ROI analysis of apartment in Paradise View 1: DLD data and real deals

1. Definition of the area and data structure

Actual location: Paradise View 1 is located in Wadi Al Safa 3, within the Majan master project. All market calculations and comparative analysis are carried out relative to this area.

The DLD database records 284 transactions for this building. This allows for confident analytics not only for the building itself, but also for the wider area. For further analysis of studios, filters were applied to 0-bedroom units (“studio/студия”) according to the commonly accepted classification.

2. Transaction dynamics and purchase prices

– Over the past two years, Paradise View 1 has recorded 217 transactions in 2024 and 67 in 2025 (all transactions are counted, including off-plan and assignment deals — some 2025 transactions may relate to early assignments).
– For studios in Paradise View 1, the average price per m² over the last 12 months was about AED 12,584.
– By comparison, in Wadi Al Safa 3 the average price for studios over 12 months is significantly higher — around AED 18,337/m².

Quarterly dynamics of the average price per m² in Paradise View 1 (studios):
– In the second half of 2024: AED 7,800–13,650/m² (the volatility is linked to the overlap of off-plan and handover/occupation periods).
– From Q1 2025: a range of AED 11,900–13,000/m². The current level is slightly below the area average.

Wadi Al Safa 3 shows a substantial increase in studio prices: in the first half of 2023 values were around AED 9,400–10,000/m², in Q2 2024 already AED 16,000–17,000/m², and by early 2026 the average price reaches AED 19,000/m².

3. Rental market analysis

– For Paradise View 1, 180 valid long-term studio rental contracts have been registered over the past 3 years, which allows for a reliable assessment of the market level and rental rate dynamics in the building.
– The average annual rental rate for studios in Paradise View 1 over the last 12 months is about AED 836/m².
– For comparison, in Wadi Al Safa 3 the average annual rate for studios is AED 908/m².

Quarterly dynamics of the average rent per m² in Paradise View 1:
– In 2023 — AED 617–731/m²,
– From Q1 2024 — a range of AED 707–817/m²,
– In 2025 — around AED 780–1,010/m² (some values may be higher due to the specifics of new contracts and increased demand after handover).

The area as a whole also shows growth: at the beginning of 2023 the range was AED 630–692/m², in 2024 — AED 727–886/m², and by early 2026 the average rent exceeds AED 900/m².

4. Comparative assessment, yields and fair price range

Paradise View 1 is priced below the Wadi Al Safa 3 area averages both for sales (AED 12,584 vs AED 18,337/m²) and for rentals (AED 836 vs AED 908/m²). This discount is explained by the building’s specific location as well as the nature of the stock (a large number of studios and high internal competition within Majan).

Based on current average rates:
– The gross annual yield (gross ROI) for an investor purchasing a studio in Paradise View 1 is around 6.6% per year (836/12,584), while for the wider area it is lower: roughly 5.0% (908/18,337).
– To calculate “net” yield after standard transaction costs (7–8% on entry), the figure is adjusted: indicative net ROI for Paradise View 1 is in the range of 6.1–6.2% per year, and for the area — 4.6–4.7%.

With a target ROI of 7–8% and based on the current rental level, the “investment fair price” for a studio in Paradise View 1 is AED 10,455–11,950/m². The current average transaction price in the building is slightly above this range, meaning that an investor targeting a 7–8% yield may look for a modest discount from current market prices. For the area, the fair level is even lower: AED 11,350–12,970/m², while the actual average price in Wadi Al Safa 3 significantly exceeds levels that would be considered reasonable for income-focused investors.

5. Liquidity and outlook

– The volume of transactions and rental contracts indicates high liquidity for studios in Paradise View 1 and in the Majan (Wadi Al Safa 3) area.
– Over the past 2 years, the building has seen stable demand for purchase and sale, which is favourable for sellers.
– Rental rates in the building and the area are rising, but sales price growth in Wadi Al Safa 3 is outpacing rental growth, which reduces potential investor yields in the area as a whole.
– Paradise View 1 remains one of the most affordable entry-price options in this fast-growing district, and can therefore be attractive both for continued rental (with a horizon of 3+ years) and for speculative resale over the next 1–2 years, assuming the trend of rising demand for affordable housing continues.