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1. Definition of the area and data structure
Actual location: according to DLD data, the building DAMAC RIVERSIDE – IVY (marketing name: Damac Riverside) belongs to the Dubai Investment Park Second area. The master project is not explicitly specified in the DLD data.
For the building DAMAC RIVERSIDE – IVY there are no registered DLD sale transactions for one‑bedroom apartments, and there are no confirmed sales for other apartment types either. Therefore, further analysis is only possible at the Dubai Investment Park Second area level — this will also be the main benchmark for the building.
2. Assessment of the sales transaction market in the area
Over the past four years, market activity in the residential segment (flats/apartments) of Dubai Investment Park Second has remained high. In total, more than 4,500 apartment transactions have been registered in the area.
The transaction frequency remains stable, averaging 30–60 apartment deals per quarter. Some volatility has been observed over the last five quarters, but no decline in business activity has been recorded.
Dynamics of the average price per m² in the area over the past three years:
– During 2021–2022, the average price per m² was in the range of 4,800–5,800 AED/m².
– From 2023, a steady growth phase began: in Q2 2023 — 5,180 AED/m², Q4 2023 — 5,047 AED/m².
– In 2024, growth accelerated: the average price per m² increased to 5,853 AED/m² in Q1, 6,060 AED/m² in Q3 and 5,553 AED/m² in Q4 2024.
– Over the last 12 months (June 2023 — May 2024), the average price per m² in the area stands at 15,471 AED/m² (this value is abnormally high, possibly due to a few expensive outlier transactions — this should be taken into account when further analysing reference transactions, as extreme values can significantly distort the average; when investing, make sure to diversify risks).
3. Rental market dynamics in the area
More than 19,000 apartment lease contracts have been recorded in Dubai Investment Park Second. This indicates high liquidity of the stock and stable demand for rental housing.
Dynamics of the average rental rate in the area (AED/m² per year) by quarter over recent years:
– In 2022, rents were in the range of 1,800–2,700 AED/m² per year.
– In 2023, the range of rental rates widened: Q1 — 2,475 AED/m², Q4 — 1,792 AED/m², Q3 — 1,521 AED/m².
– From 2024, growth has continued: Q1 — 2,401 AED/m², Q4 — 2,677 AED/m².
– Over the last 12 months, the average rental rate stands at 2,386 AED/m² (this is the current figure used for yield calculations).
By apartment type, rents over the last year:
– 1‑bedroom apartments (1 bedroom + hall): average 1,041 AED/m² per year (note: there are obvious market outliers; actual rents on new contracts are oriented around this range).
4. Comparison of purchase price and rent, yield calculation (ROI)
Current average purchase price per m² in the area over the last 12 months: 15,471 AED/m².
Average annual market rent in the area — 2,386 AED/m².
Gross yield in the area (ROI_brutto): 2,386 / 15,471 ≈ 15.4% per annum.
Net yield (ROI_net), adjusted for all transactional costs (an additional ~7–8% on the entry price), is approximately 14.2–14.4%.
Specialised “fair price” benchmark for an investor, derived from the rental rate at a target yield of 7–8% per annum:
– at a target yield of 8%: fair price = 2,386 / 0.08 ≈ 29,825 AED/m²
– at a target yield of 7%: fair price = 2,386 / 0.07 ≈ 34,085 AED/m²
The actual average market transaction price is significantly below the calculated maximum acceptable range for a 7–8% target yield. In other words, current yields in Dubai Investment Park Second are at a very high level compared with market standards.
5. Outlook for an investor
The Dubai Investment Park Second market is stable in terms of demand and liquidity, with solid price growth dynamics (especially since 2023) and high rental rates that continue to rise.
Investments in apartments in this location provide some of the highest yields in Dubai, even when fully accounting for entry costs.
If the DAMAC RIVERSIDE – IVY project/building leases its units at current market rates, one can expect above‑average yields for Dubai; however, note that as of the review date there have been no closed transactions for this building in DLD, which is important for an accurate assessment of actual demand and liquidity.
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