Jack GallowayDubai Real Estate

Tools

Off-Plan IRR Calculator

Most off-plan calculators show you ROI. It's the wrong lens. ROI tells you how much you made — it says nothing about how long your money was tied up to make it. Two deals can show the identical 40% ROI while one returned it in two years and the other in five; ROI can't tell them apart. Off-plan payments are staggered across a construction timeline, not paid in one lump sum, and a developer running late doesn't just delay your keys — it delays the point at which your capital starts working for you again, even if your eventual profit doesn't change at all.

The correct metric is IRR — Internal Rate of Return — or more precisely XIRR (the same calculation adjusted for irregular payment dates, since off-plan instalments rarely land on neat annual anniversaries). It's the annualised return that accounts for exactly when each payment went out and when your return came back. This calculator builds your actual payment schedule, lets you stress-test a developer delay of up to five years, and shows you the real, time-weighted return — not just the headline number.

Headline

Nominal XIRR

3.7%

money-weighted, date-accurate

Simple ROI

4.8%

over 3.0 years — time blind

Total profit

AED 100,341

Total cash out

AED 2,085,290

Inputs

The Property

Off-plan units sit on the Oqood interim register, so Oqood registration fees (4% DLD + AED 40 admin + trustee fee) are applied automatically.

Exit Strategy

How do you plan to exit?
(You complete the purchase and take title. A holding period of 0 sells at handover; anything above holds and lets.)

Developer Delay

What if handover slips?

0months

On time12 months60 months

Handover moves from Jan 1973 to Jan 1973. Post-handover instalments, rent and the exit event all move with it; calendar-dated instalments before handover do not.

Show real (inflation-adjusted) IRR

Payment schedule

100.00% of 100%
Deposit
Date
Instalment
Date
Handover
Date
Is the full remaining balance due at handover, or are there post-handover instalments?

Return

Nominal XIRR3.67%

Solved iteratively from the dated cash-flow array.

Real IRR0.65%

After 3% annual inflation.

Simple ROI4.81%

Profit over total cash out, ignoring when each dirham was paid. The gap between this and XIRR is the value of time.

Time to exit3.0 years

Acquisition

DLD fee (4%)AED 80,040

(4% + AED 40 Oqood administration fee)

Registration trustee feeAED 5,250
Fees at time zeroAED 85,290
Total cash outAED 2,085,290

Exit

Exit dateJan 1973
Sale priceAED 2,185,631
NOC fee (on sale)AED 0

(Developer/OA no-objection certificate to clear service charges before transfer.)

Selling costsAED 0

(0% broker fee + VAT, the NOC fee and any mortgage release costs)

Total cash inAED 2,185,631
Total profitAED 100,341

Cash-flow schedule

Jan 1970 — DLD + registration fees−AED 85,290
Jan 1970 — Deposit−AED 400,000
Jan 1971 — Instalment−AED 600,000
Jan 1973 — Handover−AED 1,000,000
Jan 1973 — Sale at handover+AED 2,185,631

Want me to run a specific developer’s payment plan through this properly?

Send these numbers to Jack

This calculator is for illustrative purposes only and does not constitute financial, legal, or tax advice. Figures are estimates based on the assumptions entered and standard Dubai market fee conventions; actual costs, fees, payment plans, and returns will vary by transaction, developer, and contract. Please seek independent professional advice before making an investment decision.