Net Yield
Net yield is net operating income divided by property value, expressed as a percentage. It accounts for operating expenses and provides realistic return measurement.
| Calculation | Formula |
| Net yield | (Annual NOI / Property value) times 100 |
| Equivalent to cap rate | Same calculation, different terminology |
| Includes expenses | More accurate than gross yield |
| Excludes debt service | Pre-financing return metric |
| Gross vs Net Yield Example | Amount |
| Property value | AED 1,500,000 |
| Annual rent | AED 90,000 |
| Operating expenses | AED 25,000 |
| NOI | AED 65,000 |
| Gross yield | 6.0% |
| Net yield | 4.3% |
| Difference | 1.7 percentage points |
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