How return is built
Total return = (sum of net rent) + (sale price − purchase price − transfer costs).
Worked example — 1BR, 5-year hold
Purchase AED 1.5M, gross AED 80K (5.3%), net AED 55K. 4% appreciation.
1BR — 5-year return (AED, indicative)
| Purchase price | 1,500,000 |
|---|---|
| Net rent, 5 years | ~275,000 |
| Sale price | ~1,825,000 |
| Less transfer / agency | ~73,000 |
| Total return | ~527,000 |
| Approximate ROI | ~35% (5 years, ~6.2% annualised) |
Worked example — 2BR, 5-year hold
Purchase AED 2.8M, gross AED 140K (5%), net AED 95K.
2BR — 5-year return (AED, indicative)
| Purchase price | 2,800,000 |
|---|---|
| Net rent, 5 years | ~475,000 |
| Sale price | ~3,406,000 |
| Less transfer / agency | ~136,000 |
| Total return | ~942,000 |
| Approximate ROI | ~34% (5 years, ~6.0% annualised) |
Stress-tests
Flat case: ROI to net yield only.