ready property over the same full timeline in the off-plan versus ready guide.
Which assumptions require verification?
- DLD or Oqood: confirm registration treatment and contractual allocation for the exact transaction.
- Agency: the ready-property default is 2% plus 5% VAT on the commission; the signed brokerage agreement governs.
- Rent: use registered or genuinely comparable evidence, not the highest listing.
- Service charges: check the approved building figure through Mollak and confirm the chargeable area.
- Management and maintenance: use the actual service scope, building condition and rental strategy.
- Mortgage: obtain a lender illustration; the calculator's amortisation is only an estimate.
Sources checked 7 August 2026: Dubai Land Department property-sale registration, DLD Open Data, DLD Rental Index and DLD/RERA Mollak. Calculations are planning estimates, not valuation, finance, legal, tax or investment advice.
Questions about the calculation
What does the Dubai property calculator include?
It models the property price, Dubai Land Department registration, agency commission, value-added tax on the commission, fixed acquisition costs, vacancy, service charges, management and maintenance. Optional mortgage fields separate property return from financed cash flow.
Why does the calculator show three return figures?
Gross yield is rent divided by price. Net yield on price deducts running costs. Net return on acquisition capital also includes purchase costs, giving a more complete comparison between properties.
Is the 4% DLD fee always paid by the buyer?
The official registration service applies a 4% fee to the sale-contract value, while contract allocation and incentives can vary. The calculator treats it as a buyer planning assumption and leaves the rate editable.
How is agency commission calculated?
The ready-property default is 2% of price plus 5% UAE value-added tax on that commission. The percentage remains editable because the signed brokerage agreement governs the transaction.
Does the calculator include mortgage repayments?
Yes. When mortgage is selected, it estimates annual debt service from down payment, interest rate and term. The unlevered property yield remains separate from cash flow and cash-on-cash return.
Can I use the calculator for off-plan property?
Yes, but the displayed rent and yield describe a possible post-handover operating year. They do not include the construction period, delay risk or time value of staged payments.
Does AED 2 million automatically qualify for a Golden Visa?
No. Reaching the value threshold is only an initial indicator. Personal ownership, paid amount, mortgages, registration evidence and current authority requirements must still be confirmed.
Are Dubai rental returns tax-free?
There is no universal answer for an international investor. UAE personal-tax treatment and the rules of the investor's country of tax residence must be considered separately.
