What rental yield can investors expect from Rosehill apartments after the 2029 handover?
Investors in Rosehill can expect gross rental yields of approximately 5% to 6.5% per annum after the 2029 handover, assuming standard units (1- to 3-bedroom) in well-finishes with good views and location within the development.
These yield estimates are supported by recent yield trends in Dubai Hills Estate, which show similar communities achieving in that range. Nett yields would be somewhat lower once service charges, maintenance, and vacancy are factored. So what are the key assumptions behind these numbers?
Data & Indicators from Dubai Hills Estate
- Current apartment yields: For Dubai Hills Estate apartments, typical rental yields are around 6.2% for apartments.
- Apartment vs villa yields: Villas here tend to have yields a bit lower (~5.17%), because of their higher capital cost.
- Off-plan and new developments: Off-plan units in Dubai Hills tend to project yields in the 5%-8% range, depending on when you enter and what finish/features you receive.
Assumptions for Rosehill Yield Estimate
- Units are handed over as planned in 2029, in good condition, with standard market finishes.
- Public amenities, community infrastructure, schools, retail etc., are fully operational (as expected in Dubai Hills Estate). These boost demand and reduce vacancy.
- Location within Rosehill (floor, view whether golf, pool, or otherwise) will matter: premium units will beat the average; internal or lower floor/limited view units may be lower yield.
- Rental market and demand continues strong in Dubai, consistent with recent supply/demand trends.
What Investors Should Consider
- Net yield will be lower: after service charges, maintenance, possible HOA fees, and vacancy periods, actual returns may fall ~0.5-1.5% below gross.
- Timing of lease-up matters: new buildings often have a ramp-up period before achieving full occupancy, affecting early-year returns.
- Regulatory costs (e.g., DLD fees, taxes if applicable), furnishing or fit-out costs also impact effective yield.
- Market cycles: yield projections assume stable rental growth; any downturns or over-supply could compress yields.
Summary Forecast
- Gross yield: ~5.0% to ~6.5% per year for typical 1- to 3-bedroom apartments in Rosehill post-handover.
- Premium units (good view, higher floor, upgraded finish) could yield slightly above that range.
- Net yield (after operating costs etc.) more likely in ~4.0% to ~5.5% range.