Key Metrics
Financial SummaryVisual Analysis
Three pricing scenarios showing project feasibility under different market conditions
Three pricing scenarios showing project feasibility under different market conditions
| Total Development Cost | AED 10.5K |
| Land as % of GDV | 0% |
| Project Location | Dubai, UAE |
| Plot Area | 0 sq.ft. |
| GFA | 0 sq.ft. |
| Land Price | AED 0 |
| DLD Fee (% of Land) | 4% |
| NOC Fee | AED 5,250 |
| Brokerage Fee | 2% |
| Trustee Fee | AED 5,250 |
| Residential Area | 0 sq.ft. |
| Residential Price | AED 0 |
| Retail Area | 0 sq.ft. |
| Retail Price | AED 0 |
| Office Area | 0 sq.ft. |
| Office Price | AED 0 |
| Marketing | 1% |
| Sales & Brokerage | 8% |
| Admin | 1% |
| Branding Fees | 0% |
| Construction BUA/GFA | 1.8x |
| BUA Area | 0 sq.ft. |
| Construction Cost | AED 375 / sq.ft. |
| Concept Design | 0.25% |
| Architect & Interior | 3% |
| Approvals & Authority | 5% |
| Consultant Fees | 4% |
| Misc & Contingency | 2% |
Three pricing scenarios showing project feasibility under different market conditions. Conservative assumes 10% lower exit pricing; Optimistic assumes 10% higher exit pricing.
| Metric | Conservative | Expected | Optimistic |
|---|---|---|---|
| Exit Price / sq.ft. | AED 0 | AED 0 | AED 0 |
| GDV / Gross Sales | AED 0 | AED 0 | AED 0 |
| Net Profit | AED 0 | AED 0 | AED 0 |
| Project Margin | 0.0% | 0.0% | 0.0% |
| ROI | 0.0% | 0.0% | 0.0% |
| ROE | 0.0% | 0.0% | 0.0% |
Indicative Dubai market ranges for land, construction, soft costs and healthy returns — benchmark your own feasibility inputs against these figures.
| Benchmark | Range |
|---|---|
| Land cost as % of GDV — emerging zones | 15–25% |
| Land cost as % of GDV — master communities | 25–40% |
| Construction cost — standard spec | AED 350–450/sq.ft. |
| Construction cost — mid-range spec | AED 450–600/sq.ft. |
| Construction cost — luxury spec | AED 600–900+/sq.ft. |
| Soft costs (% of construction cost) | 12–20% |
| DLD transfer fee | 4% of land price |
| Total acquisition costs above land price | 6–7% |
| Healthy ROI range — residential | 20–40% |
| Healthy project margin | 20–35% |
Everything you need to know about using the ROI Calculator for your Dubai development feasibility analysis.
A land ROI calculator is a development feasibility tool that models the financial return on a land acquisition before capital is committed. You input parameters — plot size, GFA, land cost, construction cost per sq.ft., and target exit price — and the calculator outputs key return metrics including Gross Development Value (GDV), net profit, return on investment (ROI), return on equity (ROE), and project margin. The Lands & Co. calculator is purpose-built for Dubai's land market, applying local construction cost benchmarks and DLD fee structures to produce market-calibrated projections.
These three metrics measure the same profit from three different perspectives. ROI (Return on Investment) divides net profit by total project cost — it tells you how efficiently the entire capital deployed generated a return. ROE (Return on Equity) divides net profit by the equity capital actually invested (excluding debt) — it tells you the return on your own money, which is always higher than ROI when leverage is used. Project Margin divides net profit by total gross sales revenue — it tells you what percentage of every dirham of revenue becomes profit. All three are required for a complete picture of development feasibility.
GDV stands for Gross Development Value — the total market value of a completed development, calculated by multiplying the total sellable built area (GFA) by the projected exit price per sq.ft. It is the foundation of all land development feasibility analysis in Dubai. Every other metric — profit margin, land cost ratio, ROI — is derived from GDV. A plot that appears cheap on a price-per-sqft basis can be economically unfeasible if its permitted GFA produces a GDV that doesn't cover construction and acquisition costs. GDV must be modelled before any land acquisition decision is made.
