How commercial yields work in Dubai, and what net really means.

A broker tells you a Dubai office yields "8%". A listing says "high ROI". But net yield — the number that actually reaches your pocket — is a quieter figure, and it is the only one worth comparing.

Gross yield is a headline, not a result

Gross yield is simple: annual rent divided by purchase price. An office bought for AED 2,000,000 renting at AED 160,000 a year shows an 8% gross yield. That number is useful for one thing — quick comparison between listings. It tells you nothing about what you keep.

What "net" subtracts

Net yield deducts the costs of owning the asset before the income reaches you:

• Service charges — in Dubai commercial towers these are billed per square foot and are often the single largest deduction.
• Vacancy — a month empty between tenants is roughly 8% of a year's rent gone. Honest yield math assumes some vacancy, always.
• Leasing costs — agency fees on new tenancies and any rent-free fit-out periods.
• Maintenance and capex reserves — lifts, chillers and lobbies age; the reserve is not optional.
• Management and administration — someone collects the rent, chases arrears and files the paperwork.

After these, that 8% gross might be 5–6% net. Still respectable — but a different investment decision.

Why net yield matters more in shared ownership

When you hold a fraction of a commercial project, you cannot "sweat" the asset yourself — you rely on the operator's cost discipline. That makes the deductions above even more important to read before you reserve. Every project on this platform publishes its full cost stack in the document room, so you can trace the path from gross rent to distributable cash yourself.

Three questions to ask of any yield figure

1. Net of what? If the answer is vague, the yield is a headline.
2. What vacancy is assumed? Zero assumed vacancy is a fantasy, not a forecast.
3. Who bears cost overruns? Service charges rise; check whether the model absorbs them or passes them to distributions.

Yield is a useful servant and a dangerous master. Run it net, run it honest, and it will tell you the truth about an asset. Capital at risk. Educational content, not financial advice.