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How to earn returns from Saudi real estate funds on Stake

Date 20 May 2025

Aya Abi Issa
Written by Aya Abi Issa
How to earn returns from Saudi real estate funds on Stake
Table iconTable of contents

    Key takeaways

    1

    Income funds offer dividends plus capital appreciation.

    2

    Development funds focus solely on long-term capital gains.

    3

    Projections are estimates, actual returns depend on market conditions and fund execution.

    Whether you're investing for monthly income or long-term growth, understanding how returns work is key to choosing the right real estate fund on Stake. Here’s a breakdown of how different fund types pay you back:

    1. Income-Generating Funds

    These funds focus on rental income from operational properties.
    Here’s how returns work:

    • Regular dividends are paid monthly or quarterly (varies by fund).
    • At the end of the fund’s term, properties are sold and any capital appreciation is distributed to investors.
    • You’ll benefit from both steady income and potential long-term gains.

    2. Development Funds

    These funds aim to generate profit through capital appreciation only.
    What to expect:

    • No dividends or monthly income during the fund’s active period.
    • Returns are realized when the developed properties are sold at the end of the cycle.
    • Ideal for investors focused on growth over time, not immediate payouts.

    3. Projected vs. Actual Returns

    Each fund provides projected return estimates based on:

    • Market analysis
    • Strategy type (income vs. development)
    • Real estate performance expectations

    ⚠️ Important: Projections are not guaranteed. Actual returns may vary based on:

    • Market conditions
    • Occupancy and rental trends
    • Final sale prices of the properties

    Pro Tip: Always read the fund’s terms and expected return breakdown before investing. You’ll find it in the “Key Information” section of each fund listing.