When a project is marketed with an "8% yield," that number is almost always gross — annual rent divided by purchase price. Cavendish Maxwell's H1 2026 reporting puts market gross yields at roughly 7% for apartments — so 8% gross in JVC is plausible. The differentiation is not whether the gross number is fake; it is what remains after the five deductions below.
The five deductions excluded from a yield quote
- Service charge — often the largest line; varies building to building in the same community
- Void periods — weeks between tenants; higher in oversupplied micro-locations
- Agency letting fee — typically 5% of annual rent on renewal
- DEWA / Ejari / utilities — if landlord-paid or between-tenant
- Maintenance — AC, appliances, repaints between tenancies
Service charge as a share of gross rent
Two identical-looking apartments in the same community can differ by AED 15,000–30,000 per year in service charges alone. That spread often exceeds the difference between "good" and "bad" communities. Always ask for the current per-sq-ft rate and a recent service-charge statement.
Worked example
AED 1,000,000 purchase, AED 80,000 annual rent → 8.0% gross. Deduct AED 14,000 service charge, AED 4,000 void/maintenance, AED 4,000 agency fee → AED 58,000 net. Against ~AED 1,070,000 cost base (including buying costs), net yield ≈ 5.4%.
Years 1–3 of a new tower
New buildings often show worse net yield early: higher voids while tenant mix stabilises, teething maintenance, and service charges before the sinking fund matures. Underwrite years 1–3 explicitly, not only stabilised year 5.
Chiller-free vs chiller-paid
Chiller-paid buildings add district-cooling costs that can reach AED 15,000–25,000+ per year for larger units — material against gross rent. Chiller-free is not free; it is usually priced into the purchase price or service charge.
Net yield vs mortgage rate
When net yield falls below your all-in cost of debt, leverage is dilutive — you are paying to hold. Model both unlevered and levered returns before committing.
DLD Service Charge Index — selected communities (AED/sq ft, indicative)
Sourced to DLD Service Charge Index; date-stamped August 2026. Verify current rates on DLD before transacting — buildings vary within each area.
| Community | Indicative AED/sq ft |
|---|---|
| JVC | 12–18 |
| Arjan | 14–20 |
| Downtown Dubai | 22–35 |
| Dubai Marina | 18–28 |
| Business Bay | 16–26 |
| Dubai Hills Estate | 14–22 |
| JLT | 15–24 |
| Discovery Gardens | 10–14 |
| Dubai Sports City | 11–16 |
| Town Square | 12–17 |
| Dubai South | 10–15 |
| Al Furjan | 13–19 |
How to verify a yield claim in 10 minutes
Ask for three recent transacted rents in the same building → confirm service charge per sq ft on DLD or from the owners' association → run gross and net in our rental yield calculator. If net yield does not clear your hurdle after all deductions, the gross headline is irrelevant.
Figures illustrative. For a research-led check on a specific unit, book a second opinion.
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