Tool
Yield on cost
Price, expected rent, service charge and vacancy in; gross yield, net yield on cost, cash-on-cash by handover and a simple break-even year out. Purchase fees are added as separate lines. 69 areas carry a published yield band you can start from.
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About the figures
What is the difference between gross yield and yield on cost?
Gross yield is the annual rent divided by the purchase price. Yield on cost divides the net income (rent after vacancy, service charge and other running costs) by the total cost including the 4% DLD fee, admin and registration fees and any agency commission. It is the number to compare across projects.
Where does the prefilled rent come from?
From the gross yield band published on the chosen area's page, for example 6% – 8% for Business Bay. The tool takes the midpoint of that band times the price. It is a starting point for the area, not a forecast for a unit; replace it with asking rents for comparable units before deciding.
What is cash-on-cash by handover?
Net annual income divided by the cash actually paid by handover: the share of the price due under the plan plus the fees. On a plan with a post-handover share it is higher than the net yield because part of the price is still outstanding when rent starts.
What does the break-even year mean?
The number of years of net income needed to recover the total cost, with no rent growth, no price growth and no leverage. It is a simple payback figure for comparing projects, not a return forecast.
Want asking rents for a specific tower or unit type rather than an area band? Ask; we check live listings before quoting a yield.
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