Dubai Property Investment ROI Calculator
Calculate gross and net rental yield, monthly cashflow, cash-on-cash return, IRR, and total return for Dubai buy-to-let property investment. All upfront costs, RERA rules, and year-by-year projections built in.
Signed by: Sarah Al Qasimi (Lead Editor). Fact-checked by the full editorial team.
What this calculator covers
All standard Dubai buy-to-let metrics in one place: DLD transfer fee (4%), agent fee (2%), mortgage registration fee (0.25% of loan + AED 290), valuation, NOC, and trustee fees included in upfront costs. Net yield deducts vacancy, service charges, and management. IRR accounts for exit costs (4% DLD + 2% agent on resale). Results are illustrative — consult a licensed agent and tax adviser before committing.
Property
Mortgage
Rental income
Auto-calculated annual rent: AED 97,500 (AED 8,125/mo) based on 6.50% mid-range yield for JLT (Jumeirah Lakes Towers).
Expenses & projection
Total annual service charge: AED 10,800 for 900 sqft
Investment signal
WeakBased on net yield of 4.9%. Signals: >7% = Strong, 5–7% = Moderate, 3–5% = Weak, <3% = Avoid.
Key metrics
Total upfront cash
31.9% of purchase price
Monthly mortgage
on AED 1,125,000 loan
Annual gross rental yield
AED 97,500 gross rent
Annual net rental yield
After vacancy, service charges & management
Monthly net cashflow
Negative cashflow (top-up needed)
Cash-on-cash return
Annual cashflow / total cash invested
Estimated IRR
Over 5-year hold including exit costs
Break-even occupancy
Minimum occupancy to cover all costs
Upfront cost breakdown
Negative monthly cashflow
After mortgage, service charges, vacancy, and management fees, this investment requires a top-up of AED 740/month. Returns depend heavily on capital appreciation. Consider a higher down payment, shorter mortgage, or a higher-yielding area.
Year-by-year projection
Assumes constant rent, 4.00% annual appreciation, and exit costs of 6% (4% DLD + 2% agent) in the final year. Cashflow figures are cumulative net of mortgage.
Typical gross rental yields by Dubai area
Gross yields based on April 2026 market data. Net yields will be 1.5–3% lower after vacancy, service charges, and management fees. Higher-yield areas often carry higher maintenance loads, lower capital appreciation, or weaker tenant quality.
Gross vs net yield: the gap matters
A listing advertised at 9% gross yield can easily deliver only 5–6% net after 8% vacancy + AED 14/sqft service charges + 5% management. Always model net yield before committing. International City and IMPZ high gross yields often come with significant maintenance costs and higher tenant turnover.
All upfront purchase costs in Dubai
| Item | Price |
|---|---|
| Mandatory (DLD) | |
DLD transfer fee Paid at DLD / trustee office on transfer day | 4% of price |
DLD admin fee Fixed admin charge | AED 580 |
Title deed issuance Issuance of new title deed | AED 250 |
Trustee office fee Trustee closes the transaction on behalf of DLD | AED 4,200 |
| Mortgage costs | |
Mortgage registration fee Paid to DLD when registering the mortgage | 0.25% of loan + AED 290 |
Property valuation Required by bank before approval | AED 2,500–3,500 |
Bank processing fee One-off bank origination charge | 0.5% (capped AED 5,000) |
| Agent | |
Agent commission Standard buyer-side; negotiable | 2% of price |
| Developer | |
NOC (No Objection Certificate) Issued by developer; varies widely | AED 500–5,000 |
| Optional / bank | |
Home insurance (first year) Structure insurance required by bank | AED 500–2,000 |
8-step Dubai property buying process
- 1
Agree terms and sign MOU (Form F)
Memorandum of Understanding sets out price, payment schedule, and conditions. Both parties sign Form F — the Dubai Land Department's standard contract. Buyer typically pays 10% deposit (held in escrow or manager's cheque).Cost: 10% deposit (refundable conditions in MOU)Time: 1–3 days - 2
Obtain mortgage pre-approval (if financing)
Submit salary slips, bank statements, passport, and MOU to the bank. Pre-approval letter confirms borrowing amount. Full approval requires property valuation by bank-approved surveyor.Cost: AED 2,500–3,500 (valuation) + AED 500–1,000 (processing)Time: 5–21 days - 3
Request No Objection Certificate (NOC) from developer
Seller requests NOC from the developer confirming no outstanding dues on the unit. DLD will not process the transfer without it. Some developers charge a fee and take 1–2 weeks.Cost: AED 500–5,000 (developer-dependent)Time: 3–14 days - 4
Clear any outstanding service charges
Seller must clear all service charge arrears before transfer. Confirm with the relevant Owners Association. Buyer should verify the service charge schedule before signing.Cost: Seller obligation; verify at MOU stageTime: Simultaneous with NOC - 5
Attend DLD / Trustee office for transfer
