1. Definition of the area and data structure
Actual location: According to DLD, the Harrington House building belongs to the Al Barsha South Fourth area, master project Jumeirah Village Circle. For the studio analysis, filters were applied by building name and by unit type (studio/0BR).
2. Deal statistics and structure
A total of 21 studio sales in Harrington House have been recorded for the entire period, with the latest transactions covering completed periods and the most recent 12 months. The share of studios in the building’s unit mix is significant — such apartments are in demand among investors.
3. Price dynamics and levels: building vs area
Price per square metre dynamics (AED/m², averaged by quarter):
– Harrington House, studios: from 13,000–14,000 AED/m² in 2022 to a growth level of 19,300 AED/m² in the last 12 months.
– Al Barsha South Fourth (residential, apartments): steady positive dynamics from 8,500–9,000 to 15,187 AED/m² in the last 12 months.
Average achieved sale price per m² over the last 12 months:
– Harrington House studios: 19,331 AED/m²
– Entire area: 15,187 AED/m²
This indicates a premium to the area for a new, modern building with high-quality finishes.
4. Rental levels: building vs area
Analysis of Ejari rental contracts shows 24 actual studio lease agreements recorded for Harrington House. Average rental rate (AED/m² per year) over the last 12 months:
– Harrington House (studios): 1,549 AED/m²/year
– Area (all residential apartments): 1,040 AED/m²/year
There is a substantial rental premium for Harrington House compared with typical stock in the area, which is logical for a modern new project in Jumeirah Village Circle.
5. Rental rate dynamics
The building shows growth in average rental rates for studios from 1,200–1,400 AED/m²/year (2022–2023) to 1,400–1,500 AED/m² (2023–2024). In the area overall, the dynamics are smoother: from 620–820 AED/m²/year (2022–2023) to 1,040 AED/m²/year in the current period.
6. Investment return (ROI) calculation
Calculation based on averaged DLD data for the last 12 months, only for Harrington House (studios) and the area:
– Gross yield for studios in Harrington House: 1,549 / 19,331 = 8.01% per annum
– For the area: 1,040 / 15,187 = 6.85% per annum
Actual yield for the building is above the area benchmark thanks to the high rental rate and premium sale price.
Adjustment for transaction costs (7–8% of entry price):
– Net ROI for Harrington House ≈ 7.42–7.49% per annum (calculated by dividing gross by ~1.07–1.08)
– Net ROI for the area ≈ 6.33–6.41%
7. “Investment fair” transaction price range
For an investor targeting a 7–8% annual yield, the fair purchase price range per m² in the building is:
– Minimum price for 8%: 1,549 / 0.08 ≈ 19,360 AED/m²
– Maximum price for 7%: 1,549 / 0.07 ≈ 22,128 AED/m²
The actual average transaction (19,331 AED/m²) corresponds to the lower bound of this range, meaning the asset can already deliver a 7–8% target yield at the current market price. For the area, the fair range is 13,000–14,900 AED/m², while the average market price is slightly higher, which makes the area less attractive for a purely investment-driven purchase outside new buildings.
8. Liquidity and outlook
The building shows a stable level of transactions and rental contracts for studios, confirming strong demand from both investors and tenants. In recent years, both the building and the area have demonstrated strong price growth in sales and rentals. The Harrington House premium to the area across all key metrics highlights the attractiveness of the modern segment in Jumeirah Village Circle for private investors.
Conclusion: Harrington House is a liquid building with consistently strong demand for studio rentals, a high level of transactions and attractive yields. The investment price is in line with the current market, and the premium to the area is justified by the project quality and demand. The 3–5 year outlook is positive, provided the current market dynamics and quality of building management are maintained.
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