When a client asks you "What's the rental yield in Business Bay?" and you answer with a confident, precise number backed by real data, you instantly stand out from 90% of brokers who guess or give vague ranges.
This guide gives you exact rental yield figures for every major Dubai area in 2025, based on actual DLD transaction data and EJARI rental registrations. Bookmark this page. You'll use it every day.
How We Calculate Rental Yield
Before diving into the numbers, let's clarify the methodology. There are two types of yield:
Gross Yield vs Net Yield
- Gross Yield: (Annual Rent ÷ Property Price) × 100
- Net Yield: ((Annual Rent - Annual Expenses) ÷ Total Investment) × 100
This guide shows Gross Yields for easy comparison. For net yields, subtract approximately 1.5-2% for service charges, maintenance, and vacancy.
All data in this guide comes from official DLD sales transactions (for property prices) and EJARI rental registrations (for actual rental values). These are real numbers, not listing prices or AI estimates.
🏆 Top 10 Dubai Areas by Rental Yield (2025)
Here's the quick reference table. Detailed breakdowns for each area follow below.
| Rank | Area | Avg Yield (Apartments) | Avg Yield (Villas) |
|---|---|---|---|
| 1 | Discovery Gardens | 9.2% | N/A |
| 2 | International City | 8.8% | N/A |
| 3 | Dubai Silicon Oasis | 8.1% | 6.2% |
| 4 | Jumeirah Village Circle (JVC) | 7.5% | 5.8% |
| 5 | Dubai Sports City | 7.3% | 5.5% |
| 6 | Business Bay | 6.8% | N/A |
| 7 | Dubai Marina | 6.2% | N/A |
| 8 | Jumeirah Lake Towers (JLT) | 6.1% | N/A |
| 9 | Dubai Hills Estate | 5.8% | 4.5% |
| 10 | Downtown Dubai | 5.2% | N/A |
Data based on Q4 2025 transactions. Yields may vary by building, floor, and unit size.
Detailed Area Breakdowns
1. Discovery Gardens (9.2% Yield)
Why it tops the list: Discovery Gardens offers the highest yields in Dubai because of its low entry prices combined with stable rental demand from mid-income tenants. The area is popular with families and professionals working in Jebel Ali and Dubai South.
Discovery Gardens Key Metrics
- Avg. Price/sqft: AED 550-650
- 1BR Apartment Price: AED 350,000-450,000
- 1BR Annual Rent: AED 35,000-42,000
- Tenant Profile: Families, mid-level professionals
- Vacancy Rate: Low (high demand)
Broker Tip: Best buildings include Mediterranean, Zen, and Mogul clusters. Avoid units facing the highway for noise concerns.
2. International City (8.8% Yield)
International City has long been Dubai's budget-friendly option. While it lacks premium amenities, the math works exceptionally well for yield-focused investors.
International City Key Metrics
- Avg. Price/sqft: AED 400-500
- Studio Price: AED 180,000-250,000
- Studio Annual Rent: AED 18,000-22,000
- Tenant Profile: Bachelor workers, budget-conscious renters
- Vacancy Rate: Moderate
Broker Tip: Dragon Mart proximity is a plus. England, France, and Spain clusters have better maintenance. Watch out for older buildings with high service charges.
3. Jumeirah Village Circle - JVC (7.5% Yield)
JVC is the sweet spot for many investors. It offers excellent yields while still being a desirable residential area with good infrastructure, parks, and community feel.
JVC Key Metrics
- Avg. Price/sqft: AED 850-1,100
- 1BR Apartment Price: AED 650,000-850,000
- 1BR Annual Rent: AED 55,000-65,000
- Villa (3BR) Price: AED 1.8M-2.5M
- Villa Annual Rent: AED 120,000-150,000
- Tenant Profile: Young families, professionals
Broker Tip: Buildings with pool, gym, and covered parking command 10-15% rental premiums. District 10-14 are most popular. New handovers in 2024-2025 are performing well.
4. Business Bay (6.8% Yield)
Business Bay combines strong yields with excellent capital appreciation potential. Its central location and ongoing infrastructure improvements make it a favorite for both investors and end-users.
Business Bay Key Metrics
- Avg. Price/sqft: AED 1,400-1,800
- 1BR Apartment Price: AED 1.1M-1.5M
- 1BR Annual Rent: AED 80,000-100,000
- Tenant Profile: Executives, business professionals
- YoY Appreciation: +18%
Broker Tip: Canal-facing units command 20-25% premium. Executive Towers, The Opus, and Paramount are top performers. Avoid buildings with ongoing construction nearby.
