DLD fees (4%), agency, NOC, conveyancing
Total ROI
50.6%
Annualized ROI
10.1%
Total Return
AEDÂ 789,422
What property fees apply in UAE?
Dubai Land Department (DLD) charges a 4% transfer fee on property purchases. Additional costs include agency commission (typically 2%), NOC fees (AED 500-5,000), conveyancing fees, and mortgage registration (if applicable). Total acquisition costs are typically 6-8% of the property price.
What are average appreciation rates?
Dubai property appreciation has averaged 3-8% annually over the long term, though individual years can vary significantly. Prime locations like Dubai Marina and Downtown Dubai have historically shown stronger appreciation, while emerging areas may offer higher short-term gains.
Is there capital gains tax in UAE?
No, the UAE does not impose capital gains tax on property sales for individual investors. This is a major advantage compared to many other countries. However, if you hold property through a corporate entity, the 9% corporate tax may apply to profits above AED 375,000.
Note: Past property performance does not guarantee future returns. This calculator provides estimates based on the appreciation rate you input.
How to measure the return on your property investment in Dubai, Abu Dhabi, and other emirates
What is property ROI?
ROI (Return on Investment) measures how much profit you make from a property compared to what you spent. It is shown as a percentage. For example, if you buy a flat for AED 1,000,000 and earn AED 70,000 in net rental income per year, your ROI is 7%. A higher ROI means a better return on your money.
What ROI can I expect in the UAE?
Gross rental yields in Dubai typically range from 5% to 9%, depending on the area and property type. Studios and one-bedroom apartments in areas like Dubai Silicon Oasis, JVC, and International City tend to offer higher yields (7% to 9%). Luxury villas in Palm Jumeirah or Emirates Hills might yield only 3% to 5% but can see stronger capital appreciation.
How do I calculate net ROI?
Net ROI subtracts all your expenses from the rental income before calculating the return. Expenses include service charges (AED 10 to AED 40 per square foot per year), property management fees (5% to 10% of rent), maintenance costs, insurance, and any mortgage interest. For instance, if gross rent is AED 80,000 and expenses are AED 25,000, your net income is AED 55,000.
Is there tax on rental income in the UAE?
There is no personal income tax on rental income in the UAE. If you own property as an individual, you keep all your rental profit. However, if you hold property through a company, rental income above AED 375,000 in taxable profit may be subject to 9% corporate tax. There is also no capital gains tax when you sell a property.
What fees do I pay when buying property in the UAE?
The main cost is the Dubai Land Department (DLD) transfer fee of 4% of the purchase price. On a property worth AED 1,500,000, that is AED 60,000. You also pay a registration fee (AED 2,000 to AED 4,000), agent commission (typically 2%), and mortgage registration if applicable (0.25% of the loan amount). These fees reduce your overall ROI.
What are service charges and how do they affect ROI?
Service charges cover the upkeep of shared areas, security, pools, and gyms. They are set by the building management and range from AED 10 to AED 40 per square foot per year. For a 1,000 sq ft apartment, that could be AED 10,000 to AED 40,000 per year. High service charges can significantly reduce your net ROI.
Should I buy off-plan or ready property for better ROI?
Off-plan properties (bought before construction is finished) are usually cheaper and developers offer flexible payment plans. This means you can secure a property with a smaller upfront investment, potentially boosting your ROI. However, off-plan carries risks like construction delays and market changes. Ready properties offer immediate rental income with less uncertainty.
FTA-Aligned: Based on 2025 FTA rates and regulations. For personal advice, speak to a qualified tax consultant.
Disclaimer: This calculator provides estimates based on current UAE Federal Tax Authority rates and MOHRE labour law provisions. It does not constitute professional tax, financial, or legal advice. Your actual entitlements may differ depending on your individual circumstances, employment contract, and applicable free zone regulations. Always consult a qualified adviser before making financial decisions. Read our terms