ROI analysis of apartment in Damac Heights: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to the DLD database, the DAMAC HEIGHTS building is located in the Marsa Dubai area, within the Dubai Marina master project.
According to DLD, more than 600 sales and over 2,000 rental contracts (at the project level) have been recorded for this building.

2. Liquidity and transaction frequency

Liquidity in DAMAC HEIGHTS is very high — 15–40 transactions per quarter are regularly recorded, and the number of rental contracts in the project is also significant. This activity indicates stable demand and a strong position of the asset both for investment and for end‑user living.

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

The average price per m² in DAMAC HEIGHTS has shown growth over the past five years: while in 2020 the average level was 13,600–14,800 AED/m², by 2022 prices had consistently exceeded 15,000 AED/m², and in the last four quarters reached 19,200–19,400 AED/m².

For comparison: the average price in the Marsa Dubai area over the last 12 months is around 26,600 AED/m², noticeably higher than in DAMAC HEIGHTS. This indicates that entering this building implies buying at a relative discount to the average market level of the area.

4. Rental rates and their dynamics

For studios (0BR) in DAMAC HEIGHTS no individual contracts have been recorded over the last 12 months; however, across the entire project and building the average rental rate per m² (for all types of residential apartments) over 12 months amounted to 1,381 AED/m². In Marsa Dubai it is slightly lower, at 1,312 AED/m².

Rental growth has been very pronounced: from around 850–1,050 AED/m² in 2020–2021 to 1,250–1,400 AED/m² in recent quarters, reflecting both the citywide trend and the strong appeal of Dubai Marina.

5. Current yield levels (ROI) for an investor

According to DLD data for the last 12 months:
– Average purchase price per m² in the building: 19,881 AED/m².
– Average annual rent per m² in the building: 1,381 AED/m².
– Gross yield (ROI_brutto) for the building: about 6.95% per annum.

Comparable calculations for Marsa Dubai:
– Average purchase price per m²: 26,584 AED/m².
– Average rent: 1,312 AED/m².
– Gross yield for the area: about 4.9% per annum.

Adjusting for transaction costs (~7%) results in a “net” yield (ROI_net) of around 6.5% for the building and 4.6% for the area. This is a strong figure for the prime residential segment, especially against the backdrop of rising prices and rental rates in recent years.

6. Fair price range for a target yield of 7–8% per annum

To target a 7–8% yield (a typical goal for an investor in Dubai Marina):
– Fair price range for the building: 1,381 / 0.08 ≈ 17,260 AED/m² (8% yield) and 1,381 / 0.07 ≈ 19,729 AED/m² (7%).
– The current market price per m² in the building is right at the upper boundary of this range — an investor will need only a minimal discount to reach a planned 8% per annum, or can focus on a yield closer to 7%, which is still significantly above the Marsa Dubai average.

7. Outlook and dynamics

DAMAC HEIGHTS demonstrates steady price growth supported by strong liquidity and a solid demand base. The Dubai Marina (Marsa Dubai) area is one of the most sought‑after and stable locations both for living and for short‑ and long‑term rentals.
Provided the current trend continues, an investor can expect preservation and gradual appreciation of the asset’s value, along with a stable income above the area’s average.

Conclusion: DAMAC HEIGHTS is attractive for investment compared to the area average thanks to its higher yield and relative price discount, while the high transaction volume confirms its liquidity. The project is promising both for rental strategies and for medium‑term holding with subsequent resale.