How return is built
Total return = (sum of net rent) + (sale price − purchase price − transfer costs).
Worked example — 1BR, 5-year hold
Purchase AED 2M, gross AED 100K (5%), net AED 70K. 4% appreciation.
1BR — 5-year return (AED, indicative)
| Purchase price | 2,000,000 |
|---|---|
| Net rent, 5 years | ~350,000 |
| Sale price | ~2,433,000 |
| Less transfer / agency | ~97,000 |
| Total return | ~686,000 |
| Approximate ROI | ~34% (5 years, ~6.0% annualised) |
Worked example — 3BR, 5-year hold
Purchase AED 4.5M, gross AED 220K (4.9%), net AED 150K. 4% appreciation.
3BR — 5-year return (AED, indicative)
| Purchase price | 4,500,000 |
|---|---|
| Net rent, 5 years | ~750,000 |
| Sale price | ~5,475,000 |
| Less transfer / agency | ~219,000 |
| Total return | ~1,506,000 |
| Approximate ROI | ~33% (5 years, ~5.9% annualised) |
Stress-tests
Flat case: ROI to net yield only. Down-cycle: modern build supports demand floor.