1. Definition of the area and data structure
Actual location: According to DLD, the DAMAC RIVERSIDE – IVY project is located in the Dubai Investment Park Second district. All further comparisons and calculations are therefore based on this district, since there are still no transactions or rental contracts for the specific 2-bedroom unit in this particular building in the open DLD database. Aggregated district-level data was used for the analysis.
Transaction structure: There are no recorded transactions with 2-bedroom apartments directly in DAMAC RIVERSIDE – IVY, however the entire project shows 603 transactions over the whole period. In Dubai Investment Park Second the number of transactions is significantly higher — more than 9,500, and the number of active rental contracts over the entire period exceeds 19,000. For the calculations, filters were applied by unit size (excluding abnormally small and large areas), as well as by valid sale and rental price values.
2. Demand and price dynamics in the district
Liquidity: The last 3–4 quarters have been marked by a noticeable increase in transaction volumes in the district. For example, in Q4 2024 more than 1,100 deals were recorded, and since Q3 2023 volumes have been growing steadily. This confirms high liquidity, strong demand for the area and solid prospects for large-scale projects.
Price dynamics per square metre: Over the past 5–6 quarters (since early 2023), the average price per square metre in the district has more than tripled: from 4,700–5,000 AED/m² in 2023 to 16,000–17,000 AED/m² in Q3–Q4 2024. This sharp change is largely driven by the launch of new large residential projects such as DAMAC RIVERSIDE and the overall renewal of the market.
The average price per m² in the district over the last 12 months amounted to 16,495 AED/m², based on actual transaction prices and with anomalies excluded.
3. Rental market analysis
There are still no rental contracts for DAMAC RIVERSIDE – IVY in the open DLD data, so all values are taken for Dubai Investment Park Second as a whole. The number of contracts (more than 19,000 over the entire history) allows for a confident assessment of the market level.
The dynamics of average rent per m² show a similar, though less dramatic, growth: while in 2023 average values were 1,500–2,300 AED/m² per year, over the current 12-month period the average annual rent stands at 2,656 AED/m². Quarterly breakdown confirms an upward trend: in the last few quarters values have consistently exceeded 2,400–2,700 AED/m².
4. Ratio of sale prices to rents (yield calculation)
Price per m² (last 12 months, by district): 16,495 AED/m²
Rent per m² per annum (last 12 months, by district): 2,656 AED/m²
Brutto ROI for the district: 2,656 / 16,495 ≈ 16.1% per annum (before expenses).
Adjustment for actual entry costs (taxes, commissions, fees):
Net ROI is estimated as brutto ROI divided by approximately 1.07–1.08 (it is common to assume 7–8% for total transaction costs). As a result, the indicative net ROI is around 14.9–15.0% per annum.
Fair price range per m² for an investor targeting a 7–8% annual yield (by district):
– at 7% yield: 2,656 / 0.07 ≈ 37,943 AED/m²
– at 8% yield: 2,656 / 0.08 ≈ 33,207 AED/m²
Thus, current market prices are significantly below the range that corresponds to a 7–8% annual yield (the actual brutto ROI is much higher). This is due to the sharp price growth over the past year — such an anomaly is often observed at the stage when large new projects are being introduced in districts that are still in the early phase of residential development. However, it is important to understand that if the market starts to saturate, ROI will tend to return to the standard range either through further growth in sale prices or through an adjustment in rental payback.
5. Conclusions and outlook
– The DAMAC RIVERSIDE project is located in a district with rapidly growing liquidity: transaction volumes have increased substantially, and housing demand is confirmed by DLD data.
– The price growth per m² was extreme in 2024, but the rental market has also shown a significant increase — this supports investment attractiveness even at the new price levels.
– As of the last 12 months, actual yield indicators (brutto and net ROI) in the district significantly exceed the “target” 7–8% per annum, as sale prices still outpace the growth of rental rates. As the market evolves, this gap is likely to narrow.
– The absence of direct transactions and rentals for 2-bedroom units specifically in DAMAC RIVERSIDE – IVY is natural for new or off-plan projects — the key metrics are therefore taken at district level.
Recommendations:
If your goal is to achieve a stable 7–8% annual yield with low risk and a long holding period, a purchase even at current prices still offers a substantial safety margin (according to DLD data for Dubai Investment Park Second). Nevertheless, it is important to factor in that the extreme price growth may slow down or correct as the market matures, and to plan an investment horizon of at least 3–5 years.
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