Avg Purchase Price
AED 1.1M
Year 1 Net Rental
AED 55K
5-Yr Cumulative
AED 298K
Total 5-Yr Return
32.5%
Year-by-Year Cash Flow
Year 1
AED 45,000
Year 2
AED 46,800
+4.0% YoY
Year 3
AED 48,600
+3.8% YoY
Year 4
AED 50,500
+3.9% YoY
Year 5
AED 52,500
+4.0% YoY
Return Components
Rental Cash Flow (5 years)AED 298K
Property Appreciation (4.0%)AED 42K
Total ProfitAED 340K
Total Return %32.5%
Key Assumptions
•Rental growth: 2-3% annually based on market trends
•Operating costs: 15% of gross rent (maintenance, agent fees, vacancy)
•Appreciation: 4.0% over 5 years (historical average)
•Hold period: Full 5 years with exit at appreciated value
•Transaction costs: Not included in calculations (assume 5-7% exit costs)
Property Types in the greens
| Type | Price | Year 1 Net | 5-Yr Total | Return % |
|---|---|---|---|---|
| 1BR | AED 0.8M | AED 45K | AED 243K | 32.8% |
| 2BR | AED 1.3M | AED 65K | AED 352K | 32.1% |