ROI analysis of apartment in Dana Tower: DLD data and real deals

1. Definition of the area and data structure

Actual location: according to DLD transaction data, Dana Tower is located in Al Barsha South Fourth, master project Jumeirah Village Circle. Filtering by building and by studios in the database works correctly. There are 13 recorded sale transactions for studios in this building, and there is also valid rental data.

2. Sales analysis (prices and dynamics)

Over the past 5 years, there has been a steady number of studio transactions in Dana Tower — on average 2–3 sales per year. The total number of transactions in the area exceeds 74,000, so overall liquidity in Al Barsha South Fourth is high.

Quarterly dynamics of the average price per m² for studios in Dana Tower:
– Last 12 months: the average transaction price is about 9,016 AED/m².
– For 2021–2025 there is an upward trend: from 6,200–6,400 AED/m² (2021) to 8,900–9,100 AED/m² (2025), although the transaction volume is small and individual quarters may be distorted due to limited statistics.

For comparison, in the wider area (Al Barsha South Fourth) studios over the last 12 months were sold at an average of 17,525 AED/m². The area price level is 1.9 times higher than the building average. This is typical for properties that are older than the market average or have a less liquid location, while the overall benchmark grows faster.

3. Rental analysis (annual rental rate per m²)

In Dana Tower over the past 12 months there have been 5 relevant studio rental contracts (Residential). The average effective rental rate is 997 AED/m²/year.

For the area (Al Barsha South Fourth), the average rental rate for studios is higher: 1,265 AED/m²/year (analysis for the same period).

Historically, rental rates in the building also show growth: from 480–630 AED/m²/year in 2020–2022 to 950–1,370 AED/m²/year in 2024–2025 (based on individual transactions).

Liquidity for both sales and rentals is preserved, but in Dana Tower itself the number of contracts is limited — no more than 5–6 studio transactions per year.

4. Comparison and profitability (ROI)

Current levels:
– Dana Tower: sale price 9,016 AED/m², rent 997 AED/m²/year.
– Area: sale price 17,525 AED/m², rent 1,265 AED/m²/year.

Gross ROI based on actual transactions in Dana Tower:
– ROI for studios = 997 / 9,016 ≈ 11.1% per annum.

Gross ROI for the area = 1,265 / 17,525 ≈ 7.2% per annum.

Adjustment for transaction costs (DLD, broker, expenses — we assume 7% at entry):
– Dana Tower, net ROI ≈ 11.1% / 1.07 ≈ 10.4% per annum.
– Area, net ROI ≈ 7.2% / 1.07 ≈ 6.7% per annum.

Fair purchase price range for an investor targeting a 7–8% annual yield:
– For the building: range 12,460–14,240 AED/m² (997/0.08; 997/0.07).
– For the area: range 15,813–18,071 AED/m² (1,265/0.08; 1,265/0.07).

Units in Dana Tower are trading on the market at a noticeable discount to the area level — the building’s price is almost 50% below the area average for studios, while achievable rents are only about 21% lower than the area rate. This creates above‑market returns in terms of “gross yield”, but it is confirmed by a relatively small number of transactions; additional asset‑specific risks are possible.

5. Liquidity and outlook

Dana Tower shows stable but modest liquidity for studios (up to 2–3 sales and 5–6 new rental contracts per year). The JVC (Al Barsha South Fourth) area remains one of the largest in terms of primary and secondary market turnover and studio rentals.

Since 2021, both prices and rents have been growing steadily, however Dana Tower is lagging behind the area benchmark in terms of price growth. An income‑focused investor can achieve an outstanding gross yield here (over 10% net), but this comes with a discount in asset value.

6. Conclusion

Dana Tower as an investment vehicle for a studio: in 2024–2025 it delivers returns significantly above the area average when entering at DLD transaction prices. However, one should factor in potential costs to maintain competitiveness, a higher probability of vacancy, and the specific demand profile for older stock in JVC.

The DLD purchase price is significantly below the fair range for a target yield of 7–8% (this would require more than a 30–50% increase in the building’s price). Liquidity is below average, but for an investor ready to work with an asset priced below the general market level, this can be an interesting case for a long‑term rental strategy.