Investing in Dubai real estate can generate solid returns due to high profitability and steady demand. Let’s break down what return on investment (ROI) means and how to calculate it for your property.

Average ROI in Dubai

The average return on investment in Dubai’s real estate market ranges from 5% to 8% per year. This means you can expect an annual return of 5−8% of your investment through rental income and rising home values.

What Is ROI?

ROI (Return on Investment) is a key metric that shows how much profit you make from your investment. In real estate, ROI is calculated as the ratio of annual rental income to the total purchase cost of the property.

How to Calculate ROI?

To calculate ROI, you need:

• Annual rental income
• Total purchase cost of the property

The formula for calculating ROI is as follows:
ROI = (Annual rental income / Total property purchase cost) x 100

Example calculation:
If you purchase an apartment for 1,000,000 AED and rent it out for 70,000 AED per year, your ROI will be:
ROI = (70,000 / 1,000,000) x 100 = 7%

Considering Additional Costs
For an accurate ROI calculation, it’s important to factor in all expenses, including taxes and fees. We’ve created an ROI calculator to help you quickly assess your potential returns, considering all costs.

Conclusion

Investing in Dubai real estate offers stable and attractive returns. Use our ROI calculator to estimate your potential profit and make informed investment decisions.