Direct answer
Are 8% rental yields available in Dubai in 2026?
Yes at community-screen level, but not as a promise for every property. PropertyStellar's current gross PSF screen found Deira at 10.44%, Al Qusais 1 at 10.29%, Remraam at 8.40% and Discovery Gardens apartments at 8.20%. These are unpaired community benchmarks using median new-rent and closed-sale evidence; an individual unit's achievable net yield can be materially lower.
Official sources: Real Estate Data · Service Charge IndexWritten by Arjun Mehta, Property Investment Analyst, Property Stellar. Reviewed by Omar Al Mansouri, Dubai Real Estate Investment Consultant · UAE Real Estate Market Specialist. Updated 15 September 2026. Read our editorial policy and research methodology.
Reviewed by Omar Al Mansouri · Transaction evidence checked 15 September 2026
The useful question is not whether an advertisement says 8%. It is whether a specific ready unit can support the required annual rent at the agreed purchase price after service charges, vacancy, maintenance, management and transaction costs.
This page owns the exact 8% threshold question. The broader high-yield-area guide remains the primary comparison of Dubai communities and should be used when the investor has not fixed an 8% hurdle.
Current communities clearing the 8% gross screen
| Community / scope | Gross PSF screen | Window | Closed sales | New rentals | Confidence |
|---|---|---|---|---|---|
| Deira / all | 10.44% | 6 months | 37 | 6,792 | Medium |
| Al Qusais 1 / all | 10.29% | 12 months | 82 | 3,185 | Medium |
| Remraam / all | 8.40% | 6 months | 87 | 374 | Medium |
| Discovery Gardens / apartments | 8.20% | 6 months | 486 | 1,632 | High |
The formula is median annualised new-contract rent per square foot divided by median closed-sale price per square foot for the selected community, scope and evidence window. It does not pair the same unit's rent and purchase price, so it is a screening signal rather than a property quotation.
Official source: Real Estate DataMedium confidence requires at least 30 usable closed sales and 30 usable new rental contracts; high confidence requires at least 100 of each. Formula V3 suppresses results outside a 2%–12% plausibility range.
An 8% community benchmark is not an 8% unit yield
| Input | Use | Reject or investigate when |
|---|---|---|
| Purchase price | Agreed price plus relevant acquisition costs | Only an asking price or launch headline is available |
| Achievable rent | Recent comparable new contracts | Evidence is renewal rent, short-term revenue or a different unit type |
| Unit match | Same building, bedrooms, size, furnishing and condition | The community median hides a materially different product |
| Recurring costs | Current project service charge, maintenance, vacancy and management | A seller or broker assumes every missing cost is zero |
| Status | Ready unit that can legally be let, or a dated future scenario | Projected rent is presented as income already being earned |
Worked example: gross 8.4% can become 6.4% before finance and tax
| Item | AED | Treatment |
|---|---|---|
| Purchase price | 1,000,000 | Hypothetical denominator |
| Annual rent | 84,000 | Produces 8.4% gross yield |
| Service charge | 12,000 | Hypothetical; replace with live project figure |
| Maintenance allowance | 3,000 | Hypothetical |
| Vacancy/letting allowance | 5,000 | Hypothetical |
| Simplified net operating income | 64,000 | Before finance, tax and acquisition/disposal costs |
| Simplified net yield | 6.4% | 64,000 / 1,000,000 × 100 |
DLD's Service Charge Index is the place to check the RERA-approved service charge by project, use and year. Do not substitute a community average for the target building.
Official source: Service Charge IndexDecision rule for an investor targeting 8%
- Set the hurdle as net operating yield if recurring cash income is the real objective.
- Require building- and unit-level rent evidence; use this community table only to choose where to investigate.
- Stress rent down, vacancy and maintenance up, and include the exact service charge.
- Verify property and title status before treating a marketed unit as rentable and transferable.
- Reject the deal if it reaches 8% only through an unsupported rent, undisclosed cost or guaranteed appreciation claim.
Frequently asked questions
Is the 8% figure gross or net?
The community screen is gross. Net yield requires the target property's service charge, maintenance, vacancy, management and other recurring costs. Finance, acquisition, disposal and investor-specific tax are separate.
Does every property in Deira or Al Qusais 1 yield above 10%?
No. The figures are unpaired community medians. Building, unit, condition, tenancy, purchase price and costs can produce a very different result.
Why use new rental contracts?
A new-contract set is more relevant to the rent a newly acquired vacant unit may seek than a renewal set, but it still must be matched to the exact building and unit.
Can an off-plan unit have a current rental yield?
An unfinished unit has no achieved unit rent. Any post-handover yield is a scenario and should be labelled as projected, with the project status and assumptions checked separately.
Official source: Project Status EnquiryPrimary-source register
Official pages used for this review
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Important: Community yield figures are screening calculations, not valuations, rental guarantees or investment advice. Verify the exact unit, current rent evidence, service charge, legal status and all costs before deciding.
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