Gross yield = annual rent ÷ purchase price × 100 — useful for quick comparison but flattering, because it ignores costs. Net yield deducts service charge/ground rent, management, maintenance, insurance, void periods and non-recoverable taxes, giving the figure that actually reaches the investor before financing and income tax.
Yields vary by market and asset: prime central locations often show low gross yields (2%–4%) with the return expected mainly as capital appreciation, while secondary markets can show higher income yields with less capital growth. Dubai has historically offered higher gross residential yields than prime London.
Total return is yield plus capital growth, net of costs, tax and the effect of any mortgage (leverage amplifies both the return and the risk). Judge an opportunity on net yield and total return, not the gross headline.