The yield context
Downtown Dubai's broader yield range runs 4.11% to 7.92% across all unit types and price points, with prime locations (Downtown, Marina) typically showing 5-6% on long-let. Within Downtown, Address-branded buildings typically yield 4-5% gross on long-let, while serviced-apartment short-stay yields can reach 7%+ gross before management costs.
For Address Downtown specifically, the building's positioning means most owners optimise for short-stay revenue rather than long-let, which makes published gross yield numbers less meaningful as a single figure than at standard residential buildings.
Long-let vs serviced-apartment economics
Long-let at Address Downtown: lower gross yield (typically 4-5%), but predictable revenue, low management overhead, and one tenant for the year. Serviced-apartment short-stay: higher gross (potentially 7%+), but with higher management fees (typically 20-25% of gross), platform fees, vacancy between guests, dynamic pricing complexity, and tighter linen/cleaning cycles. After all costs, net yields between the two strategies can converge.
| Long-let (Downtown average) | ~4.5 – 5.0% |
|---|---|
| Long-let at Address-tier | ~4.0 – 5.0% |
| Serviced-apartment short-stay (gross) | ~6.5 – 8.0% |
| Serviced-apartment short-stay (net) | ~4.5 – 5.5% (after management & vacancy) |
Gross vs net at Address Downtown
The single biggest cost line at Address Downtown is the service charge — at AED 60+ per square foot, that's a meaningful drag on net yield. A 1,000 sqft 2-bedroom paying AED 60,000 per year in service charges represents ~15% of typical annual rent for that unit, leaving a smaller net yield than the gross headline suggests. Other costs (insurance, agent commission, maintenance reserve) layer on top.
Address Downtown long-let yield sits at the lower end of the Downtown average range, with the trade-off that brand and view command price floors that protect capital character through cycles.