Buyer and seller (or POA holders) attend a DLD-approved trustee office. Buyer pays DLD transfer fee (4%), trustee fee (AED 4,200), admin fee (AED 580), and title deed fee (AED 250). The bank representative also attends to register the mortgage if applicable.Cost: DLD 4% + trustee AED 4,200 + admin AED 830Time: Half day (appointment-based) - 6
Receive title deed
New title deed issued in buyer's name on the day of transfer (or next business day). The deed is the legal proof of ownership. Keep the original in a safe place.Cost: AED 250 (included in DLD fees)Time: Same day / next day - 7
Handover and DEWA / utility connection
Arrange DEWA (electricity and water) transfer. Complete property condition inspection. Collect keys and access cards from seller or developer. For off-plan, this step is after completion.Cost: DEWA connection AED 110–2,000 (property size dependent)Time: 1–3 days - 8
Register tenancy via Ejari (if letting)
If immediately letting, register the tenancy agreement on Ejari (DLD portal). This is mandatory for enforceable leases in Dubai. Agent can do this for AED 200–350.Cost: AED 200–350 (Ejari registration)Time: 1–2 days
Typical service charges by area and tower
| Item | Price |
|---|---|
JVC (Jumeirah Village Circle) — mid-range towers Large variation by tower quality | AED 8–14/sqft |
Dubai Marina — older stock Marina views push charges higher | AED 12–18/sqft |
Downtown Dubai — Burj Khalifa District Premium HHHR/Emaar buildings top AED 35 | AED 18–35/sqft |
Business Bay — standard apartments | AED 10–16/sqft |
Palm Jumeirah — apartments Frond villas can exceed AED 30/sqft | AED 15–22/sqft |
JLT — established towers | AED 10–14/sqft |
Dubai Sports City Lower-cost community | AED 8–12/sqft |
International City — clusters Lowest service charges in Dubai | AED 5–9/sqft |
Discovery Gardens | AED 8–11/sqft |
IMPZ (Dubai Production City) | AED 7–10/sqft |
Pros and cons of leveraged property investment in Dubai
Advantages
- Zero capital gains tax — all appreciation is yours.
- Zero personal income tax on rental income for individual investors.
- Strong rental yields (5–10% gross) versus London (2–4%) or Paris (2–3%).
- Leverage amplifies returns — 25% down payment controls 100% of the asset.
- AED 2M+ property qualifies for 10-year Golden Visa (can be mortgaged).
- Dubai has no rent control on new contracts (only renewal caps via RERA index).
- Strong long-term demand from expat population of 90%+.
- Freehold ownership for foreigners in designated zones — full title deed.
Risks and disadvantages
- High upfront costs — 7–10% of purchase price before possession.
- Illiquid asset — selling takes 30–60 days minimum and costs 6% in exit fees.
- Service charge surprises — can be 30–50% higher than marketed, and increase annually.
- Off-plan risk — developers have delayed or defaulted historically; escrow protection helps but does not eliminate risk.
- RERA annual rent cap limits rental income growth on re-lets (not new contracts).
- Property held through a company (not personal) is subject to 9% corporate tax on profits above AED 375,000.
- Currency risk for non-USD earners — AED is pegged to USD.
- Management is hands-on if you're overseas — a good property manager is essential.
Key warnings for Dubai property investors
RERA rent caps apply on renewal, not new contracts
When you re-let to a new tenant, you can price at any market rate. The RERA Rental Index caps only apply when renewing an existing tenancy — and only if the current rent is within 40% of the market index. New tenants mean market-rate rents, which is why tenant turnover can actually benefit landlords in rising markets.
Service charge surprises
Service charges are set by the Owners Association and can increase significantly year-on-year, especially in ageing towers needing major maintenance (elevators, AC chillers, pools). Always check the last 3 years of service charge history before buying. Some towers in JVC and Marina have seen 20–40% service charge increases in a single year after deferred maintenance hits.
Off-plan vs ready property — different risk profile
Off-plan properties offer lower entry prices and staged payment plans (typically 40% during construction, 60% on handover), but carry completion risk, delay risk, and zero rental income during construction. Ready properties start generating rent immediately but cost more upfront. For investment-only buyers, ready property is lower risk; off-plan can offer higher capital gain if the project completes in a rising market. Read our off-plan property guide for a full developer-risk framework, and our comprehensive Dubai real estate guide for a market overview before investing.
Property investment ROI — frequently asked questions
Disclaimer
This calculator is for educational and illustrative purposes only. It does not constitute financial, legal, or investment advice. Property values, yields, and costs are based on April 2026 market data and will change. Consult a RERA-licensed real estate agent and a qualified financial adviser before making any investment decision.