Summary
How you exit determines the fees. If you sell your shares to another investor during an exit window, your proceeds equal your share value minus a a 7% performance fee on Value Appreciation — no exit fee applies. If the property itself is sold, your proceeds equal your share of the sale value minus the 3% exit fee and a 7% performance fee on profit. We show you the full breakdown before you confirm anything. Note that investments into Real Estate carry risks, and returns are not guaranteed.
The Formula
Exit Window (selling your shares to another investor)
Your proceeds = Share value - Performance fee
Share value at exit
Minus Performance Fee fee (Sales Price, less sales fees and transaction costs, less the total Funded Amount)
= Your net proceeds
No Exit fee applies to exit window sales.
Property Sale
Your proceeds = Your share of (Sale value - Exit fee - Performance fee)
Your share of the property sale value
Minus exit fee (3% of the greater of Sales Price or Funded Amount less Arvo Fees)
Minus performance fee (7% of profit — the Sales Price, less sales fees and transaction costs including the 3% Exit Fee, less the total Funded Amount including all costs and fees funded at acquisition)
= Your net proceeds
Understanding Each Component
Share Value
Your share value = Current property valuation × Your ownership %
Example | Amount |
Latest Property valuation | AED 1,000,000 |
Your ownership | 1% |
Your share value | AED 10,000 |
Exit Fee: 3%
Charged on the greater of Sales Price or Funded Amount less Arvo Fees. It applies only to property sales.
Example | Calculation |
Sale value (greater than Funded Amount less Arvo Fees) | AED 10,000 |
Exit fee (3%) | AED 300 |
This fee covers transaction processing and administration.
Performance Fee: 7% of Profit
Charged on both Exit Windows and Full Property Sales . For Full Property Sales Profit is calculated as the Sales Price, less sales fees and transaction costs (including the 3% Exit Fee), less the total Funded Amount (including all costs and fees funded at acquisition). For Exit Windows, 3% Exit fee is not deducted as its not applicable.
Example for a Full Property Sale | Calculation |
Total Funded Amount, incl. all costs and fees funded at acquisition (your share) | AED 8,000 |
Sales Price less sales fees and transaction costs, before Exit Fee (your share) | AED 10,000 |
Exit fee (3% of AED 10,000) | -AED 300 |
Profit (10,000 - 300 - 8,000) | AED 1,700 |
Performance fee (7% of AED 1,700) | AED 119 |
Example for an Exit Window | Calculation |
Total Funded Amount, incl. all costs and fees funded at acquisition (your share) | AED 8,000 |
Sales Price less sales fees and transaction costs, before Exit Fee (your share) | AED 10,000 |
|
|
Profit (10,000 - 8,000) | AED 2,000 |
Performance fee (7% of AED 2,000) | AED 140 |
If you don't make money, we don't take a performance fee.
Worked Examples: Exit Window Sale
No Exit fee applies in any of these scenarios — it is only charged when the property itself is sold.
Scenario: Profitable Exit
Item | Amount |
Total Funded Amount (your share) | AED 1,000 |
Share value at exit | AED 1,300 |
Profit | AED 300 |
Performance fee (7% of AED 300) | -AED 21 |
Your proceeds | AED 1,279 |
Your return: +AED 279 (27.9% gain after fees)
Scenario: Break-Even Exit
Item | Amount |
Total Funded Amount (your share) | AED 1,000 |
Share value at exit | AED 1,000 |
Profit | AED 0 |
Performance fee (7% of AED 0) | -AED 0 |
Your proceeds | AED 1000 |
Scenario: Loss Exit
Item | Amount |
Total Funded Amount (your share) | AED 1,000 |
Share value at exit | AED 900 |
Profit | -AED 100 (loss) |
Performance fee (7% of AED 0) | -AED 0 |
Your proceeds | AED 900 |
Property values can go down. You do not pay a Performance Fee when the investment loses value.
Worked Example: Property Sale
Item | Amount |
Total Funded Amount (your share) | AED 1,000 |
Your share of sale value | AED 1,300 |
Exit fee (3% of AED 1,300 — the sale value, being the greater) | -AED 39 |
Profit (1,300 - 39 - 1,000) | AED 261 |
Performance fee (7% of AED 261 profit, rounded) | -AED 18 |
Your proceeds | AED 1,243 |
Your return: +AED 243 (24.3% gain after fees)
Don't Forget Rental Income
Total return = Exit proceeds + All rental income received
Example
Item | Amount |
Original investment | AED 1,000 |
Exit proceeds | AED 1,250 |
Total rental income (3 years) | AED 180 |
Total return | AED 1,430 |
Total gain | AED 430 (43%) |
Common Questions
When are fees deducted?
At the time of exit, automatically calculated and deducted from your proceeds.
Can fees change?
Current fee structure is fixed. Any future changes would be communicated in advance and wouldn't apply to existing investments.
What if there's a dispute about valuation?
Valuations are conducted by independent RERA-certified professionals. Contact support if you have concerns.
How accurate are the estimates?
Exit window estimates are based on current valuation. Property sale proceeds depend on actual sale price.
Do I see the calculation breakdown?
Yes. Your exit confirmation shows all fees and calculations.
Summary
Fee | When | Amount |
Exit fee | Property sales only | 3% of the greater of Sales Price or Funded Amount less Arvo Fees |
Performance fee | Property sales and Exit Windows | 7% of profit (Sales Price less sales fees and transaction costs including the 3% Exit Fee, less total Funded Amount) |
All investments carry risk. Real estate price can increase and decrease in value. Past performance is not a guarantee of future returns. Arvo is regulated by the DFSA. All fees are disclosed before you confirm any exit transaction.