How to Calculate the Value of an Off-Plan Property at Completion

A successful off-plan investment in Dubai begins with a good estimate of its future value. This approach allows you, as a buyer or investor, to better assess whether the purchase price is correct, what your expected profit is, and how attractive the project truly is. Below, you will find a step-by-step guide on how to make this calculation.

Step 1: Note the Core Details of the Off-Plan Project

Write down the following details:

• Total purchase price of the property
• Plot size in m²
• Built-up area in m² (BUA)

Then calculate the price per m² based on both areas:

• Price per m² BUA = Total price / Built-up area
• Price per m² plot = Total price / Plot size

Step 2: Find Comparable Projects

Identify six comparable properties within a 5-10 minute drive of the project. Only select recent sales that are comparable or slightly less luxurious than the new project.

For each comparable property, calculate:

• Price per m² BUA = Sale price / Built-up area
• Price per m² plot = Sale price / Plot size

Then take the average of the six comparable prices per m².

Step 3: Project the Sale Value at Completion

Use both averages from the comparable properties:

• Calculate value based on plot = m² plot x comparable price per m²
• Calculate value based on BUA = m² BUA x comparable price per m²

Add these two amounts together and divide by two for a realistic estimated sale price at completion.

Step 4: Determine Your Investment and Profit

Calculate how much capital you are investing. For a typical payment plan of 65%, take:

• Capital invested = purchase price x 0.65

Calculate your expected net profit:

• Net profit = Expected sale price – Purchase price

Step 5: Calculate the Return on Investment (ROI)

• ROI (%) = (Net profit ÷ Capital invested) × 100

This approach is also used by professional real estate agents and mortgage providers in Dubai. They do not only look at the number of bedrooms, but particularly at the price per m², as this determines market value and financeability.

Using this method prevents you from overpaying for an apartment or villa, and gives you a clear understanding of whether your project has long-term potential.