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Dubai Property ROI Calculator

Model the total return on a Dubai property investment. Combines net rental income, DLD registration fee, and compounded capital growth into a single annualized ROI number.

Annualized ROI

10.76%

↑ Strong

Purchase price
AED
DLD registration fee
%

Standard Dubai Land Department transfer fee is 4 percent of purchase.

Annual rent
AED / year
Annual expenses
AED / year

Service charges, maintenance, cooling, management. Exclude mortgage.

Expected annual capital growth
%
Holding period
years
Total ROI
53.81%
Rental yield
5.45%
Capital gain
AED 414,422
Total return
AED 839,422
Rental income
AED 425,000
Total investment
AED 1,560,000
How this is calculated

Total investment = purchase + (purchase x DLD%)

Capital gain = purchase x ((1 + growth%)^years - 1)

Total return = (annual rent - expenses) x years + capital gain

Total ROI % = (total return / total investment) x 100

Annual ROI divides total ROI by the holding period. Capital growth compounds annually.

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We'll benchmark your growth assumption against DLD sales data and pressure-test your expense line in a free 30-minute call.

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FAQ

Common questions

What counts as a good ROI for a Dubai property?

Investor grade Dubai stock typically delivers 8 to 12 percent annualized ROI when you combine net rental income and capital growth. Anything above 12 percent is exceptional and usually driven by high yield communities like JVC or Dubai South. Below 5 percent annualized is a signal the asset is priced for prestige rather than returns.

Do I need to include the DLD fee in my total investment?

Yes. The Dubai Land Department transfer fee is 4 percent of the purchase price and is paid on completion. Excluding it inflates your ROI on paper. Serious underwriting always adds DLD plus agency, mortgage registration, and any conveyancing to the base of the return calculation.

How is capital growth calculated over a holding period?

Capital gain is compounded, not linear. The formula is purchase price times ((1 plus growth rate) to the power of years) minus purchase price. So a 5 percent annual growth on an AED 1.5M unit over 5 years yields roughly AED 414,000, not AED 375,000. This is why holding period matters so much for total return.

Should I use gross rent or net rent in ROI?

Always net rent. Gross rent ignores service charges, maintenance, cooling, agency management, and vacancy. In Dubai, service charges alone often eat 8 to 15 percent of gross rent, and Chiller and DEWA reset costs on turnover. Underwriting on gross always looks better than the deal really is.
Need help interpreting your numbers?

Ready to talk to our UAE team about your Dubai property?

Calculators give you the formula. We help you turn it into a strategy that ships. Free 30-minute consult, no pitch deck, no commitment.

Noseberry Digitals, Full-Stack Real Estate & PropTech Digital Agency