How return is built — yield-led case
Total return = (sum of net rent received) + (sale price − purchase price − transfer costs at exit). At a yield-led building, the rent contribution carries more of the total return, while capital appreciation is the secondary upside.
Worked example — Burj Crown, 1-Bedroom, 5-year hold
Assumptions: purchase at AED 1.5M (mid-range 1-bedroom), gross rent ~AED 90,000/year (6.01% yield), net rent ~AED 70,000 after OA, agent, maintenance and insurance. Capital appreciation modelled at 4% per year. Sell year 5 at ~AED 1.82M, less ~4% transfer/agency.
| Purchase price | 1,500,000 |
|---|---|
| Net rent, 5 years | ~350,000 |
| Sale price (4% p.a.) | ~1,825,000 |
| Less transfer / agency at sale | ~73,000 |
| Total return | ~602,000 |
| Approximate ROI | ~40% (5 years, ~7.0% annualised) |
Worked example — Burj Crown, 2-Bedroom, 5-year hold
Assumptions: purchase at AED 2.5M (entry 2-bedroom), gross rent ~AED 146,000/year (5.84% yield), net rent ~AED 110,000. Capital appreciation 4% per year. Sell year 5 at ~AED 3.04M, less 4% costs.
| Purchase price | 2,500,000 |
|---|---|
| Net rent, 5 years | ~550,000 |
| Sale price (4% p.a.) | ~3,041,000 |
| Less transfer / agency at sale | ~122,000 |
| Total return | ~969,000 |
| Approximate ROI | ~39% (5 years, ~6.8% annualised) |
Stress-test cases
Flat-appreciation case: returns hold at net yield only — ~23% over 5 years on the 1BR example, similar on the 2BR. Down-cycle case: rebase year-5 sale price at 0% appreciation, accept the higher-than-average yield as floor. Burj Crown's yield cushion is wider than at Burj Royale or Opera Grand, which makes the building more resilient to capital-flat or modestly negative scenarios.