DLD transfer fee
one-off4% of the purchase price to the Dubai Land Department — the largest single acquisition cost. Sometimes split with the seller by negotiation.
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Finance guide
A listing's gross yield is the number before reality. Service charges, cooling, management, maintenance, and vacancy all sit between gross and the net yield that actually lands in your account. Here are the costs to model — and how to work back to the figure that matters.
Paid once at purchase — but they raise your true cost basis and so lower the yield from day one.
4% of the purchase price to the Dubai Land Department — the largest single acquisition cost. Sometimes split with the seller by negotiation.
Typically ~2% + VAT of the price to the broker on a secondary purchase.
DLD admin / trustee-office fees, title-deed issuance, and NOC fees. A few thousand AED in total.
Bank arrangement fee (~1%), valuation, and a 0.25% DLD mortgage-registration fee on the loan amount.
The annual + variable drags that turn gross yield into net.
AED per sq ft per year set by the building, covering common areas, security, and amenities. The single biggest recurring cost — see the service-charge guide.
Where billed separately, a fixed capacity charge plus consumption. Can be a major line in cooling-heavy towers.
If you use a manager: typically 5-10% of annual rent for tenant-finding, rent collection, and coordination.
Budget a reserve (often ~1% of value per year) for wear, appliances, and snagging — higher for older or villa stock.
Building cover is often inside service charges; contents + landlord liability are extra and modest.
The rent you DON'T collect between tenants. Even a few weeks a year measurably lowers the realised yield.
Gross yield = annual rent ÷ purchase price. This is the headline figure listings quote — and the one that flatters.
Take out service charges, cooling (if separate), management, a maintenance reserve, and insurance from the annual rent.
Reduce rent for realistic void periods — e.g. assume 11 months collected, not 12, unless you have strong evidence otherwise.
Net yield = net annual income ÷ (price + one-off acquisition costs). This is the number to compare across properties and against alternatives.
After service charges, management, and vacancy, a headline gross yield can drop by a quarter or more. Always underwrite on net, never gross.
Two units at the same price can have very different service charges depending on amenities. Always pull the building's per-sq-ft rate before buying.
The 4% DLD fee plus agency and registration add several percent to your real cost basis — and therefore lower the true yield on day one.
A separately-billed district-cooling capacity charge is a recurring drag whether or not the unit is occupied. Factor it into both owner and tenant economics.