5. Dubai Marina (6.2% Yield)
Dubai Marina is the gold standard for lifestyle living. While yields are moderate, the area offers unmatched liquidity. Properties here typically sell within 30-45 days.
Dubai Marina Key Metrics
- Avg. Price/sqft: AED 1,500-2,000
- 1BR Apartment Price: AED 1.3M-1.8M
- 1BR Annual Rent: AED 85,000-110,000
- Tenant Profile: Expat professionals, tourists (short-term)
- Liquidity Score: Very High
Broker Tip: Marina view vs city view makes a 15-20% difference in rent. Best towers include Princess Tower, Cayan, and Marina Gate. Holiday homes can boost yields to 8-9% but require more management.
6. Downtown Dubai (5.2% Yield)
Downtown commands the highest prices in Dubai, which compresses yields. However, investors here benefit from prestige, strong capital appreciation, and access to the wealthiest tenant pool.
Downtown Dubai Key Metrics
- Avg. Price/sqft: AED 2,200-3,500
- 1BR Apartment Price: AED 1.8M-2.8M
- 1BR Annual Rent: AED 100,000-140,000
- Tenant Profile: HNWIs, senior executives, celebrities
- Prestige Factor: Highest in Dubai
Broker Tip: Burj Khalifa and Fountain views are non-negotiable for premium tenants. Address Downtown and Opera Grand are top earners. Short-term rentals can push yields to 7-8% but are heavily regulated.
Yield vs Appreciation: Which Matters More?
This is the million-dirham question every investor asks. Here's how to advise clients:
| Investor Type | Priority | Recommended Areas |
|---|---|---|
| Cash Flow Investor | Yield first | JVC, Discovery Gardens, DSO |
| Growth Investor | Appreciation first | Downtown, Business Bay, Dubai Hills |
| Balanced Investor | Both matter | Dubai Marina, JLT, Business Bay |
| Luxury Investor | Prestige + appreciation | Palm Jumeirah, Downtown, Emirates Hills |
"The best investors understand that high yield often means lower appreciation, and vice versa. The key is matching the property to the investor's actual goals."
Common Mistakes Brokers Make with Rental Yields
Mistake 1: Using Listing Prices Instead of Transaction Prices
Listings are aspirational. A property listed at AED 2M might sell for AED 1.7M. Using listing prices inflates the denominator and gives clients a false yield picture.
Mistake 2: Ignoring Service Charges
A 7% gross yield in a building with AED 25/sqft service charges is very different from 7% in a building with AED 12/sqft charges. Always factor in OPEX.
Mistake 3: Not Accounting for Vacancy
Even the best properties have vacancy periods between tenants. Standard practice is to assume 5% vacancy (about 2-3 weeks per year).
Mistake 4: Comparing Apples to Oranges
A studio yield cannot be compared to a 3BR yield directly. Studios typically have higher yields but lower absolute returns. Always segment your analysis by unit type.
How to Present Yield Data to Investors
Here's a pro tip that separates elite brokers from average ones:
The 3-Number Pitch
When presenting yield data to investors, always give three numbers:
- Gross Yield: The headline number (e.g., 7.5%)
- Net Yield: After service charges and maintenance (e.g., 5.8%)
- Cash-on-Cash Return: If using mortgage (e.g., 12% with 25% down)
This shows you understand advanced financial modeling and builds instant credibility.
2025 Yield Trends to Watch
Rising Yield Areas
- Dubai South: Expo legacy and airport proximity driving demand
- Town Square: Affordable community gaining traction
- Arjan: New developments with competitive yields
Stable Yield Areas
- Dubai Marina: Mature market, consistent demand
- JLT: Well-established tenant base
- Business Bay: Corporate demand remains strong
Compressing Yield Areas
- Downtown: Prices rising faster than rents
- Palm Jumeirah: Luxury segment seeing price surge
- Dubai Hills: High demand pushing prices up
Get Building-Level Yield Data
This article provides area-level averages, but smart brokers know that yields vary significantly building by building. Two towers in the same area can have 2-3% yield difference based on:
- Service charge levels
- Building age and condition
- Amenities and facilities
- Management quality
- View and floor level
To access building-specific yield data based on actual DLD transactions and EJARI registrations, FalconPro provides granular analytics for over 4,662 buildings across Dubai.