Avg Purchase Price
AED 4.5M
Year 1 Net Rental
AED 125K
5-Yr Cumulative
AED 689K
Total 5-Yr Return
26.3%
Year-by-Year Cash Flow
Year 1
AED 125,000
Year 2
AED 131,000
+4.8% YoY
Year 3
AED 137,500
+5.0% YoY
Year 4
AED 144,200
+4.9% YoY
Year 5
AED 151,500
+5.1% YoY
Return Components
Rental Cash Flow (5 years)AED 689K
Property Appreciation (11.0%)AED 495K
Total ProfitAED 1184K
Total Return %26.3%
Key Assumptions
•Rental growth: 2-3% annually based on market trends
•Operating costs: 15% of gross rent (maintenance, agent fees, vacancy)
•Appreciation: 11.0% 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)