Holding Period Return (HPR)
Holding period return is the total percentage return earned over the entire investment period, combining income received and capital appreciation.
| Calculation | Formula |
| HPR formula | ((Sale price + Total income minus Purchase price) / Purchase price) times 100 |
| Income component | Sum of all rental cash flows |
| Appreciation component | Sale price minus purchase price |
| Total return | Combined income and capital gains |
| Example: 5-Year Hold | Amount |
| Purchase price | AED 1,500,000 |
| Total rental income received | AED 300,000 |
| Sale price | AED 1,800,000 |
| Total return | AED 600,000 |
| HPR | 40% |
| Annualized return (IRR) | Approximately 7% |
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