Gross Yield vs Net Yield: What Actually Matters
A headline yield figure can flatter a property. Here is the difference that matters to your actual return.
Gross yield is simply annual rent divided by purchase price. It is useful for a first, rough comparison but ignores nearly every real running cost.
Net yield subtracts service charges, typical vacancy, and management costs from rent before dividing by the all-in purchase price, including transaction costs.
When comparing two properties, always ask for both figures, and check what assumptions sit behind each one — a listing advertising only gross yield is not necessarily misleading, but it is incomplete.
Frequently asked questions
What net yield is considered strong in Dubai?
This varies significantly by community, property type and financing structure — a licensed advisor can help you benchmark a specific property rather than relying on a single market-wide number.
Sources: Demonstration article for preview purposes
This article uses illustrative figures until a licensed market-data provider is connected. It is not investment, legal or tax advice.