How return is built — premium-brand case
Total return = (sum of net rent received) + (sale price − purchase price − transfer costs at exit). At Address Downtown, the rental component is meaningfully smaller than at mid-tier buildings, but the brand premium and the irreplaceable view stack typically support stronger appreciation through cycle peaks and a more durable floor through troughs.
Worked example — Address Downtown 1-Bedroom long-let
Assumptions: purchase at AED 4M (typical 1-bedroom on a mid-floor view stack), gross rent AED 180,000/year (~4.5% yield), net rent ~AED 100,000 after service charge (heavy at this tier), agent, maintenance and insurance. Capital appreciation modelled at 4% per year. Sell year 5 at ~AED 4.87M, less ~4% transfer/agency.
| Purchase price | 4,000,000 |
|---|---|
| Net rent, 5 years | ~500,000 |
| Sale price (4% p.a.) | ~4,866,000 |
| Less transfer / agency at sale | ~195,000 |
| Total return | ~1,171,000 |
| Approximate ROI | ~29% (5 years, ~5.3% annualised) |
Worked example — same unit, serviced-apartment strategy
Same unit, run as a serviced apartment via the building's own residential rental programme or via DET-permitted self-management. Assumptions: gross AED 270,000/year (~6.75% yield, hotel-style nightly rates with average occupancy), management cost 25% of gross, net rent ~AED 130,000 after service charge and other operating costs. Capital appreciation 4% per year, year-5 sale and exit costs as above.
| Purchase price | 4,000,000 |
|---|---|
| Net rent, 5 years | ~650,000 |
| Sale price (4% p.a.) | ~4,866,000 |
| Less transfer / agency at sale | ~195,000 |
| Total return | ~1,321,000 |
| Approximate ROI | ~33% (5 years, ~5.9% annualised) |
What the brand actually buys you in ROI terms
The Address Downtown brand and view premium do two specific things to total return that don't show up in yield arithmetic alone. First, in cycle troughs (2014, 2018-2020), Address-tier units fell less than mid-tier in percentage terms — the price floor is set by end-user demand that doesn't evaporate. Second, on cycle peaks, brand-named towers re-price faster than nameless equivalents because international buyers filter on brand. Net effect: a smoother appreciation path with similar long-run total return as mid-tier buildings, but with less cycle volatility.