The True Cost of Investing in Dubai Real estate : ROI Breakdown with all expenses

When it comes to real estate investment, Dubai is one of the most popular destinations in the world. With its stable economy and growing skyline, Dubai offers investors a wealth of opportunities when it comes to property investment.
With so many options on the market, it can be difficult to know how to calculate ROI for Dubai property investments. Here we take a look at some key things you need to consider when making your decision:
Location - The first thing you need to consider is the location of your potential investment. Factors such as population growth, infrastructure development and proximity to other amenities are all important considerations.
Type of Property - Next you need to decide what type of property you want invest in. Whether its apartments, villas or commercial properties there are plenty options available in Dubai's ever-growing real estate market.
Size and Age - Another key consideration is size and age of the property - both factors that will impact ROI . A newer more luxurious building may offer a higher return than an older less glamorous one but this needs weighed against other factors such as maintenance costs etc.. 4) Rental Yields - When calculating ROI for any real estate investment rental yields should always be taken into account . In order maximize profits landlords should aim for rents which cover at least 125% of their mortgage repayments (or 150% if they don’t have a mortgage).
If you are looking to invest in Dubai property and wondering what the potential return on investment (ROI) could be - use our ROI calculation guide to help you figure out your estimated earnings.
First - property costs - price of purchase inclusive of the fees (legal, stamping, transfer fee of 4%, broker fees);
Next is rental revenue over time (normally over a year). You need to know how much rent you can expect to earn on your investment each year;
Finally, operational cost of property comes into the picture. Annual service charges, maintenance costs, and so on.
We will add up all these figures to get an idea of what kind of annual return on investment (ROI) you can expect from your Dubai property:
ROI = ((Revenue - Operational Costs) / Total Property Cost)*100%
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