A 5.7% gross median, ranging from 2.4% to 6.8% depending on the district: how to read and calculate rental yield on an Abu Dhabi property, and what separates the advertised gross figure from the real net return.
On this page
- What rental yield can you expect in Abu Dhabi?
- How gross yield is calculated, and why it sits close to after-tax yield
- Abu Dhabi districts ranked by gross rental yield
- Worked example: an 800 sq ft apartment on Yas Island
- Why does yield fall when prices rise quickly?
- The traps that distort how you read a rental yield
Abu Dhabi rental yield peaks at 6.8% gross on Reem Island and Al Maryah Island, according to Bayut data for March 2026, calculated across the 8 districts that have both a sales series and a rental series. Mid-table sit Al Rahah (5.7%) and Al Bahyah (5.2%). That is where the analysis starts, not where it ends.
At Lucretia, we always keep two figures apart: the advertised gross yield, the one quoted in listings, and the real net yield, what you actually keep at the end of the year. The data below lets you compare districts. It then serves to build a realistic income plan for a specific property.
What rental yield can you expect in Abu Dhabi?
Expect a calculated gross yield of 2.4% to 6.8% depending on the district, based on Bayut data from February to April 2026.
The bottom of the range belongs to Al Jurf Gardens (2.4%, March 2026), the top to Al Maryah Island (6.8%, March 2026), according to Bayut data. For context, the median price stands at AED 1,792/sq ft across the 10 districts Bayut tracks for sales.
These rates describe the market as it stands. They are not a promise of future income.
Demand is underpinning rents. According to ADREC (June 2026), demand has outstripped supply for several years and occupancy rates are at record highs. Rents on new apartment leases rose 17% year on year across the emirate, and 21% in investment zones. For a broader view of the market, see our page on investing in Abu Dhabi.
How gross yield is calculated, and why it sits close to after-tax yield
Gross yield is calculated by dividing annual rent per square foot by the sale price per square foot. Bayut's series already express rent on an annual basis.
The formula in practice
Example on Yas Island: AED 112/sq ft/year ÷ AED 1,922/sq ft = 5.8%, according to Bayut data for March 2026. For a specific property, the same logic applies: annual rent collected ÷ purchase price. The glossary explains the difference between gross and net yield.
Gross yield almost equal to after-tax yield
In the UAE, individuals pay no income tax: no UAE tax applies to your rental income or your capital gains, as the official UAE government portal confirms. In many markets, you go from gross to net of costs, then to net of tax. Here, only the first step remains.
That step still matters. Gross yield deducts neither service charges, nor management, nor vacancy. Our guide to buying off-plan in Abu Dhabi puts figures on the recurring costs of a completed property. We measure this gap between advertised and real for every client file, using the method detailed for moving from gross to net yield.
Abu Dhabi districts ranked by gross rental yield
Reem Island and Al Maryah Island share first place, each with a calculated gross yield of 6.8%, according to Bayut data for March 2026. Our selection of the best districts for rental yield in Abu Dhabi details the investor profile and weak spot of each.
They get there by two different routes. Reem Island pairs a moderate entry price (AED 1,497/sq ft) with rent of AED 102/sq ft/year. Al Maryah Island, a business district, costs more (AED 2,043/sq ft) but rents for AED 138/sq ft/year, the highest rent in the series.
Mid-table, Al Rahah shows 5.7% (February 2026) and Al Bahyah 5.2% (April 2026). The bottom of the ranking is made up of beachfront or prestige addresses: Al Saadiyat Island at 4.3%, Ghantout at 3.9% and Al Jurf Gardens, all as of March 2026.
| District | Sale price (AED/sq ft) | Rent (AED/sq ft/year) | Calculated gross yield | Bayut month |
|---|---|---|---|---|
| Reem Island | 1,497 | 102 | 6.8% | March 2026 |
| Al Maryah Island | 2,043 | 138 | 6.8% | March 2026 |
| Yas Island | 1,922 | 112 | 5.8% | March 2026 |
| Al Rahah | 1,691 | 97 | 5.7% | February 2026 |
| Al Bahyah | 858 | 45 | 5.2% | April 2026 |
| Al Saadiyat Island | 2,714 | 117 | 4.3% | March 2026 |
| Ghantout | 1,546 | 61 | 3.9% | March 2026 |
| Al Jurf Gardens | 1,603 | 39 | 2.4% | March 2026 |
A modest yield does not make a poor investment: these districts are often bought for capital growth, and part of their supply is sold off-plan. Our guide to buying off-plan in Abu Dhabi covers this entry route in detail.
