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Service-charge medians are from DLD (Mollak) RERA-approved budgets, as compiled by Continental Club Property, updated 16 October 2026. Each median hides a wide range: in JVC, budgets run from AED 1.28 to AED 42.66 per sq ft. The two columns come from different datasets and are not unit-matched. Use them to compare areas, not to model a specific unit. These are secondary compilations of underlying data; Straits Properties to confirm against the DLD Service Charge Index and a primary yield dataset before publication.

The citywide apartment average was 6.66%, villas 4.45% and townhouses 5.06% (Property Monitor, August 2026).

How do you convert gross yield to net yield?

Net yield is gross yield minus operating costs as a share of rent, minus the service charge as a share of the price:

Net yield ≈ gross yield × (1 − management − vacancy − maintenance) − (service charge per sq ft ÷ price per sq ft)

Our net-yield research gives the operating ranges:

• management at 5–8% of rent

• vacancy at 4–8% of rent

• maintenance at about 1% of rent

Using the midpoints (6%, 6% and 1%), the operating deductions take 13% of gross rent. The service charge is the swing factor because it depends on price per square foot:

The price-per-sq-ft columns are hypothetical round numbers, not area data.

Worked example (illustrative): a 7% gross yield and a AED 16 per sq ft service charge give:

• at AED 800 per sq ft: 7% × 0.87 − 2.0% ≈ 4.1% net

• at AED 1,600 per sq ft: 7% × 0.87 − 1.0% ≈ 5.1% net

The same gross yield produces a one-point gap in net yield, entirely because of the price at which a fixed service charge is spread.

Where does yield actually live?

Three patterns follow from the data. Each is a Straits Properties judgement, not a ranking.

1. High-gross, lower-priced communities (International City, Dubai Sports City, Dubai South, Al Furjan, Arjan) start with the most rent per dirham invested. They also lose the most to service charges per point of yield, and their resale pools tend to be narrower and more price-sensitive. Some units here clear our 5% net threshold comfortably; many don't. Check building by building.

2. Mid-market established communities (JVC, JLT, Dubai Silicon Oasis) combine mid-6% gross yields with deep tenant demand and active resale markets. Net outcomes depend heavily on the specific building's service charge. JVC's budget range alone runs from about AED 1 to AED 43 per sq ft.

3. Prime and waterfront communities (Dubai Marina, Downtown, Business Bay, Palm Jumeirah, Creek Harbour) have lower gross yields. In return they offer liquidity and stronger tenant profiles. At their higher prices per square foot, service charges take less of the yield. But with 4.6–5.9% gross, the arithmetic leaves many units below 4% net. These are capital-growth and liquidity plays more than income plays.

What should you check at building level?

1. The DLD Service Charge Index for the building's approved budget and its history. Rises well above 5% a year are a warning.

2. Chiller arrangements: district cooling capacity charges can be separate from the service charge.

3. Actual achieved rents for comparable units, from DLD rental data or Ejari-registered contracts, not asking rents.

4. The DLD Smart Rental Index rating, launched on 2 January 2025, which rates buildings and informs rent assessments.

5. Upcoming supply in the same community, which affects both rents and resale.

6. The building's share of short-term holiday-let units, which can change the tenant mix and the community's running costs.

Why not just buy the highest gross yield?

Because gross yield is a ratio of rent to price, and a high ratio usually means a low price. Low prices reflect something: building age and quality, distance from employment centres, tenant churn or weak resale demand. The yield compensates you for those risks; it does not remove them. A 9% gross unit that nets 6% and takes a year to sell may still be the right investment. But it should be chosen for that trade-off, not for the headline.