Investment Tool

    Buy-to-Let yieldcalculator Dubai

    Calculate gross yield, net yield, cash-on-cash return, and stress-test your Dubai investment property against UAE bank lending criteria. Essential tool for property investors.

    Property Value
    AED 1,500,000
    AED 500KAED 10M
    Down Payment
    30%
    25%50%

    Buy-to-let requires minimum 25-30% down payment for UAE residents, 30-35% for non-residents.

    Interest Rate5.00%
    4.0%7.0%
    Expected Monthly Rent
    AED 8,000
    AED 3KAED 50K
    Monthly Service Charges
    AED 1,200
    AED 0AED 5K

    Gross Rental Yield

    6.40%

    Annual rent ÷ Property value

    Net Rental Yield

    0.53%

    After mortgage & service charges

    +AED 7,942/year

    Cash-on-Cash Return

    1.47%

    Annual return ÷ Cash invested

    Cash invested: AED 540,000

    Bank Stress Test

    PASS

    1.30x coverage

    UAE banks require rent to cover 120% of mortgage payment

    Mortgage Details

    Mortgage AmountAED 1,050,000
    Monthly PaymentAED 6,138
    Break-even11.0 months
    Get BTL mortgage quotes on WhatsApp

    Understanding Rental Yields

    Two key metrics for evaluating Dubai investment properties:

    Gross Yield

    (Annual Rent ÷ Property Value) × 100. Shows headline return before costs. Dubai gross yields typically range 5-8% for apartments, 4-6% for villas.

    Net Yield

    (Annual Rent − All Costs) ÷ Property Value × 100. True return after mortgage, service charges, insurance, and management fees.

    Cash-on-Cash Return

    Annual Profit ÷ Cash Invested × 100. Shows return on your actual cash (down payment + fees), not total property value. More relevant for leveraged investments.

    UAE Buy-to-Let Mortgage Rules

    Minimum Down Payment — 25-35%

    Higher than owner-occupied properties. 25% minimum for UAE residents, 30-35% for non-residents. Second investment properties may require 35%+.

    Rental Coverage Requirement — 120%

    Expected rental income must cover at least 120% of mortgage payments. Some banks require 125-130% for non-residents or luxury properties.

    Interest Rates — Typically +0.5-1%

    Buy-to-let mortgages usually carry 0.5-1% premium over residential rates. Current BTL rates in Dubai range 5.0-6.5%.

    Maximum Age — 65-70 at maturity

    Borrower age plus loan term must not exceed 65-70 years at maturity, depending on bank policy and whether salaried or self-employed.