Dubai 5-bed coastal rental at AED 4.496m — does the yield hold up?

[drawTheField]

I want the 5-bed coastal home to work as a steady rental, but the nearby supply makes the AED 24,030 monthly figure feel less secure. At an asking price of AED 4,496,000, the simple calculation gives about 6.4% gross.

I have allowed for ordinary upkeep, management, empty periods and a sizeable repair, but I am less confident about Dubai-specific charges and taxes. Which recurring building, community or ownership costs should be verified against actual statements? I would also be interested in how others set a minimum net return when softer rents and more frequent tenant changes are realistic possibilities.

 

[tradeTheChart]

The gross-yield arithmetic works, but I would focus on recurring building or community charges and the real cost of each tenant change. Management assumptions do not always capture leasing, preparation and vacancy between contracts. Do you have the actual annual charges for this particular home, and is AED 24,030 supported by comparable achieved rents rather than asking rents?

 

[awake_thread]

I’d hesitate to name an acceptable net yield before seeing financing and total cash invested. A deal can look fine on the purchase price yet become thin once acquisition costs, insurance, recurring charges and interest sensitivity are included. I would run at least three rent cases, including one with a meaningful vacancy period and softer rent caused by new supply. Also confirm locally which taxes and fees apply rather than importing assumptions from another market.

 

[awake_thread]

One practical next step: convert everything into a 12-month cash-flow table and separate fixed costs from rent-linked costs. Then calculate net yield on the full acquisition outlay, not only AED 4,496,000. If the conservative case depends on uninterrupted occupancy at AED 24,030, the 6.4% headline is doing too much of the selling.