Expense Ratio

Expense ratio is operating expenses expressed as a percentage of effective gross income, measuring operational efficiency of property management.

CalculationFormula
Expense ratio(Operating expenses / EGI) times 100
Operating expensesAll costs except debt service and taxes
Lower ratioMore efficient operations, higher NOI margin
Benchmark comparisonEvaluate against similar properties
Dubai BenchmarksTypical Range
Apartments, investor-owned25% to 35%
Apartments, owner-occupied (minimal)15% to 20%
Villas30% to 40%
Serviced apartmentsServiced apartments 40% to 60%
Commercial offices35% to 50%

Related Terms

Operating ExpensesEffective Gross Income (EGI)Net Operating Income (NOI)Operating Expense Ratio (OER)Operating Expense Ratio (OER) Profitability

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