The same question comes up in every audit: "concretely, how much would I net?". Here are three real cases from our 2025 Dubai portfolio: a Marina studio, a Downtown 1-bed, a Palm Jumeirah 2-bed. No marketing averages, no extreme cases: three representative units with their actual ADR, occupancy, costs and net to operator.
Amounts in AED (1 USD ≈ 3.67 AED, fixed peg). All revenue is net of platform commissions, DEWA, service charges, cleaning and our management fee.
Case 1: Studio Dubai Marina, partial marina view
Studio of 52 sqm, Marina Heights tower, 18th floor. Bought in 2022 by a Belgian non-resident investor for AED 1,050,000. Furnished for AED 65,000 (mid-to-high-end, smart-home equipment).
| Line item | AED | % of gross |
|---|---|---|
| Gross revenue (avg ADR 642 × 285 nights sold) | 182,970 | 100 % |
| Platform commissions (Airbnb, Booking, direct) | −18,297 | −10 % |
| Tourism Dirham (AED 10 × 1 room × 285 nights) | −2,850 | −1.6 % |
| DEWA + district cooling + internet | −13,200 | −7.2 % |
| Tower service charge (annual) | −8,320 | −4.5 % |
| Cleaning + premium linen (turnovers) | −14,250 | −7.8 % |
| Maintenance, consumables, welcome amenities | −5,600 | −3.1 % |
| Annual DET renewal | −1,520 | −0.8 % |
| Medini Homes management fee | −27,446 | −15 % |
| Net to owner | 91,487 | 50.0 % |
Tourism Dirham per Executive Council Resolution No. 2 of 2014: AED 10 per occupied room per night, assuming the Standard category, a studio counted as 1 room (AED 15 for Luxury, i.e. AED 4,275 here); it is collected from the guest and only reduces the owner's revenue if the displayed price includes it.
Occupancy: 78 % over 12 months (peak 91 % Jan-Mar, trough 58 % Jul-Aug). On purchase price: net yield 8.2 %/year, ex capital appreciation. Same unit on a long-term lease would clear ~75,000 AED/yr net (6.7 %), so short-let delivers +22 % additional cash flow at equivalent owner effort since everything is delegated.
Case 2: 1-bed Downtown, partial Burj Khalifa view
1-bed 78 sqm, Burj Vista 1, 32nd floor. Partial Burj Khalifa view (NE orientation). Bought 2021 for AED 2,380,000, furnished 110,000 AED.
| Line item | AED | % |
|---|---|---|
| Gross revenue (ADR 1,285 × 268 nights) | 344,380 | 100 % |
| Platform commissions | −34,438 | −10 % |
| Tourism Dirham (AED 10 × 1 room × 268 nights) | −2,680 | −0.8 % |
| DEWA + cooling + internet | −22,800 | −6.6 % |
| Tower service charge | −15,600 | −4.5 % |
| Cleaning + linen | −18,760 | −5.4 % |
| Maintenance + amenities | −8,200 | −2.4 % |
| DET renewal | −1,920 | −0.6 % |
| Management fee | −51,657 | −15 % |
| Net to owner | 188,325 | 54.7 % |
Tourism Dirham per Executive Council Resolution No. 2 of 2014: AED 10 per occupied room per night, assuming the Standard category (AED 15 for Luxury, i.e. AED 4,020 here); it is collected from the guest and only reduces the owner's revenue if the displayed price includes it.
Occupancy 73.4 % (peak 88 %, trough 56 %). Net yield 7.9 %/year on purchase price. The Burj view, even partial, pushes ADR by 18 % vs a comparable without view. I break down how studios and one-beds compare on yield in a separate piece.
Case 3: 2-bed Palm Jumeirah, full crescent sea view
2-bed 142 sqm, Five Palm Jumeirah Residences, 14th floor. Full sea view onto crescent. Bought 2020 for AED 5,200,000, furnished 280,000 AED (high-end).
| Line item | AED | % |
|---|---|---|
| Gross revenue (ADR 3,420 × 215 nights) | 735,300 | 100 % |
| Platform commissions | −73,530 | −10 % |
| Tourism Dirham (AED 10 × 2 rooms × 215 nights) | −4,300 | −0.6 % |
| DEWA + cooling + internet | −42,000 | −5.7 % |
| Palm service charge (high) | −48,200 | −6.6 % |
| Cleaning + premium linen | −32,000 | −4.4 % |
| Maintenance + amenities | −18,500 | −2.5 % |
| DET renewal | −2,400 | −0.3 % |
| Management fee | −110,295 | −15 % |
| Net to owner | 404,075 | 55.0 % |
Tourism Dirham per Executive Council Resolution No. 2 of 2014: AED 10 per occupied room per night, assuming the Standard category (AED 15 for Luxury, i.e. AED 6,450 here); it is collected from the guest and only reduces the owner's revenue if the displayed price includes it.
Occupancy 58.9 %: sharper seasonality (peak 78 % Dec-Feb, trough 42 % summer). Net yield 7.8 %/year. Palm specificity: ultra-high ADR but lower occupancy. Net cash impressive in absolute, equivalent in % terms to the other two cases.
Across the three cases, net to owner converges to 50-55 % of gross, and annualised net yield sits at 7.8-8.2 % on purchase price. That's the Dubai 2026 benchmark for a properly positioned asset under professional management.
What we control to lift the yield
- Pro photos: 6,000-8,000 AED shoot lifts ADR by 15-25 % on average. Payback under 90 days.
- Dynamic revenue management: event-driven pricing (GITEX, Art Dubai, F1, Expo Legacy) adds 8-12 % yearly ADR.
- Optimised channel mix: Airbnb 45 %, Booking 35 %, Hotels/Expedia 12 %, direct 8 %. Diversification reduces platform risk and improves margin.
- Welcome amenities: kit, water glass bottles, dates · +0.2 average rating, +6 % search-to-book conversion.
- Messaging response time: under 12 minutes 24/7 · +14 % conversion vs market. Host responsiveness is also one of the factors Airbnb search weighs.
What we live with
- Tower service charges: varies by developer. Plan 12-22 AED/sqft/yr. Dubai Hills and Emaar South more accessible, Palm and DIFC pricier.
- DEWA + district cooling: 800-1,800 AED/month depending on size and usage. Empire and Empower bill cooling separately.
- District seasonality: Marina smooths the year (corporate off-season), Palm has the hardest summer trough.
Then comes the holding structure, which I compare in my free zone or mainland guide.
The "easy 10 %" myth
You'll regularly see promises of 10-12 % net annualised on Dubai short-let. On entry-level units (Studio City, JVC, IMPZ) at AED 600-800k, it's possible, but ADR caps at 350-500 AED, occupancy at 70 %, and gross margin at 35-40 % because fixed costs (DEWA, service charge) weigh proportionally more.
On premium units (Marina, Downtown, Palm) at AED 1.5-6 M, net annualised converges at 6.5-8 %. Beyond that, it's fiction.
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