Property Investment Analysis: Prime Dubai Real Estate 🏙️🏡
Location:
Dubai UAE
Property Type:
Residential 🏠
Property Size:
1,468 sqft
| Items | AED | USD |
|---|---|---|
| Purchase Price | 1,600,000 | 438,356 |
| Sold Price | 2,900,000 | 794,521 |
| Holding Period | 3.6 Years | |
| Capital Investment | 832,000 | 228,493 |
| Net Profit | 1,059,000 | 290,822 |
| ROIC | 127.3% |
Rental Income Calculations:
| Items | AED | USD |
|---|---|---|
| Annual Rent | 100,000 | 27,397 |
| Service Charges (12.5%) | 12,500 | 3,425 |
| Net Rent Per Year | 87,500 | 23,973 |
| Total Rental Income | 315,000 | 86,306 |
| Total Return | 1,374,000 | 377,128 |
| CoC Return | 165.0% |
Step-by-Step Transaction Process:
- Purchase (Dec 2020): The property was purchased for AED 1,600,000. 🛒
- DLD Fee (4%): AED 64,000, making the total cost of ownership AED 1,664,000. 💰
- Capital Investment: AED 832,000 (50% of purchase price) + AED 64,000 (DLD Fee) = AED 896,000. 🏦
- Holding Period: The property was held for 3.6 years. ⏳
- Annual Rent: AED 100,000 per year, with a service charge of AED 12,500 per year. 📅
- Net Rent Per Year: AED 87,500. 💸
- Total Rental Income: AED 87,500 * 3.6 years = AED 315,000. 📈
- Sale (Jul 2024): The property was sold for AED 2,900,000. 🏷️
- Net Profit: AED 2,900,000 - AED 1,664,000 = AED 1,236,000. 💵
- Total Return: Net Profit + Total Rental Income = AED 1,236,000 + AED 315,000 = AED 1,551,000. 🔄
- CoC Return: Total Return / Capital Investment = AED 1,551,000 / AED 896,000 = 173.1%. 📊
- ROIC: ((Net Profit + Total Rental Income) / Capital Investment) * 100 = (AED 1,551,000 / AED 896,000) * 100 = 173.1%. 📈
Per SQ FT Price at Sale:
AED 2,900,000 / 1,468 sqft = AED 1,975 per sqft
Legal Disclaimer
This document and its contents, including any calculations and analyses, are provided for informational and educational purposes only and should not be construed as financial advice, an offer, or a guarantee of future performance. The information herein is simplified to enhance understanding and does not reflect the complexity of real-world financial decisions. Past performance is not indicative of future results, and investments in real estate are subject to market risks and uncertainties that can result in the loss of principal. PHOREE Real Estate, including its owners, managers, employees, and consultants, makes no warranties or guarantees regarding the accuracy, reliability, or completeness of the information provided. The company and its affiliates shall not be liable for any errors or omissions in the content, or for any actions taken in reliance thereon. Investors are strongly advised to consult with professional financial advisors before making any investment decisions. The responsibility for any investment decision lies solely with the investor, and PHOREE Real Estate disclaims any liability for financial loss or damage that may result from such decisions. By accessing and using this information, the reader agrees to the terms of this disclaimer and acknowledges that they are acting on their own behalf and at their own risk in any investment decisions.
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