How return is built
Total return = (sum of net rent) + (sale price − purchase price − transfer costs).
Worked example — 2BR, 5-year hold
Purchase AED 4.5M, gross AED 200K (4.4%), net AED 130K. 4.5% appreciation.
2BR — 5-year return (AED, indicative)
| Purchase price | 4,500,000 |
|---|---|
| Net rent, 5 years | ~650,000 |
| Sale price | ~5,612,000 |
| Less transfer / agency | ~225,000 |
| Total return | ~1,537,000 |
| Approximate ROI | ~34% (5 years, ~6.0% annualised) |
Worked example — 3BR, 5-year hold
Purchase AED 7.5M, gross AED 320K (4.3%), net AED 210K.
3BR — 5-year return (AED, indicative)
| Purchase price | 7,500,000 |
|---|---|
| Net rent, 5 years | ~1,050,000 |
| Sale price | ~9,353,000 |
| Less transfer / agency | ~374,000 |
| Total return | ~2,529,000 |
| Approximate ROI | ~34% (5 years, ~6.0% annualised) |
Stress-tests
Flat case: ROI to net yield only. Down-cycle: premium-tier and end-user demand provide capital floor.