The True Cost of Owning a Dubai Apartment

Gross yield excludes ownership costs. Net income depends on actual service charges, maintenance, vacancy, management and financing; there is no universal percentage reduction that applies to every building.

The main recurring items: service charges, district cooling (chiller), utilities, home insurance, management fees if let, and periodic maintenance/refurbishment reserves.

Service charges are quoted in AED per sqft per year and vary by building and approved budget. Obtain the current building-specific service-charge information from DLD and the managing entity; unsupported district-wide ranges are not current quotes.

RERA publishes approved service charge budgets. Always request the current year's budget and the last audited financials for the owners' association before purchase.

Most master-planned communities use district cooling from providers such as Empower, Emicool or Tabreed. Cooling is billed in two components: a fixed capacity charge (based on connected tonnage) and a consumption charge (based on actual usage).

A fixed capacity charge may apply even when the unit is empty. Verify connected tonnage, the current tariff and whether the landlord or tenant pays each charge under the contract.

Subtract vacancy, management, service charges, cooling where payable, insurance and maintenance from annual rent. Use actual quotes and clearly identified assumptions rather than presenting model inputs as market averages.

Calculate unlevered net yield as net annual operating income divided by the acquisition cost you choose to model. Include purchase costs consistently and calculate financing and home-country tax effects separately.