UAE: Did you know that ‘yields’ and ‘returns’ (ROI) have slightly different meanings when investing in real estate? Let’s find out!

UAE: Did you know that ‘yields’ and ‘returns’ (ROI) have slightly different meanings when investing in real estate? Let’s find out!

Dubai: Smart investors understand that investing in real estate is the best way to make a good passive income. It's a great medium to put your money to work, making financial gains. Investing in the property market in the UAE, in particular, is considered a lucrative investment destination, as the place generates high rental yields when compared to several other property investment havens worldwide. "Dubai's emerging and budget freehold areas offer higher yields of nearly 9 per cent, followed by midmarket neighbourhoods," said Vijay Valecha, chief investment officer at Dubai-based investment brokerage Century Financial. "Whereas Abu Dhabi's yields averaged at 7.4 per cent, with apartment returns at 7.7 per cent and villas 6.9 per cent." Although these figures look attractive, an informed investor must understand what a property deal is worth for them when taking a plunge into the real estate market. Evaluating the profit figure carefully to figure out whether the property will make good financial gains or yields for you becomes a vital part of property investment. You must check whether developers, brokers, marketers, property advertisements, and the real estate consultancy reports highlight the gross yields, net yields, and total returns on investment (ROI) to determine the property's