ROI analysis of apartment in Skyz by Danube: DLD data and real deals — 01.01.2026 — 01.01.2026

1. Definition of the area and data structure

Actual location: according to the DLD database, the SKYZ BY DANUBE building belongs to the Al Barshaa South Third district and the Arjan master project. In the analytics, the comparative benchmark is run against the Al Barshaa South Third area, which is confirmed by the data structure in DLD.

2. Market volume and liquidity

For SKYZ BY DANUBE, only for studios (0BR), 1,005 sales transactions have been registered in the database for the entire period. Activity by year peaked at the launch of sales (2022), then declined noticeably in 2023–2024, which is typical for new projects – the bulk of sales occurs at the launch stage. Over the last 12 months there have been transactions in the sample (for studios), which makes it possible to objectively calculate current indicators.

In terms of rentals, 11 studio lease contracts with relevant parameters (residential property, valid area and amount) have been recorded for the project, and there is up-to-date contract data for the last 12 months. This allows us to operate not only with baseline, but also with current market indicators when calculating yield and fair value.

3. Purchase price dynamics

Average sale price per square meter for studios in SKYZ BY DANUBE:

At the start of sales (2022) was in the range of 13,300–14,000 AED/m².
In 2023 values remained relatively stable: 13,700–14,000 AED/m².
During 2024 the price started to grow noticeably: by the end of the first half of the year the average level reached 14,950 AED/m², and over the last 12 months the average price stands at 16,315 AED/m².

For comparison, the average price of studios in Al Barshaa South Third over the last 12 months is 15,673 AED/m², and the long-term trend in the area shows a transition from ~8,340 AED/m² (2020) to 14,300–15,600 AED/m² by mid-2024. Thus, studios in SKYZ BY DANUBE over the last 12 months have been trading at a premium of roughly 4% to the area average and are fully in line with the level of new/modern stock in Al Barshaa South Third/Arjan.

The spread of actual prices for the latest transactions ranges from 17,557 to 23,600 AED/m², depending on the specific size and parameters of the studio.

4. Rental rate dynamics

According to DLD, studios in the building are currently renting at an average rate of 1,545 AED/m² per year (contracts over the last 12 months). This is significantly higher than the area average, where over the same period the average rental rate for studios is 1,087 AED/m², and this is the most notable premium (a difference of almost 40%). The main reason for this gap is the newer stock in the building and its higher segment (in the secondary stock of the area, rates in 2020–2022 were below 700–800 AED/m²; now the area average is being pulled up by new projects but still lags behind them in level).

5. Purchase vs rent comparison, yield (ROI)

Current values for the last 12 months:

Average studio price in SKYZ BY DANUBE – 16,315 AED/m².
Average annual rent – 1,545 AED/m².

Ratio (rough ROI) for an investor:

Gross yield in the building: 1,545 / 16,315 = 9.5% per annum.
Equivalent calculation for the area: 1,087 / 15,673 = 6.9% per annum.

Thus, investment yield for studios in the building is 2.6 p.p. higher than the area average. This is driven by very strong demand for a fresh product and, possibly, by a temporary overpricing of rents at the start of operation.

If we factor in standard transactional and related costs (around 7–8% one-off entry costs), the net yield for an investor (net ROI) in the building will be around 8.8–8.9% per annum, while for the area it will be about 6.3–6.4%.

6. “Fair price range” for a target net yield of 7–8%

For the building:

Lower bound (for 8% per annum): 1,545 / 0.08 = 19,312 AED/m².
Upper bound (for 7% per annum): 1,545 / 0.07 = 22,071 AED/m².

The current market price (16,315 AED/m²) is significantly BELOW this corridor, which theoretically provides a yield above the desired 7–8% per annum for a classic investor. Selling a studio above the current market level would be possible, but it is necessary to factor in future rental market stabilisation and the risk of supply saturation.

For the area:

Lower bound: 1,087 / 0.08 = 13,588 AED/m².
Upper bound: 1,087 / 0.07 = 15,528 AED/m².

The average price in the area (15,673 AED/m²) is already almost at the upper bound of the calculated “investment price corridor”, meaning that the yield in the area market is already close to the lower threshold of investment attractiveness (7%), and the potential for further price growth is limited in the absence of a significant increase in rents.

7. Conclusions on liquidity, outlook and investment rationale

SKYZ BY DANUBE remains a highly liquid asset in the studio segment of Al Barshaa South Third/Arjan, with a record number of transactions at launch and a notable benchmark in terms of rental levels – the yield premium to the area exceeds 2% even after adjusting for all costs. Price dynamics in the building maintain a steady upward trend, although across Al Barshaa South Third overall there is already a sense of saturation with new buildings, and the pace of growth in prices and rental rates is gradually stabilising.

Buying a studio in this building at a current price below 17,000 AED/m² targets investors seeking a yield of around 8.5–9% per annum based on current DLD rental levels. If current rents hold, the upside potential is capped around 19,000–22,000 AED/m² (for the classic “7–8% yield” target), which supports a “premium rental” strategy in a new building but limits the potential for rapid further price growth.

For investments in comparable studios across the area, market yields are significantly lower (6.3–7%), which reduces the short-term investment appeal of the older stock in Al Barshaa South Third, but may be of interest for long-term strategies.

8. Dynamics for charts and monitoring

Below is the aggregated quarterly dynamics of prices and rents in the building and in the area, suitable for subsequent visualisation in charts. This makes it possible to track the correlation between purchase prices and rents, as well as investment yields by quarter.