Updated 5 October 2026 · Illustrative calculation
A ready apartment can earn rent once it is let. An off-plan apartment spreads the purchase payments, but earns no rent before completion. To compare them, put the cash payments and income on the same calendar.
Here are two hypothetical AED 2 million purchases. These are calculation examples, not available properties, bank offers or price forecasts. Both use 40% buyer equity and a possible 60% mortgage once the property is completed and eligible.
How much cash do you need?
The ready resale needs AED 800,000 towards the price. We assume the buyer pays the full 4% DLD fee and agrees to 2% agency commission plus 5% VAT on that commission. Our buying-cost guide explains which charges depend on the transaction.
| Item | AED |
|---|---|
| 40% equity | 800,000 |
| 4% DLD registration | 80,000 |
| Agreed agency fee, including VAT | 42,000 |
| Sale trustee fee, including VAT | 4,200 |
| 0.25% registration on AED 1.2m mortgage | 3,000 |
| Other purchase and bank costs: assumed allowance | 10,800 |
| Total cash budget | 940,000 |
The AED 10,800 allowance covers assumed bank, valuation, title, administration and other closing costs; replace it with itemised quotations. It is not a published fee package. Keep an additional emergency reserve.
For the new developer purchase, assume a 20/20/60 payment schedule: 20% at booking, 20% during construction and 60% at handover in two years. Add AED 80,000 DLD and an assumed AED 5,000 administration charge at booking, with no buyer agency fee.
Off-plan cash before handover
The intended handover mortgage still needs approval. Review the funding conditions and project and escrow checks before committing.
What does the ready apartment earn?
Assume AED 140,000 annual rent and AED 25,000 for service charges, maintenance, insurance, management and vacancy. That leaves AED 115,000 before financing: a 5.75% net operating yield on the purchase price.
An illustrative AED 1.2 million repayment mortgage at 5% annual interest over 25 years costs approximately AED 7,015 monthly. This calculation assumes an unchanged rate and monthly repayments.
One year of ready-property cash flow
Rent AED 140,000
Less operating allowance AED 25,000
Less mortgage repayments AED 84,181
Cash remaining: AED 30,819
Does a 10% off-plan price rise mean a 25% return?
A hypothetical rise from AED 2 million to AED 2.2 million is AED 200,000. Dividing that by AED 800,000 paid towards the price gives 25%, but leaves out costs.
Assume a permitted resale before handover, with the buyer taking over the AED 1.2 million balance. Deduct the AED 85,000 entry costs and an assumed seller agency fee of 2% plus VAT on AED 2.2 million: AED 46,200. The gain falls to AED 68,800, or 7.8% of AED 885,000 cash deployed, before other resale charges and any tax. That is a total return over the holding period, not an annual return. Prices can also fall; resale permissions and payment thresholds need checking.
Which suits your budget?
Compare actual units in Dubai Hills Estate or Dubai Creek Harbour using the same method. Ready property offers inspectable rental evidence. Off-plan requires a funded instalment schedule and room for delays. Choose a purchase you can complete even if the expected resale never happens.
Compare two properties before choosing
Send us the two prices, payment schedules and your available cash. We can help identify the property costs and questions to put to your lender.
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