Annual appreciation: projected growth in the market value of the asset over 1 year

For example, consider a property that is acquired at a price of AED 1,000,000 with buying costs worth AED 100,000. The total investment amount is AED 1,100,000.

Assuming the property is sold after a few years at a price of AED 1,500,000 (net of selling costs), the capital appreciation is AED 400,000, or 36.4% (i.e. AED 400,000 / AED 1,100,000).

Annualised return: Total ROI over 5 years (rental income/net yield + annual appreciation) however averaged on an annual basis.

Our properties usually have around a 50% total ROI over 5 years, so averaging out over a yearly basis is around 10%.

Gross yield:projected annual percentage return that investment generates before deducting all expenses, like management fees and maintenance costs

For example, if a property is priced at AED 1,000,000 and rented for AED 100,000 per year, that property generates a gross income of AED 100,000 and a gross yield of 10%.