Dubai Property Investment Calculator
The complete Dubai property investment analysis — IRR, year-by-year cash flow, mortgage amortization, equity accumulation, and exit proceeds. The hero tool for evaluating any rental investment in Dubai.
Property
Financing
Market assumptions
IRR (annualised return)
14.66%
Total return (10y)
AED 1,166,411
+243% on cash invested
Cash invested
AED 480,000
Down payment + closing
Year 1
- Property valueAED 1,560,000
- EquityAED 458,230
- Cash flowAED 13,659
Year 5
- Property valueAED 1,824,979
- EquityAED 828,611
- Cash flowAED 31,409
Year 10
- Property valueAED 2,220,366
- EquityAED 1,388,997
- Cash flowAED 57,895
Year-by-year breakdown
| Year | NOI | Mortgage | Cash flow | Property value | Mortgage balance | Equity |
|---|---|---|---|---|---|---|
| Y1 | 92,500 | 78,841 | 13,659 | 1,560,000 | 1,101,770 | 458,230 |
| Y2 | 96,680 | 78,841 | 17,839 | 1,622,400 | 1,077,354 | 545,046 |
| Y3 | 101,027 | 78,841 | 22,186 | 1,687,296 | 1,051,691 | 635,605 |
| Y4 | 105,548 | 78,841 | 26,707 | 1,754,788 | 1,024,718 | 730,070 |
| Y5 | 110,250 | 78,841 | 31,409 | 1,824,979 | 996,368 | 828,611 |
| Y6 | 115,140 | 78,841 | 36,299 | 1,897,979 | 966,570 | 931,408 |
| Y7 | 120,226 | 78,841 | 41,385 | 1,973,898 | 935,251 | 1,038,646 |
| Y8 | 125,515 | 78,841 | 46,674 | 2,052,854 | 902,333 | 1,150,520 |
| Y9 | 131,015 | 78,841 | 52,174 | 2,134,968 | 867,735 | 1,267,233 |
| Y10 | 136,736 | 78,841 | 57,895 | 2,220,366 | 831,369 | 1,388,997 |
Exit at year 10
- Property value+AED 2,220,366
- Less: exit fees (4%)−AED 88,815
- Less: mortgage outstanding−AED 831,369
- Net sale proceedsAED 1,300,183
- + Cumulative cash flow (10y)+AED 346,228
- − Initial cash invested−AED 480,000
- Total returnAED 1,166,411
How to Read These Numbers
IRR is the annualised return on your invested cash. It captures everything — rental income, mortgage cost, appreciation, leverage benefit — into a single comparable number. An 8% IRR means your money grew at 8% per year on a compound basis. Dubai rental investments typically deliver 8-12% IRR at moderate leverage; below 6% is poor, above 14% is exceptional.
Total return is what you actually walk away with above your initial investment over the holding period. Equity build comes from two sources: principal pay-down (mortgage balance shrinking) and appreciation (property value growing). Both compound over time.
Cash flow is the year-by-year surplus of rental income minus mortgage payments and operating expenses. Often negative in early years (EMI exceeds NOI) but turns positive as rent grows and the mortgage amortises. Use the year-by-year table to see when your investment goes cash-positive.
Stress-test inputsbefore committing real money: drop appreciation to 1-2%, raise vacancy to 10%, cap rent growth at 2%. If the deal still works, it's robust. If it only works at 6%+ appreciation, it's a market-timing bet — not an investment.
FAQs
Internal Rate of Return — the annualised return on your investment, factoring in the timing of cash flows. A 10% IRR means your money compounded at 10%/year. It's the single best metric to compare property investments against stocks, bonds, or other deals because it accounts for both timing and magnitude.