Net Operating Income (NOI)
Frequently asked questions
Net rental yield uses purchase price as the denominator (what you paid). Cap rate uses current market value (what it's worth now). For a brand-new purchase they're identical. Five years later, they diverge as the property value moves.
Cap rate is meant to compare properties regardless of how they're financed. Two identical buildings should have the same cap rate even if one is bought cash and the other with 80% leverage. That's why NOI stops at operating expenses — interest is a financing cost, not an operating cost.
For 2026, Dubai prime office sits around 7-9%, retail 6-8%, industrial 8-10%, residential 5-7%. Anything above 10% usually means either a great deal or a hidden problem — check the numbers and the location carefully.
GRM = property value ÷ annual gross rent. It's a quick screening tool — properties with similar GRMs in the same area are roughly comparable. A GRM of 12 means it takes 12 years of gross rent to equal the price. Lower is better for the buyer.
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