ROI analysis of apartment in DAR AL JAWHARA: DLD data and real deals

1. Definition of the area and data structure

Actual location: DAR AL JAWHARA building, according to DLD data, is located in Al Barsha South Fourth, within the master project Jumeirah Village Circle.

A total of 81 transactions have been recorded for this building, of which 7 relate to 2-bedroom apartments, which limits the level of detail at the individual-unit level. At the district level, however, the flow of sales and rental contracts is very large and sufficiently representative, which allows for meaningful comparisons and conclusions about fair yields.

2. Asset liquidity and transaction frequency analysis

For 2-bedroom apartments in DAR AL JAWHARA, transactions were recorded in 2021, 2022, 2024 and 2025, which indicates some liquidity in this segment. Over the last 12 months there has been only one transaction, meaning that at the moment liquidity for this specific layout is limited, while for the entire project and the wider area the situation is much stronger (at the district level there are thousands of transactions per year).

3. Price dynamics per square metre over 3–5 years

In DAR AL JAWHARA, for 2BR apartments, the average prices per m² (averaged by quarter) are:
– 2021 (Q2–Q3): 7,706–7,776 AED/m².
– 2022 (Q2–Q4): 6,428–8,064 AED/m².
– 2024 (Q3): 7,837 AED/m².
– 2025 (Q3): 11,723 AED/m².

In Al Barsha South Fourth, 2-bedroom apartments show a steady increase:
– 2021 (on average): 6,959–7,905 AED/m².
– 2022: range of 8,352–9,051 AED/m².
– 2023: growth to 10,301–11,516 AED/m².
– 2024: 11,290–12,278 AED/m² by quarter.
– 2025 (last 4 quarters): 12,583–13,225 AED/m².

Overall, the pace of price growth in the district significantly outpaces the dynamics of the specific building DAR AL JAWHARA, which only in the latest 2025 transaction showed a price close to the district average.

4. Rental market and rental rate analysis

For the DAR AL JAWHARA building itself, the presence of rental contracts is confirmed: over the last 12 months, 67 active residential rental contracts have been registered (for the building as a whole).

Average annual rental rate per m² over the last 12 months:
– For DAR AL JAWHARA: 851 AED/m²/year.
– For Al Barsha South Fourth: 1,031 AED/m²/year.

Rental dynamics for the building (DAR AL JAWHARA):
– 2021: 495–560 AED/m²/year.
– 2022: 480–650 AED/m²/year.
– 2023: 607–786 AED/m²/year.
– 2024: 687–804 AED/m²/year, followed by an increase to 872–900 AED/m²/year by mid-2025.

In Al Barsha South Fourth the trend is similar, but at higher levels:
– 2021: around 561–610 AED/m²/year.
– 2022: 616–679 AED/m²/year.
– 2023: 745–812 AED/m²/year.
– 2024: 849–967 AED/m²/year.
– 2025: 963–1,067 AED/m²/year (the last quarters have shown an acceleration in growth).

5. Comparison of current price and rental levels over the last 12 months

Average levels over the last 12 months:
– Purchase price for 2BR in DAR AL JAWHARA: 11,723 AED/m² (based on a single recent transaction).
– Purchase price for 2BR in the district: 12,859 AED/m² (around 10% higher than the building).
– Rent in the building: 851 AED/m²/year.
– Rent in the district: 1,031 AED/m²/year (around 21% higher than in the building itself).

Thus, the current level in the building lags behind the district benchmark both in rental income and slightly in price per m².

6. Investment yield (ROI) and fair investment price

Current annual gross ROI for a 2BR in DAR AL JAWHARA based on data for the last 12 months:
– For the building: 851 / 11,723 = 7.3%
– For the district: 1,031 / 12,859 = 8.0%

Taking into account standard entry costs (7–8% of the transaction price; net yield ≈ gross / 1.07–1.08):
– For the building: 6.8–6.9% net per annum.
– For the district: 7.3–7.5% net.

Fair investment price range (for a target yield of 7–8% per annum):
– For 2-bedroom apartments in DAR AL JAWHARA: to achieve 7–8% on the current average rent (851 AED/m²), the fair purchase price is from 10,638 to 12,157 AED/m².
– For the district the range is higher – from 12,888 to 14,729 AED/m².

Comparison with the actual price: the recent sale in the building falls exactly within the range that provides a yield of about 7–7.5% per annum before costs. When buying at the average district price, the yield will be slightly below standard investment expectations, while buying at the building’s level is more attractive, provided that rental rates in the building itself move closer to the market (which is likely given the current trend).

7. Conclusions and outlook

DAR AL JAWHARA, in the 2-bedroom segment, has in recent years significantly lagged the market in both rental rates and price per m², but the latest sale in 2025 showed a market repricing. Al Barsha South Fourth, driven by the dominance of JVC, demonstrates steadily growing demand, stable liquidity, and accelerating dynamics in both yields and prices. The growth in average rents in the building is clearly visible and remains slightly below the district average, which provides potential upside for future tenants and investors.

Overall, transaction liquidity is relatively low (isolated 2BR sales in the building, but a large flow of rentals and sales across the district). The asset appears investment‑viable for a 3–5 year horizon strategy, with yields above 7% per annum when buying at the level of the latest actual sales or with a reasonable discount to district peaks. The pace of growth in the district and demand suggests a likely convergence of the building’s yields towards district averages.