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Investment Returns
Updated over a week ago

People invest in real estate to earn passive rental income, realize capital gains from rising markets, or both!

Both rental returns and capital appreciation are important factors to consider when evaluating the potential performance of a property investment. Rental returns provide an ongoing income stream, while capital appreciation provides the potential for long-term growth in the value of the investment.

• Rental Returns

The return you receive on a rental property, calculated by dividing the yearly rental income by the property’s purchase price. So, if the property is purchased for AED 1M and the rental income generated is AED 80,000, then the rental return is 8%.

• Capital Appreciation

The growth in property value over time, measured by the difference between its current value and initial purchase price. So, if a property purchased for AED 1m was sold for AED 1.4m, then the profit of AED 400k over an AED 1m investment would represent a capital appreciation of 40%.

You receive your returns proportionate to the percentage of the property you own as a shareholder (Issued via the SPV) on a monthly basis. The returns available to property owners are calculated as the monthly rent collected from tenants, minus the property-related costs, which include but are not limited to, service charges, repairs & maintenance, property insurance, and management fees.

If the property has risen in value, you will also get to earn investment returns through capital appreciation after exit. Estimates of future returns are provided with the property listing on the platform. Our estimates are available for review as part of the investment process.

However, it is important to note that this information is based on past performance and expected returns given current market conditions, which cannot be regarded as an accurate indicator of future results. SmartCrowd does not provide investment advice. We only provide you with the tools and transparent market information to help make your investment decision.

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