The friction cost trap
In Dubai, buying a property involves a 4% Dubai Land Department fee, 2.1% agent commission, plus trustee, title, and DEWA deposit costs. On a AED 1M apartment that's AED 65,000+ before you own a single brick.
Gross yields of 7% quickly compress to 4-5% net once you account for the full cost base - and that's before vacancy, management fees, or service charges. The calculator adds these buying costs for each GCC country.
Net yield vs gross yield
Service charges in Dubai Marina can exceed AED 20 per sq ft per year. Add 7-10% management fees, an 8% vacancy allowance, plus Bahrain's municipal charge if your lease makes you pay it, and net yield ends up well below gross.
The calculator shows both, and whether rental income alone can justify the purchase against a diversified ETF over your hold period. The net yield is the number that matters.
How the ETF comparison works
The chart places your total cash invested (down payment plus all friction costs for a mortgage purchase, or the full price plus friction for cash) into both scenarios at year zero. The ETF line grows at the rate you choose - compounding annually (7% is a common long-run planning figure for a global ETF like VWRA, after its 0.14% charge).
The property line tracks your equity assuming zero price appreciation: equity in year Y = (purchase price minus remaining loan balance) plus cumulative net cash flow. This conservative baseline makes the hurdle calculation meaningful - if property beats the ETF at zero appreciation, any price growth is pure upside.
Understanding the required appreciation
The verdict panel solves for the sale price that makes the property investor exactly as wealthy as the ETF investor at the chosen hold period - after paying exit costs. If that price implies appreciation greater than 5% per year, the property requires exceptional market conditions to justify the illiquidity and concentration risk.
Saudi Arabia has two sale charges to check. The 5% Real Estate Transaction Tax applies to every sale. The seller is liable, though buyers often agree to pay it. Non-Saudi owners also pay REGA a disposal fee when they sell. The law caps it at 5%, and the 2026 regulations set it at 2% in Riyadh, Makkah, Madinah and Jeddah. Depending on who pays the tax, selling can cost you 7% or more before agent fees. Qatar's QAR 3.65M property tier comes with residency and some healthcare and education benefits, subject to conditions. If you'd use them, they're worth something, so factor them in.
UAE
Qatar
Saudi Arabia
Bahrain
Oman