MARKET TERMS
Gross vs net yield
Also searched as: rental yield
Gross yield is annual rent divided by purchase price. Net yield subtracts the owner’s real costs: service charges, management fees, maintenance and void periods. Portals quote gross because it flatters; your bank account earns net, typically 1.5 to 2.5 points lower.
A 7% gross apartment with AED 18 psf service charges can net less than a 6% gross one at AED 8 psf. Always compute net with the actual service charge, which is public per building.
More from market terms
This explains the general case. If Gross vs net yield has come up in a live deal of yours, talk to the team: specific answers, registered numbers, no obligation.