ROI analysis of apartment in DAMAC HEIGHTS: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to DLD, the DAMAC HEIGHTS building is located in the Marsa Dubai area, within the Dubai Marina master project. The analysis uses only DLD sales and rental contracts, with a focus on 2-bedroom apartments (2BR).

The database contains a substantial volume of transactions for the building (over 600 across all years), as well as a large number of rental contracts (more than 2,100 for the entire building), which allows for a confident analysis both for the building and for the area.

2. Liquidity and demand

Sales transactions for 2BR units in DAMAC HEIGHTS show stable activity over the past 4–5 years: in almost every quarter there are between 6 and 21 deals for 2-bedroom apartments. This is a good liquidity indicator for an investor: the asset does not sit idle on the market, and there is a steady inflow of new owners.

The same applies to rentals — the number of contracts over all years confirms a strong tenant presence in the building, which aligns well with buy-to-let strategies.

3. Price dynamics per m² for the building and the area

DAMAC HEIGHTS (2BR):
— In 2020, the average price per m² fluctuated in the range of 12,250–14,300 AED.
— 2021 was notably volatile: from 12,200 to 14,550 AED per m².
— 2022: a significant increase — from 11,200 to 18,480 AED per m² by year-end.
— 2023: prices consolidated at 14,500–18,000 AED per m², with some quarters reaching 16,500 AED.
— Over the last 12 months: the average price for the building is around 19,000 AED per m².

Marsa Dubai (area):
— Here the trend is stronger and the levels are higher: while in 2020 the area averaged 11,300–16,700 AED per m², in 2022–2023 prices rose to 24,000–29,000 AED per m².
— Last 12 months: the average price in the area for 2BR units is 25,800 AED per m² (significantly higher than in DAMAC HEIGHTS).

Conclusion: DAMAC HEIGHTS (2BR) is currently significantly cheaper than the Marsa Dubai average: the difference per square metre is 25–30%.

4. Price range and deal distribution

Recent 2BR transactions in DAMAC HEIGHTS show actual prices per m² ranging from 9,800 to 26,400 AED, most frequently in the 17,000–23,000 AED band. The sizes of the most popular deals range from 74 to 160 m², with unit prices from 1.4 to 3.5 million AED.

5. Rental dynamics and levels

According to DLD, over the last 12 months the average annual rental rate in DAMAC HEIGHTS across all apartments is about 1,390 AED/m². This level is higher than the Marsa Dubai area average (1,315 AED/m²).

The dynamics for DAMAC HEIGHTS are as follows:
— 2020: 830–1,020 AED/m².
— By 2022: growth to 1,080–1,100 AED/m².
— 2023: rents increase to 1,270 AED/m².
— In 2024 we see values in the range of 1,250–1,420 AED/m².

In Marsa Dubai, rental levels have historically been slightly lower, with less pronounced growth, but the average rate has reached 1,280–1,360 AED/m² in 2024.

6. Yield (ROI) comparison

Estimated gross yield (Brutto) over the last 12 months:
— For DAMAC HEIGHTS (building level): 1,390 / 19,015 ≈ 7.3% per annum.
— For Marsa Dubai (based on average price and rent): 1,315 / 25,792 ≈ 5.1% per annum.

Adjustment for acquisition costs (DLD fees, agency commission, other costs — in total about 7% on top):
— Adjusted (“net”) yield for an investor in DAMAC HEIGHTS: around 6.8% per annum.
— For Marsa Dubai: about 4.7% per annum.

7. Fair price range for an investor

To maintain a target yield of 7–8%, the fair purchase price range in DAMAC HEIGHTS is:
— At the current rent of 1,390 AED/m², the indicative purchase price is 17,375–19,860 AED/m².
The current actual market level is around 19,000 AED/m², meaning the building is now close to the upper boundary of the “fair” range: there is no major gap to the target 7–8% yield, and a shift towards price stabilisation is likely.

For Marsa Dubai, the fair price at the same rental levels would be noticeably below the market (16,450–18,790 AED/m² versus the actual 25,800 AED/m²), which explains why yields for most assets in the area are already well below 6% and are set to compress further.

8. Investor takeaways

— Based on DLD data, DAMAC HEIGHTS remains a liquid product with steady demand in the 2-bedroom segment.
— Pricing at 20–30% below the area average allows it to maintain higher yields without taking on extreme vacancy risk.
— Current rental levels support a 6.8–7.3% net yield without the need to discount prices, but the upside potential for capital appreciation in the building is limited — most likely, the coming years will be characterised by price stabilisation.
— Comparable apartments in the wider area deliver lower yields, and investors who bought expensive properties in Marsa Dubai over the last 12 months are facing reduced efficiency.
— On a 3–5 year horizon, the asset stands out within the area precisely due to its combination of price and liquidity, remaining attractive for a buy-to-let model with moderate capital turnover.