7 best Dubai areas for rental yield in 2026, and the net math

7 best Dubai areas for rental yield in 2026, and the net math

Discovery Gardens, International City and Dubai Silicon Oasis lead Bayut's H1 2026 projected apartment ROIs. The seven highest areas, and how gross becomes net.

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Disclaimer: This article is for general informational purposes only. It is based on cited public data and published under Lida Moghaddam's RERA-licensed masthead. It is not financial, legal, or investment advice. Dubai's property market moves quickly, so figures, yields, and rules may change or become outdated by the time you read this. Verify current information with the relevant authority or a qualified professional before acting. Read the full disclaimer.

Table of contents

In Bayut's H1 2026 sales report, the highest projected apartment ROIs among Dubai's popular areas are Discovery Gardens at 9.06%, International City at 8.79% and Dubai Silicon Oasis at 8.23%, followed by Dubai Sports City, Al Furjan, Town Square and Dubai South. Those are gross figures built on advertised prices; the net return on one apartment depends on its service charge, management and vacancy.

Last verified: 24 October 2026. Checked by the publication's independent check, 24 October 2026.

The 2026 yield ranking

The ranking below follows one rule: the seven highest projected apartment ROIs in Bayut's H1 2026 sales report, which covers the most searched-for communities in each price segment. Bayut publishes average one-bedroom asking prices for some of them, shown where available.

RankAreaBayut segmentProjected apartment ROI, H1 2026Average one-bedroom asking price
1Discovery GardensAffordable9.06%Not published
2International CityAffordable8.79%Not published
3Dubai Silicon OasisAffordable8.23%AED 863,000
4Dubai Sports CityAffordable8.12%AED 837,000
5Al FurjanMid-tier7.69%Not published
6Town SquareMid-tier7.45%Not published
7Dubai SouthAffordable7.24%AED 827,000
–Jumeirah Village CircleMid-tier7.15%AED 1,146,000
–ArjanMid-tier7.10%AED 1,170,000

Source: withlida.com, 24 October 2026, from Bayut's Dubai Sales Market Report for H1 2026, published 9 July 2026 and updated 15 October 2026. Projected ROI as labelled by Bayut; the rank is the publication's ordering of Bayut's figures.

For comparison, the luxury and prime apartment areas in the same report run from Sobha Hartland at 6.41%, Dubai Hills Estate at 6.30% and Dubai Marina at 5.88% to Downtown Dubai at 5.46% and Palm Jumeirah at 4.48%. A buyer who weights capital value and location over income reads that end of the table; a buyer chasing rent reads the top.

What Bayut's projected ROI measures

Bayut's report is built on prices advertised by agencies on Bayut, not on completed sales, and its price metrics use a trimmed mean to reduce the influence of extreme values. The report adds that projected ROIs "may vary depending on the location of the building/unit, its developer and the amenities offered" (Bayut, H1 2026).

That makes it an advertised-market benchmark. DXBinteract computes area yields from registered DLD transactions, and Property Monitor publishes its own series, so the same area can carry two valid figures; the rental-yield sources guide sets out why they should sit side by side rather than be averaged.

The seven areas, by best fit

1. Discovery Gardens – best for the highest projected apartment ROI in the report

Discovery Gardens tops Bayut's affordable apartment segment and the whole report at 9.06%. The Discovery Gardens area guide covers its apartments, rents and the moving-in costs a landlord's tenant will face.

2. International City – best for a low entry point with a high projected return

International City follows at 8.79% for apartments, and its villas show 5.66% in the same report. The International City guide sets out its clusters and how to compare them.

3. Dubai Silicon Oasis – best for an affordable apartment with a published price benchmark

Dubai Silicon Oasis leads Bayut's affordable segment by popularity, with a projected ROI of 8.23%, an average asking price of AED 1,086 per sq ft and an average one-bedroom asking price of AED 863,000. The Dubai Silicon Oasis guide covers its housing, schools and daily routine.

4. Dubai Sports City – best for an 8%-plus projected return below AED 840,000

Dubai Sports City shows 8.12%, with an average one-bedroom asking price of AED 837,000 and AED 1,083 per sq ft. The Dubai Sports City guide compares its apartments, villas and family costs.

5. Al Furjan – best for the highest projected return in the mid-tier segment

Al Furjan records the mid-tier segment's highest apartment ROI at 7.69%. Bayut points to its established connectivity, including the Al Furjan Metro station, and its villas also lead the mid-tier villa table by popularity. The Al Furjan guide sets out its homes by buyer profile.

6. Town Square – best for a mid-tier community yield above JVC's

Town Square shows 7.45% in Bayut's mid-tier apartment ranking, ahead of Jumeirah Village Circle's 7.15%; the figure covers its apartment listings.

7. Dubai South – best for the affordable segment's lowest one-bedroom asking price

Dubai South shows 7.24% with an average one-bedroom asking price of AED 827,000, the lowest of Bayut's three affordable leaders, and its average asking price per sq ft rose 3.27% over H1 2026, the most of the three. The Dubai South guide covers its residential districts and status.

