What the yield looks like after service charges
Verified September 2026 · General information only · 4 min read
Dubai’s advertised rental yields are real. A mid-market apartment renting at 6 to 8 per cent gross is normal, not a marketing outlier, and it is the main reason Australians look at the market in the first place. The number that decides whether that yield holds up is the service charge, and it is worth understanding before you compare buildings, because it is also the number that separates a good purchase from a great one.
What a service charge is, and what it buys
Every building in Dubai charges owners an annual fee, set per square foot, to run the pool, gym, lobby, security, lifts, cooling plant and common areas. It is the equivalent of an Australian strata levy, and it is published per building by the Dubai Land Department, so it is a known figure before you buy, not a surprise after.
Typical figures in September 2026 sit between AED 15 and 25 per square foot a year. A well-run tower at AED 15 and a luxury tower with a large pool deck at AED 25 can sit on the same street; the lower charge, all else equal, is money straight into your net yield.
The arithmetic, on a real example
Take an 850 square foot one-bedroom apartment bought for AED 1,600,000 and renting at AED 110,000 a year, a gross yield of 6.9 per cent.
- Service charge at AED 20 per square foot: AED 17,000
- Property management at 5 per cent of rent: AED 5,500
- Maintenance, insurance and registration allowance: AED 4,000
Net rent: AED 83,500, which is a net yield of about 5.2 per cent on the price, received in full with no UAE income tax deducted. Pick a building at AED 15 per square foot instead and the net yield moves to roughly 5.5 per cent; the service charge alone is worth a quarter of a point of yield.
For context, an apartment in an Australian capital city typically returns a gross yield in the 3 to 4.5 per cent range before strata, rates and land tax. Dubai’s net figure after service charges is still ahead of most Australian gross figures, which is the comparison that matters.
Three things that lift the net yield
Choose the building on the charge, not the brochure. Two towers with similar rents and a AED 8 per square foot difference in service charge are AED 6,800 a year apart on our example. We pull the published charge for every shortlisted building and put it in the comparison.
Furnished and short-let, where the building allows it. Furnished units and holiday-let licences can lift gross rent well above the long-let figure in the right locations, with the trade-off of higher management costs. Worth modelling, building by building.
Buy where charges are stable. Newer master-planned communities publish predictable charges; older towers with ageing cooling plant can see increases. The DLD history shows the trend.
How we help
Our written brief shows every shortlisted property as a net figure: rent, service charge, management, allowance, in AED and Australian dollars, so the comparison is between real returns rather than advertised ones.
Bring a listing you like and we will run the net yield on it.
Questions Australians ask
What is a typical service charge in Dubai?
Between about AED 15 and 25 per square foot a year in September 2026, set per building and published by the Dubai Land Department.
What net yield can I expect on a Dubai apartment?
On a mid-market apartment renting at around 6.9 per cent gross, a typical net yield after service charges, management and maintenance is about 5 to 5.5 per cent, received with no UAE income tax deducted.
Who pays the service charge, the owner or the tenant?
The owner. It is the Dubai equivalent of an Australian strata levy and is the main running cost of the property.
How do Dubai yields compare with Australia?
Dubai's net yield after service charges is typically still above the gross yield of an apartment in an Australian capital city, which usually sits in the 3 to 4.5 per cent range.
Olive Wealth Consultancy FZ-LLC provides research, consultancy and purchase project management. We are not a licensed mortgage broker and do not arrange credit, and we are not a licensed financial or tax adviser. Lending criteria, rates, fees and market figures change without notice; figures are indicative and current at September 2026. Obtain independent, appropriately licensed advice before acting.