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What is ROI?
Return on Investment (ROI) shows how much profit you make from a property compared to your total costs.
In Dubai, ROI takes into account:
✔ The property’s purchase price
✔ Ongoing costs (maintenance, service fees, mortgage)
✔ Rental income
✔ Capital appreciation
Why ROI Matters
Dubai’s property market is fast-growing with new launches and expanding communities. ROI helps investors compare returns between areas, property types, and investment strategies — such as long-term rentals versus short-term holiday lets.
How to Calculate ROI
Formula: ROI = (Net Profit ÷ Total Investment) × 100
Example:
If you buy a property for AED 1,500,000 and earn AED 120,000 net per year, your ROI is 8%.
A return between 6–9% is generally considered strong in Dubai.
💡 Always use net income, not gross rent, for accuracy.
What Is a Good ROI in Dubai?
Returns vary, but Dubai often offers higher yields than many global markets.
- Apartments: 5% to 8%
- Villas: 4.5% to 7%
- Off Plan: 6% or more after handover
Top areas for ROI include Jumeirah Village Circle (6.5–8%), Dubai Marina (5–6.5%), Business Bay (5–6%), The Greens (6–7%), and Dubai Silicon Oasis (up to 7.5%).
Factors That Affect ROI
- Location and accessibility
- Developer reputation
- Quality and furnishing
- Market demand and supply trends
Off Plan vs. Ready Properties
Off Plan properties offer lower entry prices and strong appreciation potential, though rental income starts only after handover.
Ready properties generate immediate rent and provide more predictable returns — ideal for investors seeking stability.
ROI vs. Rental Yield
Rental yield measures yearly rental income only, while ROI includes both rent and property value growth, showing total profitability over time.
Common ROI Mistakes
✔ Ignoring service charges and fees
✔ Overestimating rental prices
✔ Forgetting transaction costs (DLD, commission, mortgage)
✔ Assuming appreciation without research
Calculate Your ROI
Try the haus & haus Rental Yield Calculator to estimate your potential returns.
For tailored guidance, our expert consultants can help you identify properties with the best ROI in Dubai
