Most Dubai buyers calculate breakeven as “what I paid.” That’s the mistake. Breakeven is what I paid plus everything I spent holding it.
The number people underestimate most is the opportunity cost of the down payment sitting in property versus a US Treasury at 4-5%. Strip that out and a Dubai unit that appreciates 15% over three years, looking profitable on paper, might have only marginally beaten a risk-free alternative once you’re honest about the numbers.
A client earlier this year wanted to sell at what he thought was break-even. Once I ran the full stack he needed another 6% of appreciation to actually walk away whole. He kept it, rented it out, the math now works through the yield.
Calculate break-even before you buy, not before you sell.
Related: Holding Cost, Opportunity Cost, Exit Strategy, Cash Flow.