What will you earn renting it out?
Long-term tenants or holiday lets, the rules for each, and what's left after service charges.
On Yas, Saadiyat and Al Reem, advertised gross yields run from about 3.5% to 6.3%, and higher in Masdar City and Al Reef, at around 7.6% and 8.9%. [1] After service charges and empty months, expect noticeably less. Every lease must be registered on Tawtheeq, and holiday lets need a licence.
What yields can you expect?
Average gross yields from Bayut's asking-price data for the first half of 2026: [1]
| Area and home type | Gross rental yield |
|---|---|
| Al Reem Island apartments | 6.34% |
| Yas Island apartments | 5.94% |
| Yas Island villas | 5.00% |
| Saadiyat Island villas | 4.32% |
| Saadiyat Island apartments | 3.51% |
"Gross" means rent divided by price, before any costs. It's a starting point, not what you'll take home.
What's left after costs?
A worked example: a 1,000 sq ft Al Reem apartment bought for Dh1.69 million.
| Per year | |
|---|---|
| Rent at a 6.34% gross yield | Dh107,000 |
| Service charge at Dh35 per sq ft [4] | minus Dh35,000 |
| Left before other costs | Dh72,000 (about 4.3%) |
Agency fees, maintenance and any empty months come off that too. Service charges on Al Reem usually run Dh25 to Dh45 per sq ft, so the building you pick matters. [4]
How does renting to a tenant work?
Can you let it as a holiday home?
Yes, with a licence from the Department of Culture and Tourism (DCT). [3]
No licence, no listing
Holiday homes can't be listed on any website or app without a valid DCT licence, and the licence number must be shown on the listing. [3]
Who can apply
Owners, joint owners, companies, tenants and people authorised by the owner. [3]
What you need
An insurance certificate covering that specific unit, plus a one-time sign-up fee and a yearly licence fee. [3]
What's the catch?
Read these before you sign anything.
Empty months cost you.
Every month without a tenant is a month of service charges with no rent. Budget for some.
Holiday lets are hands-on.
Cleaning, check-ins and guest messages take time, or a management company takes a cut. Bookings also drop in the summer.
Advertised yields run high.
They're based on asking prices and asking rents. Check what similar homes in the same building actually rent for.
Service charges decide your real return.
Two flats with the same rent can earn very different amounts after charges. Ask for the last two years' bills before you buy.
What should you read next?
Three guides that follow on from this one.
See all guides
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