UAE off-plan glossary
ROI
Total return on investment, combining rental income with capital appreciation from purchase to sale.
ROI (return on investment) for an off-plan property combines two sources: rental income (typically realised from handover onwards) and capital appreciation (the difference between purchase price and resale price). UAE off-plan investors frequently target 30–60% capital appreciation by handover plus 6–7% annual gross yield post-handover.
FAQ
What’s a good ROI in Dubai real estate?
Off-plan investors typically target 30–60% capital appreciation by handover plus 6–7% annual gross yield post-handover, for a combined IRR of 12–20% over a 4–6 year hold.
How is ROI different from yield?
Yield only measures rental income. ROI measures total return including both rental income AND capital appreciation between purchase and sale.