Worked example: an 800 sq ft apartment on Yas Island
An 800 sq ft apartment bought at the Yas Island average price yields 5.7% gross once transfer fees are included in the cost, based on Bayut data for March 2026.
Free guide, delivered on WhatsApp
Get our investment guide
Taxation, visas, financing, buying steps: 14 pages sent to your WhatsApp within minutes.
- Purchase price: 800 sq ft × AED 1,922/sq ft = AED 1,537,600 (Bayut, March 2026).
- Annual gross rent: 800 sq ft × AED 112/sq ft/year = AED 89,600 (Bayut, March 2026).
- Transfer fees: 2% of the price via ADREC/DARI, i.e. AED 30,752, according to DARI.
- Total cost: AED 1,568,352, giving a gross yield on total cost of 5.7%. This assumes a cash purchase; for the impact of a down payment, mortgage or payment plan, see our guide to financing property in Abu Dhabi as a foreigner.
Foreigners can buy here: Yas Island is one of the designated investment zones, according to DARI.
Projects we list on the island include Yas Riva (completion September 2028), Sama Yas (April 2028) and Waldorf Astoria Residences Yas (December 2028), all by Aldar Properties. There is also Perla 1 by Reportage Properties (December 2028).
Why does yield fall when prices rise quickly?
Gross yield falls as soon as the purchase price rises faster than rent, since the price is the denominator in the calculation.
Al Jurf Gardens illustrates this clearly: +59.6% over 36 months, for a gross yield of just 2.4%, according to Bayut data for March 2026. Al Saadiyat Island follows the same logic, with +67.2% over 60 months and a 4.3% yield.
By contrast, Reem Island is up +6.1% over 12 months and holds on to 6.8%. That pace matches exactly the median market change measured by Bayut across 10 districts. Price moves in step with the market, and the yield stays at the top of the table.
On the ground, I often see clients arrive with a district in mind because it "has gone up a lot", without having looked at the rent that price still supports. My advice is to set the objective first, income or capital growth, and choose the district second. Never the other way round.
The traps that distort how you read a rental yield
The first trap is comparing yields measured in different months: on Bayut, Al Rahah stops at February 2026, Al Bahyah at April 2026 and most other districts at March 2026.
A project in mind?
Talk to a Lucretia adviser
Tailored guidance, no obligation.
Districts with no calculable yield
Fahid Island (AED 3,844/sq ft, +186.4% over 36 months, March 2026) and Al Hudayriat Island (AED 1,792/sq ft, +15.6% over 12 months, August 2026) have no rental series on Bayut. No yield can be calculated from this data: any figure put forward has to be justified property by property.
A low price that moves a lot
Al Bahyah is up +44.4% over 12 months but down −8.6% over 36 months, according to Bayut. Its 5.2% rests on a low price per square foot, which makes it sensitive to the slightest movement.
A frozen reference rent
Since 3 June 2026, ADREC has set the annual rent increase cap at 0%, temporarily and until further notice. Renewals and new contracts alike start from the last Tawtheeq lease registered for the property. The rent in place therefore matters as much as the district average.
No rent before completion
An off-plan property earns nothing before handover: at Hudayriyat Golf Estates, with completion scheduled for August 2030, the first rent will come after that. The pitfalls specific to buying off-plan are covered separately.
The most confident buyers I work with asked for the building's lease history before signing, not just the district average.
— Sofiane ABDELAZIZ, Real Estate Consultant
In this guide
Articles in this guide
This article is part of our guide
Abu Dhabi Property Investment Guide: Buy, Let and Resell with Confidence
About the author
Sofiane ABDELAZIZ
Real Estate Consultant
Sofiane is a real estate investment expert in Dubai with a solid background in finance and investment strategy. He specializes in financial market analysis and risk management, treating real estate as a true asset class. After gaining experience in the secondary market, he moved into Off Plan investment, developing in-depth knowledge of the Dubai real estate market. At Lucretia Immobilier, he supports an international clientele in acquiring high-potential properties with a structured, transparent, and performance-driven approach.
