The short answer
Gross yield divides annual rent by the purchase price. Net yield deducts recurring costs such as service charges, management and vacancy, then uses the full acquisition cost as the basis. It is usually lower, but it is the figure that lets an owner compare buildings honestly.
What is the difference between gross and net rental yield?
Gross yield uses two inputs: annual rent and purchase price. It is quick to calculate and easy to place on a listing card.
Net yield starts with the same rent, then includes the costs that keep accruing after completion. In Dubai, service charges are often the largest recurring line. Vacancy, management and acquisition costs matter as well.
The comparison
A property can look strong on a gross-yield basis and become ordinary once its service-charge budget and realistic vacancy are applied. That does not make the purchase wrong; it makes the assumption visible.
The unit is not the only asset. The operating characteristics of its building are part of what you are buying.
What to ask before you buy
Ask for the approved service-charge budget, not a verbal range. Confirm whether master-community charges are included. Compare actual registered rents, not only advertised rents.
- What is the current approved AED-per-square-foot charge?
- Does it include master-community charges?
- What did comparable units actually register on Ejari?
- Is a reserve-fund top-up or special levy proposed?
- How long do comparable units take to sell?
Information only. Rates, requirements and building records change. Confirm the current position with the responsible authority and the specific building documentation before relying on a decision.
Make the inputs visible