Buying Guide · Abu Dhabi
How to Judge Rental Return on an Abu Dhabi Apartment
Work it out from the building's real rents and costs, not an average.
Any average yield you read for Abu Dhabi is a description of a market, not a promise about your unit. Two towers on the same island can return very different amounts. The reliable method is to gather the real numbers for the specific building and work the return out yourself.
Projects
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From AED 620,000
Studio to 4 BR · Studios, apartments, penthouses
View project →The Gate Towers
Shams Abu Dhabi, Al Reem Island · Aldar Properties
Price on request
Studio to 4 BR · Studios, apartments, penthouses
View project →
ReadyPark View Tower
Shams Abu Dhabi, Al Reem Island · Mesab Limited
Price on request
2 to 3 BR · Apartments
View project →Sigma Towers
City of Lights, Al Reem Island · Mismak Properties
Price on request
Layouts on request · Studios, apartments
View project →Hydra Avenue Towers
City of Lights, Al Reem Island · Hydra Properties
Price on request
Layouts on request · Studios, apartments, townhouses
View project →Net, not gross
Gross yield divides rent by price and ignores the running costs. Net yield takes the annual rent, subtracts the annual service charge and any management fee, and divides by the total purchase cost including registration and agency fees. Net is the figure you actually keep, and it can be several points lower.
The numbers to collect
For the exact building, ask for the rent achieved by the last two or three tenants of a comparable unit, how long each stood empty, the annual service charge per square foot, and any planned major maintenance. An agent's average is not a substitute.
Ready or off-plan
A ready building can rent from day one, so its return can be measured now. An off-plan home earns nothing until handover, so its return depends on the rent that will apply at that date and on the handover happening on time.
Older or newer buildings
Older buildings can cost less per square foot, which lifts the yield on paper, but can carry higher maintenance and service charges. Newer buildings usually cost more and need less spending. Compare the net figures rather than the rent.
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