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Rental Yield & ROI Calculator

Enter a purchase price, expected rent, and service charge to see gross and net yield instantly — then check whether that rent is realistic for the district.

Indicative gross yield in Al Reem Island: 6.5–8.5%.

6.8%

Gross yield

5.9%

Net yield

AED 83,000

Net income / yr

30%

5-yr net cash return

Your gross yield vs the indicative Abu Dhabi range

4%9.5%

Gold marker = your yield · shaded band = indicative Al Reem Island range.

Is AED 95,000 a realistic rent for Al Reem Island?

  • · Every recorded sale in Al Reem Island, filterable by type and size
  • · Your yield measured against actual ADREC transactions — not a model
  • · A branded yield snapshot you can send your client
See the registry-grade numbers

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Your inputs produce real arithmetic. The district ranges are indicative planning context, not live ADREC data, and nothing here is investment advice. Knownable's data is registry-grade — your figure checked against recorded transactions.

A rental yield calculator shows the annual return on a rental property as a percentage of its price. Gross yield is annual rent divided by purchase price; net yield subtracts the real running costs — service charges, management, maintenance and vacancy — and is the figure that reflects what you actually keep.

Gross yield versus net yield

Gross yield is the simple headline: annual rent divided by the price you paid, as a percentage. It is useful for a quick comparison between properties but flatters the return, because it ignores every cost of ownership. In Abu Dhabi, apartment gross yields commonly sit in the 6 to 8 per cent range, higher than most prime islands but before any deductions.

Net yield is what matters. From the annual rent, subtract the service charge (a meaningful cost in amenity-heavy towers, charged per square foot), property or agency management fees, maintenance, and an allowance for vacancy between tenants. Divide what remains by the price. A tower with a high gross yield but a heavy service charge can net less than a plainer building — which is why the service charge belongs in the sum, not as an afterthought.

Reading the number honestly

A yield is only as good as the rent and price behind it, and both should be checked against evidence rather than asking figures. Recorded ADREC sale prices anchor the denominator, and comparable achieved rents — not headline listing rents — anchor the numerator. An optimistic rent over an optimistic price can produce a yield that never materialises.

Yield is also only part of the return. Capital appreciation, financing cost if you borrow, and liquidity when you sell all sit alongside it. A high-yield apartment in an oversupplied district may underperform a lower-yield home in a supply-constrained one once appreciation and exit are counted. Use the yield to compare income, not to judge the whole investment.

Frequently asked questions

What is a good rental yield in Abu Dhabi?

Apartment gross yields in Abu Dhabi commonly run in the 6 to 8 per cent range, among the stronger figures in the region, though villas typically yield less because their prices are higher relative to rent. The number that matters is net yield, after service charges and other running costs, which is meaningfully lower than the gross headline.

How do I calculate rental yield?

Gross yield is annual rent divided by the purchase price, expressed as a percentage. Net yield subtracts running costs — service charge, management, maintenance and a vacancy allowance — from the annual rent before dividing by the price. Anchor the price to recorded sale evidence and the rent to comparable achieved rents rather than optimistic listing figures.

What is the difference between gross and net rental yield?

Gross yield uses rent and price only, so it is quick but overstates the return by ignoring costs. Net yield deducts the real costs of ownership — chiefly the service charge, plus management, maintenance and vacancy — and is what you actually earn. In amenity-heavy Abu Dhabi towers the gap between the two can be large.

Should I choose the highest-yield property?

Not on yield alone. A high gross yield can hide a heavy service charge, an oversupplied location that caps rent growth, or weak resale liquidity. Yield measures income; capital appreciation, financing cost and how easily you can sell all matter too. Use yield to compare income between similar options, then weigh the rest before deciding.

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