A healthy return on investment for residential development in Dubai typically ranges from 20% to 40% over an 18 to 30-month development cycle. This equates to an annualised IRR of approximately 12–25% depending on the financing structure and exit strategy. Commercial and hospitality developments vary based on whether the asset is sold on completion or held for income yield. Projects below 15% ROI in Dubai's current construction cost environment warrant close scrutiny of the land acquisition cost as a percentage of GDV. Projects above 40% ROI should be stress-tested against conservative pricing scenarios to verify the margin is real.
Land cost as a percentage of GDV is a critical feasibility metric that measures how much of your total development value is consumed by the land acquisition alone. In Dubai, the healthy benchmark for emerging corridors is 15–25% of GDV; for established master communities like Dubai Hills Estate it can reach 30–40%. When land cost exceeds 40% of GDV, the development margin becomes highly vulnerable to construction cost overruns and exit pricing variance. The Lands & Co. calculator outputs this figure automatically for every set of inputs.
The break-even price per sq.ft. is the minimum exit price at which a development recovers 100% of its total cost — land acquisition, construction, soft costs, fees, and financing — with zero profit. It is calculated by dividing total project cost by total sellable GFA. The gap between your break-even price and your projected exit price is your pricing downside buffer — the amount by which market prices can fall before the project stops being profitable. A larger buffer means a more resilient development feasibility case.
The Dubai Land Department (DLD) charges a transfer fee of 4% of the agreed purchase price on all property transactions, including land. This fee is paid at the point of title transfer and is in addition to the agreed land price. Combined with agent brokerage fees (typically 2%), NOC fees from the master developer, and trustee registration fees, total acquisition costs typically add 6–7% above the negotiated land price. The Lands & Co. ROI calculator includes all these acquisition costs in the total project cost calculation.
Yes. The Lands & Co. ROI Calculator is designed for both UAE-based and international developers and investors evaluating Dubai land acquisitions. Foreign nationals can purchase 100% freehold land in Dubai's designated zones, and the calculator applies the same DLD fee structure, construction cost benchmarks, and GDV methodology regardless of the investor's nationality. The tool covers all asset classes — residential apartments, villas, commercial offices, retail, hotel, and healthcare — and all major Dubai zones.
Construction costs in Dubai vary by asset specification and quality level. As a general benchmark: standard residential specification costs approximately AED 350–450 per sq.ft. of GFA; mid-range specification AED 450–600 per sq.ft.; luxury specification AED 600–900+ per sq.ft.; and ultra-luxury or complex commercial developments AED 900–1,500+ per sq.ft. These figures cover civil and structural works but typically exclude fit-out, FF&E (furniture, fixtures and equipment), and external infrastructure. For hotel and healthcare developments, total construction costs are typically 20–40% higher than equivalent residential schemes of similar gross area.
ROE (Return on Equity) is calculated by dividing net development profit by the total equity capital invested in the project. Equity capital is the total project cost minus any debt or construction finance drawn. For example, if a project costs AED 100 million and is financed with AED 30 million of equity and AED 70 million of bank finance, an AED 20 million profit produces a 66.7% ROE versus a 20% ROI. This distinction matters significantly when evaluating leveraged development structures — ROE is always the metric most relevant to the equity investor's actual return.
Plot area is the total land area you are purchasing, measured in sq.ft. or sq.m. GFA (Gross Floor Area) is the total built-up area you are permitted to construct across all floors of the development. GFA is determined by the plot's zoning classification and is calculated by applying the permitted FAR (Floor Area Ratio) or plot ratio to the plot area. A G+9 building on a 20,000 sq.ft. plot with a GFA ratio of 5.0 permits 100,000 sq.ft. of built space. GFA is the foundation of all revenue modelling — it is the number you multiply by your exit price to calculate GDV.
Yes, and most first-time developers systematically underestimate them. Soft costs in a Dubai development typically include: architectural and interior design fees (3–5% of construction cost), structural and MEP engineering fees (2–4%), authority approval and DM submission fees (3–6%), project management fees (2–4%), and miscellaneous contingency (2–5%). In total, soft costs typically add 12–20% on top of hard construction costs. Excluding or underweighting them is one of the most common causes of development margin erosion in Dubai's market.