What is ROI for property
ROI (Return on Investment) is the ratio of annual rental income to the property purchase price. Formula: ROI = (Annual rent — Costs) / Property value × 100%.
Average rental ROI in Dubai 2026
Studios and 1BR in JVC and Sports City: 7–9% per year. Marina and Downtown apartments: 5–7%. Villas in suburban communities: 4–6%. Dubai remains one of the highest-yielding rental markets among global cities.
Costs to factor in
- Service charge: 10–25 AED per m² per year
- Property insurance: 1,000–3,000 AED per year
- Property management (through agent): 5–10% of rent
- Maintenance and repairs: 2,000–8,000 AED per year
- Vacancy between tenants: budget for 1 month per year
Example calculation
1BR apartment in JVC purchased for 800,000 AED. Annual rent 65,000 AED. Annual costs 15,000 AED. Net income 50,000 AED. ROI = 50,000 / 800,000 × 100% = 6.25%.
How to increase ROI
Quality renovation increases rental rates by 10–20%. Furnishing raises achievable rent. Professional maintenance reduces vacancy periods. Dubai Vista helps keep properties in the condition that maximises rental income.