Avg Purchase Price
AED 2.0M
Year 1 Net Rental
AED 83K
5-Yr Cumulative
AED 452K
Total 5-Yr Return
47.2%
Year-by-Year Cash Flow
Year 1
AED 68,000
Year 2
AED 71,000
+4.4% YoY
Year 3
AED 74,200
+4.5% YoY
Year 4
AED 77,500
+4.4% YoY
Year 5
AED 81,000
+4.5% YoY
Return Components
Rental Cash Flow (5 years)AED 452K
Property Appreciation (18.0%)AED 360K
Total ProfitAED 812K
Total Return %47.2%
Key Assumptions
•Rental growth: 2-3% annually based on market trends
•Operating costs: 15% of gross rent (maintenance, agent fees, vacancy)
•Appreciation: 18.0% 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 palm jumeirah
| Type | Price | Year 1 Net | 5-Yr Total | Return % |
|---|---|---|---|---|
| 1BR | AED 1.6M | AED 68K | AED 372K | 50.3% |
| 2BR | AED 2.4M | AED 98K | AED 532K | 44.1% |