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1. Definition of the area and data structure
Actual location: Boutique 23 is located in Al Jadaf, within the Jaddaf Waterfront master project. The building name fully matches the DLD records, and the area is unambiguously identified based on actual transactions.
Data volume and period: For sales of 2-bedroom apartments, there are 89 recorded deals starting from January 2024, which allows us to compile a report both for the building and for the wider area. For rentals in the building itself and in the Jaddaf Waterfront master project, there are no records of contracted 2-bedroom apartments; therefore, the average rental rate is analysed at the district level (Al Jadaf), where the sample size is significantly larger — over 39,000 contracts in recent years.
2. Sales dynamics and structure in the building and the area
Sales in Boutique 23:
From Q1 2024 to date, activity has remained consistently strong: up to 31 transactions per quarter. The average price per sq m for 2-bedroom apartments (data averaged, outliers in size and price excluded):
– Q1 2024: 15,100 AED/sq m
– Q2 2024: 16,200 AED/sq m
– Q3 2024: 15,750 AED/sq m
– Q4 2024: 16,006 AED/sq m
– Q1 2025: 16,022 AED/sq m
Price dynamics are only mildly volatile: the sales level remains within the 15,100–16,200 AED/sq m corridor, with a slight increase in the second half of 2024 and early 2025.
For Al Jadaf (2-bedroom apartments):
The long-term trend (from 2020 to 2023) shows gradual growth: average price per sq m from 8–9 thousand AED (2020–2021) to 12–25 thousand AED (2023–2025). In 2023, there were recorded spikes (up to 25,000 AED/sq m in Q2–Q3), however, more often the district price level over the last 12 months has been in the 16–20 thousand AED/sq m range.
Over the last 12 months, the average price per sq m in Boutique 23 stands at 16,078 AED, while in Al Jadaf it is 19,178 AED/sq m. The building is noticeably below the district average — an approximate discount of about 16% versus the average level in Al Jadaf.
3. Rental dynamics and levels
There are no records of actual rental contracts in Boutique 23 and in the Jaddaf Waterfront master project at the time of this report, most likely due to the building’s recent completion and low leasing activity. Therefore, the analysis is carried out at the Al Jadaf district level.
In Al Jadaf, the sample of major contracts over the last 4 years (more than 39,000 deals) allows for a robust assessment of rental rates:
– From early 2022 to mid-2023, rates increased from 620–760 AED/sq m/year to 815–837 AED/sq m.
– Over the last 12 months, the average annual rate amounted to 961 AED/sq m, with quarter-on-quarter growth: by Q3 2024 it had reached almost 944 AED/sq m (Q4 2024 — 935 AED/sq m).
The overall range of values (for all residential apartments in the district) runs from a minimum of 29 AED/sq m/year (obvious outliers or ancillary premises) to 153,000 AED/sq m/year (rare, ultra-prime or erroneous records; the statistics for the main data set are concentrated around 850–1,050 AED/sq m).
4. Comparison of price and yield (ROI) using a 2-bedroom apartment as an example
Average values over the last 12 months:
– Average purchase price in the building: 16,078 AED/sq m.
– Average purchase price in the district: 19,178 AED/sq m.
– Average rent in the district: 961 AED/sq m/year.
Gross yield:
– For the building, it is not possible to calculate ROI due to the absence of rental contracts in DLD (not a single leased apartment transaction has been recorded).
– For the district, ROI_gross = average rent / average price = 961 / 19,178 ≈ 5.0% per annum (excluding entry/holding costs).
Adjustment for initial costs: with 7% upfront expenses (DLD, brokers, vacancy), the effective ROI_net for the district will be ~4.7% per annum.
Investment fair price range per sq m for a typical apartment in Al Jadaf at a target yield of 7–8%:
– Lower bound: 961 / 0.08 = 12,013 AED/sq m;
– Upper bound: 961 / 0.07 = 13,729 AED/sq m.
Current average prices in both the building and the district significantly exceed this range, indicating the need for a discount from today’s price to achieve a typical target yield of 7–8%. For owners/sellers: the current purchase price does not imply a 7–8% annual yield if one relies solely on confirmed DLD rental contracts.
5. Liquidity and outlook
The sales volume in the building is high (up to 30 deals per quarter), which indicates good liquidity — apartments are in demand both at launch and at the entry to the secondary market. Across Al Jadaf as a whole, both sales and rental activity remain high, demand is stable, and there have been no sharp drops in rental rate dynamics.
The current entry price in the building is slightly below the Al Jadaf district average, which makes the asset more attractive for owners looking for a “primary market entry”. However, when buying for investment purposes, it is important to factor in the mismatch between current price levels and target yield expectations — to reach 7–8% per annum, either a significantly lower entry price or expectations of further rental growth are required.
In the short term (1–2 years), the sector is expected to maintain solid demand, but further rental escalation and substantial capital appreciation are questionable due to high transaction prices relative to achievable ROI.
Conclusion: Boutique 23 is a liquid building with stable sales volumes and transparent price dynamics. For a conservative buy-to-let investor, net ROI will be comparable to the district level (4.7–5% per annum), while the 7–8% level is achievable only with a discount to current market prices.
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