Apartment buying guide · Abu Dhabi
Compare two Abu Dhabi investment apartments
A cheaper apartment can need less cash upfront yet leave you with less cash each year. Compare both commitments before choosing.
What this example shows
A saves AED 50,000 upfront. B leaves AED 8,050 more per year. Check which cash commitment fits your budget.
Apartment A
- Cash to plan for, including reserve
- 505,000
- Annual cash remaining after costs and mortgage
- +700
Apartment B
- Cash to plan for, including reserve
- 555,000
- Annual cash remaining after costs and mortgage
- +8,750
Both need cash support in the downside scenario. These are illustrative annual cashflows, not total investment returns.
Start with the same decision and time period
Compare two completed Abu Dhabi apartments for long-term rental over the same full operating year. Apply the same vacancy and management assumptions while keeping each building’s costs and financing visible. Budget separately for any delay before the unit can be rented.
Work through the numbers
Illustrative assumptions: both apartments are 1,000 sq ft. All amounts are invented, include applicable tax and are not listings, bank quotes or Calder outputs. Principal-and-interest mortgage payments are assumed separately; no loan eligibility or interest rate is implied.
| Item | A | B |
|---|---|---|
| Purchase price | 1,800,000 | 2,000,000 |
| Asking price per sq ft | 1,800 | 2,000 |
| Assumed loan | 1,440,000 | 1,600,000 |
| Personal purchase contribution | 360,000 | 400,000 |
| Assumed acquisition fees | 100,000 | 110,000 |
| Preparation allowance | 15,000 | 15,000 |
| Cash retained as a reserve | 30,000 | 30,000 |
| Total personal cash to plan for | 505,000 | 555,000 |
The reserve remains your cash. A deposit credited towards the price is already part of the purchase contribution. Replace these fee allowances with itemised quotes; the buying-cost guide shows how to reconcile the budget.
| Item | A | B |
|---|---|---|
| Full-year rent assumption | 120,000 | 132,000 |
| Gross yield, rounded | 6.67% | 6.60% |
| Lost rent: one month | −10,000 | −11,000 |
| Rent received | 110,000 | 121,000 |
| Service charges | −24,000 | −18,000 |
| Management: 5% of receipts | −5,500 | −6,050 |
| Maintenance allowance | −3,000 | −3,000 |
| Separate property insurance | −1,200 | −1,200 |
| Cash before mortgage | 76,300 | 92,750 |
| Mortgage: 12 × 6,300 / 7,000 | −75,600 | −84,000 |
| Annual cash remaining | 700 | 8,750 |
| Monthly average, rounded | 58 | 729 |
A’s slightly higher gross yield does not carry through to cashflow. B’s higher rent and lower service charges more than offset its higher mortgage payment. Decide whether the extra upfront cash fits your budget, then verify the assumptions that produce that advantage.
Apply the same downside to both
Reduce each full-year rent by 10% and allow two months without rent. Keep service charges, maintenance, insurance and debt payments unchanged; management remains 5% of receipts.
| Item | A | B |
|---|---|---|
| Reduced full-year rent | 108,000 | 118,800 |
| Rent received after vacancy | 90,000 | 99,000 |
| Management fee | −4,500 | −4,950 |
| Annual cash remaining after all listed costs and debt | −18,300 | −12,150 |
| Monthly average, rounded | −1,525 | −1,013 |
Could you fund either shortfall? The annual figures exclude acquisition and selling costs, value changes, personal taxes, major one-off repairs and separate mortgage life insurance. Acquisition cash is budgeted above; add other applicable costs. Principal repayment reduces debt but still consumes cash.
Check whether each price and rent has support
A’s lower asking rate does not prove it is better value. Check each apartment against relevant historical evidence for its project, layout, area and completion status. Do not apply one community median to both by default. Read the historical-price guide for sample dates, coverage and repeated-record limitations. No historical price evidence is supplied for these fictional apartments.
- Rent: distinguish a signed lease, an asking rent and your estimate. Check lease terms and the availability of the unit. Calder does not supply a rental benchmark.
- Building costs: obtain the unit’s current approved service-charge budget and statement, and inspect maintenance needs. ADREC’s Community Affairs guidance explains service-charge budgets and approval; it does not support the invented charges above.
- Financing: use separate written terms for each property. Compare the approved loan, repayment schedule, reset terms and separately charged insurance.
Compare your own two properties in Calder
- Assess and save each property with its own price, size, rent and financing assumptions.
- Open saved properties, select both for comparison, and read the upfront cash and Year 1 monthly cashflow alongside the evidence labels.
- Check the assumptions yourself: Calder preserves each saved version; it does not automatically make financing, rent or holding periods identical.
- Use Save a copy for downside versions so the original assessments remain available. Compare the same downside changes across both.
Calder’s result depends on all selected settings. Saves remain in the same browser and web address, without cloud backup.
Before deciding: identify the property that fits your cash budget, the assumption most likely to reverse your comparison, and the evidence you need to verify it.