ROI analysis of apartment in Burj Royale: DLD data and real deals

1. Area definition and data structure

Actual location: Burj Royale is situated in the Burj Khalifa area, within the DownTown Dubai master project. Transaction and rental data are recorded in DLD with an exact name match (Burj Royale), which allows for accurate comparative analysis.

Sales transactions: a total of 942 transactions have been recorded for Burj Royale over all years, with a significant share occurring in the last 3–4 years, indicating high market activity. The DLD structure shows no 0-bedroom (studio) types for Burj Royale — all transactions relate to 1-, 2- and 3-bedroom apartments. Similarly, on the rental side there are no validated contracts for studios; all contracts are for 1-, 2- and 3-bedroom units. This indicates that the building is focused on the family and mid-size apartment segment.

2. Price dynamics and transaction volume

For Burj Royale, the following transaction volumes are observed: the peak activity fell on 2022–2023 (269 and 256 deals respectively), and in 2024 there have already been 104 transactions in the first three quarters. Accordingly, the asset is highly liquid (dozens of deals per quarter), which is a positive signal for investors.

Average price per square metre dynamics:

In 2020, average levels were 18,900–20,000 AED/m².
In 2021, the market was volatile, with a short-term increase to 21,800 AED/m² followed by a correction to 18,500 AED/m².
2022 saw strong growth: from 23,900 AED/m² (Q1) to 27,200 AED/m² (Q4).
In 2023, the range remained at 23,700–30,400 AED/m², with the maximum at year-end.
Over the last 12 months (to date), the average transaction in the building closed at 35,127 AED/m² (65 deals), confirming the upward trend in values.

As a district benchmark (Burj Khalifa area): the average price per square metre over the last 12 months is 27,081 AED/m² (5,931 deals per year), meaning Burj Royale is selling at a noticeable premium to the area (around 30% difference). This is largely explained by the building’s recent completion, premium positioning and sustained demand for central Downtown.

3. Rental rates and dynamics according to DLD

The average rental rate per m² in Burj Royale over the last 12 months was 2,127 AED/m² per year (290 contracts), which provides a representative statistical base for yield analysis. For the Burj Khalifa area, the comparable figure is 1,596 AED/m² per year (8,659 contracts).

Current rents in the building exceed the district average by ~33%, reflecting demand for new apartments with advanced specifications and contemporary layouts.

4. ROI calculation and investment assessment

Annual yield (gross ROI):

For Burj Royale: 2,127 / 35,127 ≈ 6.1% gross.
For the Burj Khalifa area: 1,596 / 27,081 ≈ 5.9% gross.

Adjusting for transaction costs (7–8% on entry): net ROI for the building will be around 5.7% per annum (assuming 7% costs) and 5.65% for the area.

Assessment of the “fair price range” for a target yield of 7–8%:

For Burj Royale: at the current average rent of 2,127 AED/m², the fair price for an investor targeting 7–8% net yield is from 26,600 to 30,400 AED/m². The current market price (35,127 AED/m²) is significantly above this range, indicating a premium for newness, brand and location.
For the area: the fair range would be 19,950–22,800 AED/m² at current rents, versus an average market price of 27,081 AED/m².

5. Conclusions on liquidity and outlook

Burj Royale is one of the most liquid new buildings in the Burj Khalifa area, with a high frequency of sales and rental contracts. The price dynamics over the last 3–4 years show substantial growth, especially after 2021, driven by the broader market rally in premium Downtown locations. Rental rates consistently trade at a premium to the district, but current sales prices are 15–30% above investment-fair levels. To buy for rental income with a 7–8% ROI, a substantial discount to the current DLD market level is required (approximately 12–25% below recent transaction levels).

An investor considering entry into this building should expect a net yield closer to 5.5–6% per annum if purchasing at current market prices. Achieving a higher yield is only possible with a significant discount. At the same time, high liquidity and solid volumes in both sales and rentals support an exit without major difficulties over a medium-term horizon — especially if the focus is on a quality unit with an efficient layout.