1. Definition of the area and data structure
Actual location: According to Dubai Land Department, the residential building D1 is located in Al Jadaf, within the Jaddaf Waterfront master project. The table only contains transactions for this area with an exact name match (D1), so the DLD database unambiguously confirms the location. Al Jadaf is therefore used as the benchmark district.
Data volume: For sales of 1-bedroom apartments (1BR) in D1, 92 transactions have been collected since 2020, with dates extending through November 2025 (including future-dated deals, though only those completed as of today are used in the analysis). For rentals, 1,514 residential contracts have been recorded for the building over the entire available period, of which 198 were concluded over the last 12 months.
2. Sales dynamics of the building and the area
Sales frequency and history: Transaction activity in D1 is relatively evenly distributed from 2020 to 2024. Over the last 12 months, 11 sales of 1-bedroom apartments have been recorded.
Quarterly dynamics of the average price per m² for D1 apartments (1BR):
– 2020 started at 9,900–14,000 AED/m², after which prices stabilized in the 11,000–14,000 AED/m² range.
– In 2022–2023 the average price per m² held at 13,800–14,300 AED/m².
– By early 2024 growth is evident: Q1 — 14,800 AED/m², and the last 12 months average at around 16,660 AED/m².
– Below the market level the growth is sharper: in the last quarters of 2024 and early 2025 deals are closing at 17,600–18,000 AED/m².
The Al Jadaf area (1BR — benchmark across all projects) shows:
– In 2020: a very wide range with troughs down to 8,500–10,000 AED/m².
– 2022–2023: a gradual recovery from 11,700 to 18,600 AED/m².
– Over the last 12 months the district average (based on 1,474 transactions) is about 18,270 AED/m², i.e. higher than in D1.
Conclusion: Historically, D1 was priced slightly above the district average during weaker market periods (2020–2022), but from 2023 to date the district averages have already overtaken D1. In other words, D1 has ceased to be a price leader in its segment.
3. Rental analysis: rates and dynamics
For D1 over the last 12 months, the entire segment (all residential units, not only 1BR) shows:
– Average annual rental rate — 1,186 AED/m² across 198 contracts, which provides a valid and representative picture.
For comparison, in Al Jadaf:
– Average rental rate — 966 AED/m² (8,204 contracts per year).
Dynamics for the building (all years):
– 2020–2021: rents at 740–900 AED/m².
– From 2022 — accelerated growth to 1,070–1,200 AED/m²; in the most recent quarters growth continues, with the current level across several recent quarters holding in the 1,100–1,270 AED/m² range.
In Al Jadaf the growth is less pronounced: market acceleration becomes noticeable only in 2024–2025, when rates jump to 935–1,034 AED/m² in the new quarters.
Conclusion: D1 is consistently rented at a premium to the district average rental rate (approximately 23% above the area benchmark).
4. Comparison of yearly metrics (last 12 months)
– Average sales price per m² (D1, 1BR): 16,660 AED/m²
– Average sales price per m² (Al Jadaf, 1BR): 18,265 AED/m²
– Average rent per m² (D1, all residential): 1,186 AED/m²/year
– Average rent per m² (Al Jadaf district): 966 AED/m²/year
There is no separate 12‑month rental dataset specifically for 1BR units in D1, but the overall building rental sample is sufficient to treat the estimate as indicative for an investor.
5. ROI and “fair price” from an income perspective
Calculated gross ROI for D1 (based on average prices and rents over 12 months):
1,186 / 16,660 ≈ 7.1% per annum (gross)
For Al Jadaf:
966 / 18,265 ≈ 5.3% per annum.
Adjustment for costs (taxes, fees, vacancy — in total +7% to entry cost):
– Net yield (net ROI) for D1: ~6.6% per annum.
– Net yield for the district: ~5.0% per annum.
“Fair price range” at a target yield of 7–8% (a reference for discount/premium for an investor):
– For D1: the fair purchase range lies within
[1,186 / 0.08 ; 1,186 / 0.07] = [14,825 ; 16,943] AED/m²
– The current actual sales price in D1 (16,660 AED/m²) is slightly below the 7% yield threshold, but already near the upper bound of the range — buying at market in D1 delivers about 7–7.1% gross.
– For Al Jadaf: [966 / 0.08 ; 966 / 0.07] = [12,075 ; 13,800] AED/m²; however, properties in the district are selling above this range at a lower ROI.
Accordingly, at current ratios D1 offers a more attractive yield than the Al Jadaf market on average, with a substantial premium to the average rental rate and a lower entry price per m².
6. Liquidity and demand structure
– In terms of sales volume, D1 is liquid: 11 1BR transactions per year is a solid pace for a single building, with no signs of stagnation.
– 198 rental contracts per year indicate high lease-up and resilient demand.
– Al Jadaf as a whole is a macro-leader: tens of thousands of sales and rental contracts, with deep market liquidity.
7. 3–5 year outlook
Price growth in the building is stable, but has recently been lagging behind aggregate growth across the district. D1 remains an attractive choice for yield-focused investors: the market price has not yet risen to a level that would push returns below the 7% target, while rental rates consistently maintain a premium to Al Jadaf.
Given the liquidity and stable dynamics of demand and rents, D1 is suitable for investment: current parameters allow net yields to stay above the district average and above the overall Dubai average. Higher prices across the district make D1 a comparatively more advantageous choice in terms of rent-to-price ratio.
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