RETURN ON INVESTMENT
& RENTAL YIELDS
& RENTAL YIELDS
9-12%
Net rental yield from short-term rental bookings on a daily or monthly basis
(rental of the property is managed by the owner of the property)
(rental of the property is managed by the owner of the property)
Ras Al Khaimah
7-10%
Yield from short-term rental on a daily or monthly basis using the service of property management by a real estate company
Ras Al Khaimah
4,5-7%
Long-term rental yield on an annual basis (depending on property type, its condition and number of cheques (e.g. 1 advance payment for the whole year vs. 12 payments per year)
Ras Al Khaimah
4-5%
Net rental yield from long-term rental on an annual basis in the Dubai Marina area (even here the range of income is affected by the property type and number of cheques)
Dubai
Net Rental Yields
Our rental yield percentages reflect the average net rental yield after deducting all costs associated with the property. This includes the annual service fee, utilities, and other expenses. We provide transparent information to ensure you have a clear understanding of the actual rental income you can expect from your investment property.
Below you can see an example of the calculation of the income from the rental of a property that is rented long-term as an unfurnished 1 bedroom apartment (Area: 80 sq.m., Location: Royal Breeze Residence, Al Hamra Village, Ras al Khaimah)
Real Example
* Annual service fee to the developer - By collecting this fee from the residents, the developer finances the maintenance of common areas (including the maintenance of all greenery), security services, energy consumption for common areas and other costs associated with the operation of residential housing
** Return on Investment in % = this value is calculated by the formula "Total net annual yield / total cost of property acquisition"
*** The exchange rate of 1 EUR = 4 AED was used for the calculation
** Return on Investment in % = this value is calculated by the formula "Total net annual yield / total cost of property acquisition"
*** The exchange rate of 1 EUR = 4 AED was used for the calculation
Factors for investment profitability in the form of long-term return on investment
- The forecast for property price growth in Ras Al Khaimah is now estimated at:10% -25% annually depending on the property type
- Although Ras Al Khaimah is affected by the property market in Dubai, it is far more stable.While property prices in Dubai have shown a sinusoidal curve over the past 15 years, with large and rapid increases in prices alternating with periods of large and rapid declines, in Ras Al Khaimah the increase has been more gradual, but apart from an annual decline in the period from spring 2020 to spring 2021 due to the Covid pandemic, it is not facing any big drops.
- Rapid development of Ras Al KhaimahRas Al Khaimah has experienced rapid development in recent years, and new investments are now supported not only by the project of the American company Wynn Resorts, which will open the first casino in the Middle East in early 2027 precisely in Ras Al Khaimah on Marjan Island. You can read more about upcoming projects or projects under construction here.
- Economic development of Ras Al KhaimahRas Al Khaimah is developing not only from the point of view of tourism and construction but also from the economic point of view. Ras al Khaimah Free Zone offers 100% company ownership and zero income tax for both companies and employees, which, along with lower business license costs and lower prices for ancillary services, is preferred by many businesses over Dubai.
- 18% year-on-year growth in the number of newly registered companiesRAKEZ (Ras Al Khaimah Economic Zone) has achieved a record 18% year-on-year growth in the number of newly registered companies in 2022 (4,200 new companies in one year) and gathered approximately 47,000 in total. Among the local companies, the best known are RAK Ceramics (construction products, sanitation, ceramics), Julphar Pharmaceuticals (pharmacy), Kludi RAK (sanitation, faucets).