Investment decisions built on net yield, not headline returns

Who this is for

Investors buying a residential or commercial building, building or reviewing a portfolio, or considering off-plan units. In each engagement we act for the buyer or the owner, never both sides of the same deal.

Yield analysis: gross versus net

Property is often marketed on gross yield: annual rent divided by price. What you keep is net yield, after the costs of owning and running the asset, measured against everything you paid to buy it.

checkRent: taken from registered Ejar contracts and actual collection history, not the seller's rent schedule.

checkRunning costs: vacancy, management, maintenance, service charges and insurance.

checkAcquisition costs: the price plus the 5% real estate transaction tax, transfer fees and any brokerage.

checkIllustrative example: a building priced at SAR 8,000,000 with SAR 640,000 rent shows 8% gross. After one month's vacancy, 5% management and SAR 40,000 of maintenance, measured against a cost of SAR 8,400,000 including tax, the net yield is about 6.1%.

Buildings and portfolio acquisitions

For portfolios, we review each asset the same way and show where the income is concentrated and which assets to keep, reprice or sell.

checkRent roll checked against Ejar contracts, with lease expiry dates and tenant payment history.

checkDeed, permits and land use reviewed, and any restrictions on the title identified before an offer.

checkField inspection of the structure, building services and common areas, with an estimate of major works likely to be due soon.

checkPrice tested against registered deals for comparable buildings in the district.

checkNegotiation, contract and electronic transfer through Najiz.

Off-plan due diligence

Off-plan is typically 12–18% cheaper than ready property, in exchange for delay risk. We only recommend projects whose documents cover that risk:

checkAn off-plan sales licence from Wafi for the project.

checkA project escrow account, with buyer payments going into it rather than directly to the developer.

checkA delivery guarantee, and a contract that states the handover date and what happens if it slips.

checkA payment schedule tied to construction progress, and approved plans and specifications that match the marketing.

checkThe developer's record on previous projects.

Exit planning and fees

Every recommendation includes an exit: the likely buyer, the price range from current deals, and the best timing, such as selling with long leases in place or with vacant possession. For assets you already own, we compare holding with selling on net figures.

The first consultation is free, with no commitment. The scope and fee for any further analysis are agreed in writing before work starts, and if we go on to broker the purchase or sale, the commission is set out in the brokerage agreement. Our analysis supports your decision; it is not a guarantee of future rent, value or returns.