ROI analysis of apartment in Berkeley Place: DLD data and real deals

1. Definition of the area and data structure

Actual location: according to DLD, the Berkeley Place building is located in the Al Merkadh area, master project SOBHA HARTLAND. All SQL queries were run for this building, and for market comparisons — for the Al Merkadh area (and only for studio apartments, as specified in the query filter).

Data structure: 218 transactions for the building are recorded in DLD, of which 20 are for studios (0BR). In the rental sample for Berkeley Place (studios), 71 contracts are recorded, of which 7 relate to residential studios with a valid annual value and area.

2. Liquidity comparison: sales and rentals

Sales market liquidity: Berkeley Place shows moderate liquidity for studios — over the past 12 months, 8 studio purchase transactions have been completed.

Rental liquidity: over the same period, 7 rental contracts for studios were signed directly in this building, and in the Al Merkadh area — more than 4,300 annual studio rental contracts.

Conclusion: the asset is attractive in terms of rental demand, and the studio market in Al Merkadh is very active and deep.

3. Sales price dynamics in the building and the area (last 3–5 years)

Berkeley Place:
– The average price per m² for studios in the building has been steadily growing since the first transaction in 2022: from ~20,000 AED/m² to 21,000–23,000 AED/m² during 2022–2023.
– Over the last 12 months, the average achieved sales price for studios in the building is 18,643 AED/m² (8 transactions). A temporary decline is visible relative to late 2023 levels — most likely driven by the specific mix of transactions.

Al Merkadh (studios):
– From 2020 the studio market in the area was in the 15,000–18,500 AED/m² range until mid‑2022, after which a sustained growth phase began:
– Quarterly averages from late 2023 stand at 17,000–21,000 AED/m², with a peak of 21,178 AED/m² (2024, Q4).
– Over the last 12 months, the average studio price in the area is 20,627 AED/m² (1,521 transactions = very high statistical reliability).

Thus, over the last 12 months Berkeley Place has been selling at roughly a 10% discount to the wider studio market in the area, which may be explained by handover stages, specific promotions/deals, or the initial lease‑up phase in a new building.

4. Rental rate dynamics in the building and the area

Berkeley Place (studios):
– Average annual rental rate for studios over 12 months: 1,619 AED/m² (7 contracts).
– By quarter: at the beginning of 2025 the rate is slightly lower (1,509 AED/m²), then 1,619 AED/m², and the latest recorded contract is at 1,731 AED/m² (the number of new contracts is increasing as the building fills up).

Al Merkadh (studios):
– The market has been growing steadily since 2020: from 800–900 AED/m² to 1,350 AED/m² at the beginning of 2024.
– In 2024, average quarterly values are 1,357–1,695 AED/m²; in 2025, rates for new studios reach 1,892 AED/m², with a 12‑month average of 1,705 AED/m² (4,300+ contracts).

Overall: in terms of rental rates, Berkeley Place slightly lags the area benchmark, but sits in the upper part of the range for studios, taking into account the building’s recent completion.

5. Current price levels and investment return (ROI) calculation

Purchase price per m² (12 months):
– Berkeley Place (studios): 18,643 AED/m²
– Al Merkadh area: 20,627 AED/m²

Average rent per m² (12 months):
– Berkeley Place (studios): 1,619 AED/m²
– Al Merkadh area: 1,705 AED/m²

Gross yield calculation:
– For the building: ROI_brutto ≈ 8.7%
– For the area: ROI_brutto ≈ 8.3%

Adjustment to net yield (including entry costs):
– With initial costs of ~7%, the effective net yield will be: ROI_net ≈ 8.7% / 1.07 ≈ 8.1% (for the building); for the area ≈ 7.8%

Fair price range for an investor (7–8% annual yield):
– For the building: 1,619 / 0.08 = 20,237 AED/m² (for 7% — 23,132 AED/m²)
– For the area: 1,705 / 0.08 = 21,313 AED/m² (for 7% — 24,357 AED/m²)

Thus, to achieve 7–8% per annum (gross), the current average achieved sales price in the building is close to, or slightly below, the investment range. There is upside potential for capital values as rental income grows in line with rising rental demand.

6. Investment outlook and conclusions for an investor

– Demand for studio housing and rentals in Al Merkadh is high and continues to grow, as evidenced by thousands of sales and lease contracts every year.
– The growth rates of both sales and rental prices in the area and in the building have accelerated noticeably in 2023–2025.
– The current average ROI allows an investor to target returns above the broader market (7–8% gross), especially compared with similar studios in other areas of Dubai.
– Berkeley Place is currently priced slightly below the area average, but as occupancy increases and building operations stabilise, rental rates may reach and even exceed the wider market level.
– For a long‑term investor (3–5 year horizon), the asset is attractive due to high liquidity, strong tenant demand, and a sustained upward price trend in the area.