Calculating net rental yields in Dubai 2025 is essential for investors through Zamzam Property and Zamelect Properties, with averages at 6-7% amid 7.2% YoY growth. This step-by-step rental yield calculator Dubai guide demystifies the process for optimal ROI.
Step 1: Determine Gross Annual Rental Income
Estimate annual rent using the UAE rental index 2025, like AED 120,000 for a JVC apartment. Zamzam Dubai properties suggests adding 5-10% for short-term boosts in Dubai Marina, where yields reach 8%. Factor vacancy rates (5-10%) for realistic figures.
Step 2: Subtract Operating Expenses
Deduct maintenance (AED 10-35/sq.ft.), service charges, and insurance (AED 2,000-5,000). Zamelect Property includes 5% tourism tax for short-term, yielding net income of AED 90,000 for a AED 1.5 million property.
Step 3: Calculate Net Operating Income (NOI)
NOI = Gross Rent – Expenses = AED 90,000. Zamzam Properties notes 5% VAT on services, but exemptions for residential rentals apply.
Step 4: Divide by Property Value
Yield = (NOI / Property Value) x 100 = (90,000 / 1,500,000) x 100 = 6%. Adjust for capital appreciation (5-7%) for total ROI.
Tips for 2025
Use Bayut’s calculator for accuracy. Zamelect Property recommends JVC for 7.5% yields.
Master net rental yields Dubai 2025 for profitable investments. Partner with Zamzam Property or Zamelect Properties for calculations. Visit zamelectproperties.co for Dubai Zamzam Property yield tools.