How return is built
Total return = (sum of net rent) + (sale price − purchase price − transfer costs). Refurbishment can add value beyond cycle appreciation.
Worked example — original 1BR, 5-year hold
Assumptions: purchase AED 1.5M, gross rent AED 80K (5.3%), net AED 55K. Capital appreciation 3.5%/year.
Original 1BR — 5-year return (AED, indicative)
| Purchase price | 1,500,000 |
|---|---|
| Net rent, 5 years | ~275,000 |
| Sale price (3.5% p.a.) | ~1,782,000 |
| Less transfer / agency | ~71,000 |
| Total return | ~486,000 |
| Approximate ROI | ~32% (5 years, ~5.7% annualised) |
Refurbishment lever
Refurbished comparables price 25-35% above original-finish at Burj Views — meaningful uplift opportunity for capital-ready investors.