Dubai rental yields vs London, New York and Singapore: what the data actually shows

By Ansh Virmani, CEO10 February 2026Investing

"Dubai yields are higher" is the most repeated claim in UAE property marketing. It also happens to be true, but the useful version of the claim is specific: higher by how much, in which districts, and why.

The comparison

Khaleej Times, reporting on regional data as the GCC property surge rolled into 2026, noted that Dubai's yields remain among the world's highest, and highly attractive compared with global peers such as London, New York and Singapore, where average residential yields typically range between 3% and 5%. The same report singled out Jumeirah Village Circle, Business Bay and Dubai South as districts generating gross yields of between 7% and 9%.

Why the gap exists

Savills' Dubai research on rent and yield points to the structural reasons rather than a temporary anomaly. Three stand out:

• Population growth is rental demand. Dubai's resident population has been growing at a pace few developed cities match, and most new arrivals rent before they buy.
• Entry prices are still lower per square foot than the prime districts of London, New York or Singapore, so the same rent produces a higher yield on capital.
• No income tax on rent. A 7% gross yield in Dubai is a 7% gross yield. In most comparison cities the landlord's net figure is reduced by income tax before service charges are even counted.

The catch: gross is not net

The number that matters to you is the net yield after service charges, vacancy, management and maintenance. Service charges vary enormously between towers in the same district. A 8% gross yield in a building with high service charges and long void periods can net less than a 6% gross yield next door. This is why we never recommend on district averages; we underwrite the specific unit.

A simple net-yield check

Even after those deductions, 5.3% net and tax-free compares well with a 3% to 5% gross figure elsewhere. But the exercise shows why two units with the same gross yield can be very different investments.

Where we look first for yield

For yield-first briefs we start with the districts Khaleej Times names, JVC, Business Bay and Dubai South, then filter by tower: service charge per square foot, achieved rents in the building over the last twelve months, and time-to-let. The shortlist we send carries all three numbers.

Three questions clients ask

Are yields falling as prices rise?

Yields compress when prices outrun rents. In Dubai rents have kept pace because population growth feeds the rental market directly, so gross yields have held better than in most rising markets.

Do smaller units yield more?

Usually, on a gross basis. Studios and one-bedrooms yield more than larger units but turn over more often, so vacancy and re-letting costs need to be included in the net figure.

Short-let or long-let?

Short-let can gross more in tourist districts but carries higher costs, management and regulation. We underwrite every unit on a long-let basis first and treat short-let upside as a bonus, not the base case.

Ansh Virmani

CEO of TVG Realtors and The Virmani Group. Boston University mathematics and economics graduate, licensed Dubai broker and Country Director of BRICS CCI UAE. He publishes weekly at virmaniviews.com.

TVG Realtors is an independent brokerage. Market figures are quoted from the named third-party sources as published on the dates cited and may have been revised since. Nothing here is investment, legal or tax advice.