Just below the seven: Jumeirah Village Circle, the most popular mid-tier area, shows 7.15% with an average one-bedroom asking price of AED 1,146,000, and Arjan 7.10% at AED 1,170,000.

If the plan is a villa

Villa yields run lower than apartment yields across the report. The highest projected villa ROIs by segment are Al Barari (ultra-luxury) at 6.37%, DAMAC Lagoons (mid-tier) at 6.09%, Jumeirah Golf Estates (luxury) at 6.04% and DAMAC Hills 2 (affordable) at 5.97%, with Jumeirah Village Circle's villas at 6.04% in the mid-tier table (Bayut, H1 2026).

From gross to net: a worked example

Gross yield divides annual rent by the price before any costs; net yield deducts the owner's running costs first. The example uses Bayut's H1 2026 averages for a JVC one-bedroom apartment, the service charge rate on one 2026 DLD record, and two illustrative inputs to replace with the property's own.

LineAmountBasis
PriceAED 1,146,000Bayut H1 2026 average one-bedroom asking price, JVC
Annual rentAED 79,000Bayut H1 2026 rental report average one-bedroom asking rent, JVC
Gross yield6.9%79,000 ÷ 1,146,000
Service chargeAED 12,511780 sq ft (the price at JVC's average AED 1,470 per sq ft) × AED 16.04 per sq ft, the rate on one 2026 DLD Service Charge Index record
ManagementAED 3,950Illustrative: 5% of rent
VacancyAED 6,583Illustrative: one month's rent
Net rentAED 55,956Rent minus the three costs
Net yield4.9%55,956 ÷ 1,146,000

Source: withlida.com, 24 October 2026, calculated from the linked Bayut reports and DLD record. The asking price and rent describe different listings, so their ratio is an area-level illustration, not one apartment's return.

Two points follow. The service charge is the largest single deduction, and it is set per building, so the actual building's approved rate changes the answer. And adding purchase costs to the denominator, such as the DLD transfer fee, lowers the net yield further: DLD lists 2% for the seller and 2% for the buyer of the sale value, with the parties' allocation recorded in the sale contract (DLD sale registration, as of October 2026).

How to check a yield before buying

  1. Match the source and period. Compare areas within one report, such as Bayut's H1 2026 table, and keep its date with the figure.
  2. Price the actual apartment. Registered sale and rent records for the area and project are on DXBinteract and Property Finder's transaction pages, both drawn from DLD data.
  3. Read the building's service charge. DLD's Service Charge Index shows the RERA-approved rate by property and year; the service charge guide explains how to read it.
  4. Check the rent rules. Renewal increases are capped by the RERA rental index; the rent increase rules guide sets out how the cap works.
  5. Set your own vacancy and management inputs, then rerun the net calculation above with them.

Frequently asked questions

Which Dubai area has the highest rental yield in 2026?

In Bayut's H1 2026 sales report, Discovery Gardens shows the highest projected apartment ROI among the areas covered, at 9.06%, followed by International City at 8.79% and Dubai Silicon Oasis at 8.23%. Other sources, such as DXBinteract's registered-transaction yields, can rank areas differently because they measure differently.

What is a good rental yield in Dubai?

The H1 2026 benchmarks run from 4.48% projected ROI for Palm Jumeirah apartments to 9.06% for Discovery Gardens in Bayut's report. Whether a yield suits a buyer depends on the net figure after the building's service charge, management and vacancy, and on how much weight the buyer gives capital value against income.

What's the difference between gross and net rental yield?

Gross yield divides annual rent by the purchase price before any costs. Net yield first deducts the owner's running costs: the building's service charge, management and an allowance for vacancy. In this guide's JVC example, 6.9% gross becomes about 4.9% net.

Where can I find a Dubai building's service charge?

In DLD's Service Charge Index, which shows the RERA-approved rate by property, use and year. The annual amount is the approved rate multiplied by the property's chargeable area.

Can a non-resident buy property in Dubai for rental income?

Yes, in Dubai's designated freehold areas, where Law No. 7 of 2006 provides for ownership by non-UAE nationals. Financing for a buyer without UAE residence follows each bank's own policy rather than the Central Bank's resident caps.

Does an off-plan apartment earn a rental yield?

Not until it is handed over and let. An area's published yield describes completed homes on the market, so for an off-plan unit it applies only from handover.

2026-10-24 · refreshed · Replaced first-person tower visits, client figures, unsourced yield bands and the list of areas to avoid with Bayut's H1 2026 projected ROI by area, a worked gross-to-net example and a DLD service-charge record. Sources accessed 24 October 2026.

Last updated
Published May 24, 2026
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Architect-turned-real-estate-specialist based in Dubai. She helps buyers, sellers, and investors read property with a designer's eye — structure, location, and long-term value.

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