ROI analysis of apartment in Chaimaa Avenue 2: DLD data and real deals


1. Area definition and data structure

Actual location: According to the DLD database, the Chaimaa Avenue 2 building is located in the Al Barsha South Fourth area, within the Jumeirah Village Circle master project. All subsequent comparisons by area and master project are based exclusively on these parameters.

Data structure and volume: The DLD records 161 sale transactions for Chaimaa Avenue 2 (35 of them are studios), as well as 179 rental contracts. In Al Barsha South Fourth, the number of apartment transactions exceeds 19,000 over just the last 12 months; both liquidity and demand are confirmed by a large sample for both sales and rentals.

ROI analysis of apartment in Chaimaa Avenue 2: DLD data and real deals Continental Club Property LLC


2. Sales dynamics and analysis

Transactions for studios (equivalent to “0BR”) in Chaimaa Avenue 2 have been recorded over several years. The quarterly dynamics of the average price per m² since Q4 2021 show substantial growth:

– At the end of 2021 and the beginning of 2022, the price per m² was in the range of 9,300–9,700 AED.
– In 2023 there was a significant jump: in Q3 and Q4 prices reached 12,400–12,800 AED/m².
– In 2024 (year-to-date) a peak of 15,400 AED/m² has been recorded; however, the number of studio transactions is limited.

Over the last 12 months, the average sale price per m² for all Chaimaa Avenue 2 transactions (all apartment types) amounted to 11,600 AED/m² (there were no new studio sales in this period). In neighboring projects and in Al Barsha South Fourth as a whole, the average price per m² over the last 12 months is 15,075 AED/m², meaning that sales in Chaimaa Avenue 2 have been closing at an average discount of about 23% to the area.

The area’s quarterly dynamics show steady growth: since early 2020, the average price per m² has almost doubled — from 8,000 to over 15,000 AED/m² by mid‑2024.

ROI analysis of apartment in Chaimaa Avenue 2: DLD data and real deals Continental Club Property LLC


3. Rental dynamics and structure

For Chaimaa Avenue 2, rental contracts for studios (0BR equivalent) — there are 42 such contracts in the DLD sample, 11 of which were signed in the last 12 months. The average annual rental rate under these contracts was 1,145 AED/m². For comparable units in the area, the average rental rate per m² over the last 12 months is 1,040 AED/m². Conclusion: rental demand for studios in Chaimaa Avenue 2 is above the area average, as is the rental rate.

The building’s quarterly dynamics indicate stable rental levels: within 1,020–1,230 AED/m², which confirms solid rental demand. Across the area, the spread between quarterly values is small, which is typical for mature rental segments.


4. Comparative analysis of returns (ROI) and the range of investment‑fair prices

– For Chaimaa Avenue 2, at the level of the entire building (all apartment types): the average sale price per m² over the last 12 months is 11,608 AED, and the average studio rent is 1,145 AED/m² per year.
– For Al Barsha South Fourth: price — 15,075 AED/m², rent — 1,040 AED/m².

Return calculations:
– Gross yield (ROI Brutto) in Chaimaa Avenue 2 is about 9.86% per annum (1,145 / 11,608), which is significantly higher than the area average (6.9% — 1,040 / 15,075).
– For an accurate investor assessment, associated transaction costs and vacancy periods must be considered. Net yield (ROI Net) for the building is approximately 9.2% per annum (gross ROI divided by 1.07 — accounting for all entry costs), and around 6.5% for the area.

Assessment of fair value for an investor targeting a 7–8% annual yield:
– For Chaimaa Avenue 2: a rental rate of 1,145 AED/m² gives an investment‑fair price range of 14,300–16,360 AED/m². The current average price (11,600 AED/m²) is 19–30% below the upper boundary of this range.
– For Al Barsha South Fourth: the investor range is 13,000–14,850 AED/m², with the current average price at 15,075 AED/m². The actual market is close to the “upper” valuation; additional investments deliver a yield below 7%.


5. General conclusions and outlook

Chaimaa Avenue 2 demonstrates good liquidity and stable rental demand for studios. Purchase prices here are consistently below the area average, while rental rates are higher, and the return on invested capital is among the highest in the area. Over the past 2 years both prices and rents have been growing at a faster pace than the average for the city segment.

For an investor, acquiring a studio or a comparable unit in Chaimaa Avenue 2 is currently more attractive than buying in the area as a whole, both in terms of current income and potential capital appreciation. The market price range is significantly below the threshold at which yields would fall to the typical 7–8% for the area. The large volume of sale and rental transactions confirms high liquidity and real demand from both end users and tenants.

Please note: all calculations provided are not a formal valuation, but an indicative market snapshot based on actual DLD contracts over the last 12 months and quarterly dynamics over the past 3–4 years.

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