ROI analysis of apartment in THE IVY: DLD data and real deals

1. Area definition and data structure

Actual location: according to DLD, THE IVY is located in Al Barsha South Fifth and is part of the Jumeirah Village Triangle master project. All calculations for the area and the master project are based strictly on this zoning, without substitution by any other areas.

Data availability and depth:

For THE IVY and 2-bedroom apartments (2BR), 20 transactions were recorded in DLD for the analysed period, which allows us to assess sales dynamics and price levels both for the building itself and for the wider area.
There is no rental market data at the level of the building or the master project. Even for 2-bedroom apartments in the area, no confirmed lease contracts were found, which is typical for new or small-scale developments. Nevertheless, across the entire residential stock of Al Barsha South Fifth, the volume of concluded rental contracts is very high (over 16,000 in recent years), providing a representative price benchmark for broad orientation.

2. Sales dynamics and pricing

Demand structure:

In 2022–2024, the volume of transactions for 2BR units in THE IVY has remained at a reasonably solid level — 2–4 deals per quarter, indicating stable liquidity in this segment.

Short-term dynamics of the average price per square metre in the building:

End of 2022: around 13,340 AED/m².
During 2023, the average level remained in the range of 13,300–14,340 AED/m².
In the first half of 2024, volatility was observed (a spike to 16,954 AED/m² followed by a decline), but the average level over the last 12 months based on transactions stands at 12,311 AED/m².
For 2BR in THE IVY, the fluctuation range over 2 years is roughly 11,300–16,950 AED/m², reflecting high market sensitivity to the individual characteristics of specific units and/or to sales phases around handover.

Area market (Al Barsha South Fifth):

From 2022 to 2024, the average price for apartments in the area increased from 10,600 AED/m² to 16,400 AED/m² (12‑month rolling average), reflecting the strong momentum of new projects in Jumeirah Village Triangle and high investment activity.
Over the last 12 months, the average price in the area is 16,358 AED/m².

Comparison of building and area prices:

THE IVY 2BR units are trading significantly below the current area average (a discount of about 25%), which may be related to the specific characteristics of the building (segment, quality, development phase) or to temporary market factors.

3. Rental market analysis

At the level of THE IVY and even the Jumeirah Village Triangle master project, DLD data shows no confirmed rental contracts for 2-bedroom apartments, so a direct comparison of rental rates and ROI for this segment is not possible.
In Al Barsha South Fifth, the average annual rental rate for residential apartments over the last 12 months is about 960 AED/m², with a clear upward trend in recent years (in 2020–21 – 400–450 AED/m², in 2023 – 710–990 AED/m²).
The rental market dynamics in the area indicate strong and growing demand, driven by active occupancy of new projects.

4. Yield (ROI) and investment assessment

Calculation only at the area level (no rental data for the building or the master project):

Gross yield at current market levels (indicative only!):
rent_psm / price_psm ≈ 960 / 16,358 ≈ 5.9% per annum for the area.
After accounting for commissions, DLD fees and additional costs (adjustment for 7–8% entry capex):
ROI_net for the area = 5.5–5.6%.

Fair price range per m² for an investor targeting a 7–8% yield (indicative calculation based on the area benchmark):

Fair price_psm_7_8 range for the area: 960/0.08 = 12,000 AED/m², 960/0.07 = 13,715 AED/m².
The current market price in the area (16,358 AED/m²) exceeds this range by 19–36%, indicating strong buyer activity and a market skewed towards capital appreciation rather than income strategies.
Transaction prices for 2BR in THE IVY (12,311 AED/m² over 12 months) fall within the “investment‑justified” range for a target yield of 7–8%. This points to an attractive price-to-potential-yield ratio compared with the rest of the area’s stock.

5. Conclusions and outlook

Liquidity is good: 2BR units in THE IVY are sold on a regular basis; across the area and all apartments there is a high volume of sales and rental transactions.
The area shows confident growth both in sales and rentals; 2BR in THE IVY are significantly cheaper (by about 25%) than the current area average, which is potentially attractive for investors.
The market rental yield in the area is already below 6% per annum after all costs, and the market is shifting towards capital growth.
THE IVY 2BR units are primarily of interest to investors looking to enter the market at a “wholesale” price and not chasing maximum current yield, or those wishing to lock in a price advantage versus the area’s average level.
To achieve a “net” yield above 7% per annum in the area, the entry price should be around 12–13.5 thousand AED/m²; transactions in THE IVY fall within this range.
Without actual confirmed rental contracts for THE IVY, even indicative ROI calculations can only be based on the area benchmark.