Gross yield sells the deal. Net yield is the deal. The single largest, most predictable gap between the two in Dubai is the annual service charge — and it is the line item that newer investors most consistently underestimate. A unit advertised at an 8% gross yield can quietly deliver 5% net once you account for it.

What a service charge actually is

The service charge is the annual fee, billed per square foot, that funds the maintenance of the building and its shared facilities — security, cleaning, lifts, pools, gyms, chillers, and the building's reserve fund. In Dubai it is regulated and the rates are published; every owner pays it whether or not the unit is occupied. It is not optional, and it does not pause when your tenant moves out.

The range is enormous

Service charges in Dubai run from roughly AED 8-15 per sqft in efficient mid-tier communities to AED 25-35+ per sqft in amenity-heavy prime towers and branded residences. On a 1,000 sqft 2BR, that is the difference between an AED 10,000 and an AED 30,000 annual cost — a AED 20,000 swing that comes straight off your net income every single year.

A trophy tower with a 'resort-style' amenity deck is selling you the amenity deck every year, forever, through the service charge. Make sure the rent premium actually covers it — frequently it does not.

How to check before you buy

  1. Ask for the exact current AED/sqft service charge for the specific building — not the community average.
  2. Multiply by the unit's actual built-up area and subtract it from your gross rent to get a true net figure.
  3. Check the trend: service charges drift upward. A building with a weak reserve fund will hit owners with special assessments.
  4. Compare the charge against the rent premium. If two districts rent similarly but one charges AED 20/sqft more, its net yield is structurally lower.

Why this is built into the Intelligence Score

Reaisale's rental-yield estimate is a modelled figure, and like any model it is an approximation — but the reason we surface it prominently is precisely so that the headline gross number never travels alone. When you shortlist a unit, treat the service charge as a first-class diligence item, on the same level as price and location. It is the most controllable mistake in the entire Dubai buy process.

Generate a free Deal Passport on any listing — the intelligence memo flags the building tier and the service-charge consideration for that unit, then connects you with the agent. Free.