Annual Appreciation

Annual appreciation is the year-over-year percentage increase in property value, measuring capital growth independent of rental income.

CalculationFormula
Simple annual(Year 2 value minus Year 1 value) / Year 1 value
Compound annual (CAGR)((Final value / Initial value)^(1/years)) minus 1
Inflation-adjusted Nominal appreciation minus inflation rate
Real appreciationAfter adjusting for currency changes
Dubai Historical Context
Dubai Historical ContextPeriod
Peak growth 2012 to 201415% to 20% annual
Correction 2014 to 2020Negative 2% to 5% annual average
Recent recovery 2020 to 20248% to 12% annual in premium areas
Volatility expectationPlus or minus 10% year-to-year swings possible


Related Terms

Capital AppreciationFair Market ValueFair Market Value (FMV)Total ReturnPrice IndexMarket Cycle

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