The number on the table is not yet a return
When an investor shows me an apartment promising 7% or 8%, the first thing I do is move the conversation from the percentage to the full income statement. In Dubai, gross yield is easy to present: annual rent divided by purchase price. But the property must be managed, maintained, re-let and sometimes left vacant between contracts. With the region still affected by US-Iran tensions and their impact on Hormuz, transport and energy, the useful question is not what the brochure promises, but how much income the property can retain under pressure.
What the latest data show
DLD and Ejari data updated to 21 September 2026 indicate an average gross yield of 6.1% for Dubai apartments, based on 218,769 new tenancy contracts and 37,565 sales. Villas average 4.8%. Smaller units show higher figures: 7.9% for apartments up to 40 square metres and 7.5% for the 40-to-70-square-metre segment. The rental market remains deep: rental contracts recorded in the first quarter of 2026 were worth AED 32.2 billion. These are meaningful real-market figures, but they are gross.
The turn is hidden in the costs
The highest yield is not always the best investment. A studio may offer a stronger gross percentage but also greater tenant turnover, more vacancy and proportionally higher management costs. Service charges, maintenance, management fees, furnishing, insurance and re-letting costs do not appear in the opening formula. The correct capital base must also include registration and acquisition costs. Once the entire cash flow is rebuilt, two apparently similar properties can end up several percentage points apart.
Uncertain times require a stressed yield
For an international investor, net yield should be tested against a conservative scenario. I check what happens with rent 10% lower, one month of vacancy and an unexpected maintenance bill. If cash flow remains positive without requiring a rushed sale, the investment has a more resilient structure. Resident demand, proximity to employment, building management quality and the volume of upcoming supply also matter. In volatile periods, liquidity does not come from an appreciation promise; it comes from how easily the home continues to attract a tenant.
Why Rema Living starts with the net figure
At Rema Living, we do not compare properties using expected rent alone. We rebuild the capital actually invested, recurring costs, management and vacancy risk, then compare the result with alternatives in the same micro-location and with different objectives. This prevents an investor from choosing an apartment only because it displays the highest percentage. To review an opportunity using complete numbers and realistic scenarios, you can book a meeting with Rema Living.
The four-line operating test
Before deciding, write down four lines: total capital invested, prudent annual rent, complete annual costs and net income after one month of vacancy. Divide the last figure by total capital, not only by the apartment price. Repeat the calculation with rent reduced by 10% and one exceptional expense added. If the return still matches your objective, the number is credible. If it disappears, you were not buying income but a forecast.
