Assumptions & Methodology
• UAE Context: Property tax set to AED 0 by default (UAE has no annual property tax). DLD registration fees, mortgage arrangement fees, and other one-time acquisition costs are excluded (pre-ownership). Income tax defaults to 0% for UAE-based individual investors.
• Long-Term Rental: 5% RERA-standard agency fee on gross annual rent, 5% vacancy allowance, 1% maintenance (of property value), 3% annual rent growth.
• STR / Airbnb: 3% platform fee + 15% holiday home management fee, 8% supplies & turnover, 2% maintenance (higher due to wear), ~30% higher insurance premium, 4% annual rate growth.
• Vacation Home: 20–25% specialist vacation property manager fee, 6% supplies & marketing, 1.5% maintenance, 20% insurance loading, 3% annual rate growth.
• Appreciation is applied annually to property value. Equity gain is included in Total Return but not in Net Cash Flow.
• All figures are indicative estimates for planning purposes. Consult a RERA-registered broker and licensed financial advisor for deal-specific analysis.