UAE off-plan glossary
ROI
Total return on investment, combining rental income with capital appreciation from purchase to sale.
Quick answer
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.