Dubai Rental Yields vs London, Mumbai, Singapore: 2026 Comparison

Rental yield is the single most-asked comparison metric among international investors evaluating Dubai. We track the four cities that generate the most Dubai enquiries, London, Mumbai, Singapore, plus Dubai itself, and here is the honest 2026 picture.

Prime apartment gross rental yields (2026)

• Dubai, prime residential (Downtown, Marina, Palm Jumeirah): 6.0–8.0%
• London, prime central (Mayfair, Kensington, Chelsea): 3.0–4.0%
• Mumbai, prime (South Bombay, BKC, Lower Parel): 2.5–3.5%
• Singapore, CCR (Orchard, Sentosa, Marina): 2.5–3.5%

Family villa yields

• Dubai, Palm Jumeirah signature villas: 4.5–6.0%
• London, Kensington townhouses: 2.5–3.5%
• Mumbai, Juhu / Bandra bungalows: 1.5–2.5%
• Singapore, Good Class Bungalow: sub-2% (capital play, not income)

Net-of-tax yield for a foreign investor

Gross yield tells half the story. Net yield after local taxes and typical costs (service charge, agency, void allowance, and where applicable rental income tax) tells the truer picture for a foreign investor.

• Dubai, no rental income tax, ~1.5–2.5% service charge → net 4.5–6.5%.
• London, 20–45% income tax + Section 24 restrictions → net 1.5–2.5%.
• Mumbai, 30% marginal tax + society charges → net 1.5–2.5%.
• Singapore, 22–24% income tax, condo maintenance → net 1.5–2.5%.

Currency layer

Dubai’s AED is pegged to USD at 3.6725. For GBP-denominated London investors, INR-denominated Mumbai investors and SGD-denominated Singapore investors, a Dubai purchase adds structural USD exposure. Over the last decade this peg has broadly strengthened against GBP and INR and traded rangebound vs SGD.