How do I calculate the returns on my investment?
Investing in real estate through WeProperties offers two primary types of returns: rental income and capital appreciation.
- Rental Income: This is the recurring income generated from leasing the property to tenants. For example, if a property valued at AED 2 million generates AED 160,000 annually in rental income, the gross rental yield is 8%.
If in our example property, the operational costs, such as property management fees, maintenance charges, and service charges add up to AED 40,000. The net rental income here is now AED 120,000 which means that the net rental yield is 6%. These earnings are proportionally distributed to investors based on their share in the property. - Capital Appreciation: Over time, properties typically increase in value due to market demand and development in the area. For instance, if a property purchased for AED 2 million appreciates to AED 2.8 million over a three-year investment term, investors benefit from the profit realized at the time of sale with an overall return of 40% in this example (13.33% average annual appreciation).
WeProperties ensures that all returns are transparently calculated and shared through detailed reports accessible via your investor dashboard. Please note that rental and appreciation returns are impacted by market conditions and returns sometimes are not guaranteed.
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