Real Estate ROI – What you need to know

By Rocky Real Estate

Real Estate ROI – What you need to know

Due to the growth of business establishments in Dubai, more and more people are relocating to the Emirate to try their luck to secure a better job or business opportunities. This also creates new opportunities for those who have real estate properties and apartments for sale in downtown Dubai.

Whenever you put your money down to invest in a real estate property for sale, apartments for rent in Dubai, or in any kind of business, it is often meant to make more money. If you are not making any profit on your investments, it would be best to investigate what is causing the problem and find out what you can do to make your investments profitable.


What is ROI in real estate?

Return on investment or ROI is a measurement of how much money or profit is made on investment as a percentage of its cost. It is a metric that shows how well your investments are being used. It pays to know both what ROI is and how to calculate ROI in real estate.

Whether you’re new to investing or if you already own property for sale in Dubai, you need to know the details about the property to make sure that you will be able to get the most out of your money.

Listed below are some of the factors that you need to consider when calculating the ROI for your home and/or apartments for sale in Dubai:

  • Purchase price/down payment
  • Monthly expenses (insurance or/and utilities)
  • Taxes
  • Home/property improvement costs
  • Any other fee

Whether you’re offering a 1-bedroom home for sale or 3-bedroom apartments for rent in Dubai Silicon Oasis calculating your ROI can be complex due to other factors that you need to evaluate.
What you should consider as a good ROI may not be good enough for others, it all depends on how much you have invested and how much you have gained despite the risks.


How do I get my ROI?

ROI for real estate properties come from two main sources:

  • Regular income from rents or dividends; and
  • Appreciation from holding a piece of real estate or a real estate investment trust stock over time.

With decades of experience in the real estate industry, Rocky Real Estate has the right knowledge, expertise, and experience to help you obtain the best return on your real estate investment.