How return is built
Total return = (sum of net rent) + (sale price − purchase price − transfer costs).
Worked example — T1 1BR mid-floor, 5-year hold
Purchase AED 1.7M, gross AED 88K (5.2%), net AED 60K. 4% appreciation.
T1 1BR — 5-year return (AED, indicative)
| Purchase price | 1,700,000 |
|---|---|
| Net rent, 5 years | ~300,000 |
| Sale price | ~2,068,000 |
| Less transfer / agency | ~83,000 |
| Total return | ~585,000 |
| Approximate ROI | ~34% (5 years, ~6.0% annualised) |
Worked example — T2 1BR, 5-year hold
Purchase AED 1.5M, gross AED 80K (5.3%), net AED 55K. 3.5% appreciation (lower than T1 view stacks).
T2 1BR — 5-year return (AED, indicative)
| Purchase price | 1,500,000 |
|---|---|
| Net rent, 5 years | ~275,000 |
| Sale price | ~1,782,000 |
| Less transfer / agency | ~71,000 |
| Total return | ~486,000 |
| Approximate ROI | ~32% (5 years, ~5.7% annualised) |
Stress-tests
T1 view-side units have stronger downside protection from end-user demand. T2 has lower absolute capital exposure but less view premium to support appreciation.