Avg Purchase Price
AED 1.4M
Year 1 Net Rental
AED 69K
5-Yr Cumulative
AED 370K
Total 5-Yr Return
36.2%
Year-by-Year Cash Flow
Year 1
AED 59,000
Year 2
AED 61,200
+3.7% YoY
Year 3
AED 63,600
+3.9% YoY
Year 4
AED 66,100
+3.9% YoY
Year 5
AED 68,800
+4.1% YoY
Return Components
Rental Cash Flow (5 years)AED 370K
Property Appreciation (8.0%)AED 108K
Total ProfitAED 478K
Total Return %36.2%
Key Assumptions
•Rental growth: 2-3% annually based on market trends
•Operating costs: 15% of gross rent (maintenance, agent fees, vacancy)
•Appreciation: 8.0% 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 business bay
| Type | Price | Year 1 Net | 5-Yr Total | Return % |
|---|---|---|---|---|
| 1BR | AED 1.1M | AED 59K | AED 319K | 37.0% |
| 2BR | AED 1.6M | AED 78K | AED 422K | 35.4% |