The Net Yield Checklist: 12 costs to check before you buy in Dubai

These are the 12 costs between the yield on a listing and what you actually keep. Work through them before you make an offer, then put your numbers into the net yield calculator.

Net yield = (annual rent − running costs 07 to 12) ÷ (price + buying and set-up costs 01 to 06) × 100

01. DLD transfer fee and registration

The Dubai Land Department charges 4% of the price on transfer. It's legally split 50/50, but in practice the buyer pays it all. On top come the title deed (AED 580) and the registration trustee fee (AED 4,000 + 5% VAT, or AED 2,000 + VAT under AED 500,000). On off-plan you pay the 4% when the contract is registered (Oqood), not at handover. Full breakdown with a worked example.

02. Agent commission

Usually 2% of the price plus 5% VAT, paid by the buyer on a resale. On off-plan the developer usually pays the agent, so there's normally no commission for you.

03. Mortgage costs

Mortgage registration at the DLD is 0.25% of the loan plus about AED 290. Banks charge an arrangement fee of up to 1% of the loan plus VAT (some waive it), and a valuation costs AED 2,500 to 3,500. Banks don't lend against these costs, so they come out of your own pocket on transfer day.

04. Developer NOC fee

On a resale, the developer issues an NOC before the transfer can go ahead. It costs AED 500 to 5,000 depending on the developer. It's usually the seller's cost, but check who pays in your MOU.

05. Furnishing and replacing it

A rental needs furniture, appliances and set-up, and a furnished unit wears out. Budget to replace it every 4 to 5 years and spread that cost over those years when you work out your yield. Furnish for what tenants and guests pay more for, not for your own taste.

06. Utility connections

DEWA, district cooling and internet are separate accounts, each with its own connection or activation fee. On a long-term lease the tenant usually pays the utility bills. On a holiday home you pay them yourself.

07. Service charges and district cooling

Service charges are usually the biggest running cost. They're set per square foot and vary a lot by building, from around AED 10 to over AED 25 per sq ft a year in mainstream areas. Check the building on the DLD Service Charge Index, see how the charge has moved over the last few years, and ask the seller for the latest invoice. Some buildings bill district cooling separately, so check whether it's included.

08. Landlord and contents insurance

Landlord insurance protects you as the owner, and contents insurance covers the furniture and appliances in a furnished unit. Ask whether the building's own insurance is already part of the service charge so you don't pay twice.

09. Maintenance and AC servicing

AC servicing, repairs and replacing appliances between tenants. The AC runs most of the year here, so plan for regular servicing rather than waiting for it to break.

10. Management fees

If someone manages a long-term let for you, it's usually around 5% of the rent. For a holiday home, an operator usually takes a share of the revenue, and cleaning, linen and restocking come on top.

11. Vacancy

Even a good unit can sit empty for a few weeks between tenants, and one empty month takes over 8% off a year's rent. For a holiday home, use a realistic full-year occupancy, not peak season.

12. Short-term rental costs

A holiday home needs a DET holiday home permit for each unit, plus a building or developer NOC where required. Guests pay the Tourism Dirham of AED 10 to 15 per occupied bedroom per night, which you collect and pay to DET monthly. Booking platforms also take a commission. Short-term vs long-term rental compares the two in full.

Want us to run the numbers on a specific unit? Get in touch.