ROI analysis of apartment in DESERT SUN TOWER: DLD data and real deals

1. Defining the area and data structure

Actual location: According to DLD, the DESERT SUN TOWER building is located in Wadi Al Safa 5 and is part of the Dubai Land Residence Complex master project. Apartment filters — studio (0BR), since in the DLD structure the value in rooms_en for studios is “studio”.

The DLD database records 103 transactions in this building over the entire period since the first sale on 20 January 2020. Transaction activity has been uneven, with peaks in 2025 (a significant share is most likely scheduled registrations after project completion). However, only completed periods are used for analysis, excluding future dates.

2. Liquidity of the building and the area

Over the past 4 years, transactions with studio apartments have been taking place on a regular basis, although volumes are not very high (from 2 to 6 deals per quarter in active periods), which is typical for the studio segment in new budget-class developments. At the Wadi Al Safa 5 area level, the market is more dynamic and diversified, with sales recorded across the full range of apartment types.

The DLD database contains a sufficient number of lease contracts both for the building itself (via project_name_en DESERT SUN TOWER) and for the wider area.

3. Apartment price dynamics

For DESERT SUN TOWER (studios):

In 2020, the average transaction price per m² was around 5,000–5,200 AED.
After minor fluctuations, a sharp increase occurred in 2023–2024: the average price per m² for studios over the last 12 months rose to 8,160 AED.
Historical quarterly values: growth from 4,700–5,400 AED (2020–2022) to 8,000+ AED (from 2023 onwards).
Average transaction price per m² over the last 12 months: 8,158.9 AED.

For Wadi Al Safa 5 area:

The range of average apartment prices in the area over the past 5 years has varied from 6,000 to 10,000+ AED/m², with an accelerating growth trend in 2023–2024.
Over the last 12 months, the average price per m² in the area is 14,001.4 AED.
This is almost 72% higher than in the building itself, which may indicate that the property is positioned as a more affordable option within the location.

4. Rental dynamics and levels

For DESERT SUN TOWER (studios):

Over the last 12 months, the average rental rate for a studio in the building was 794.9 AED/m²/year.
Over the past 2 years, rents have increased from ~680 to 750–790 AED/m²/year.

For Wadi Al Safa 5 area (apartments):

Rental rates for standard apartments (Flat) are around 715.6 AED/m²/year over the last 12 months.
Growth is also evident: from 500 AED/m²/year in 2021–2022 to 630–750 AED/m²/year in 2024.

5. Comparison of the building with the area

The sale price of studios in DESERT SUN TOWER is significantly lower than the average apartment price level in the area (8,158 vs 14,001 AED/m² over the last 12 months), making this property one of the most affordable in the vicinity. Rental rates in the building, however, are slightly above the area average — about 795 AED/m²/year versus 716 AED/m²/year in the area, which reflects strong tenant demand for studios.

6. Return on investment (ROI) assessment

For the building:
- Annual rent to purchase price (brutto ROI): 9.8% (calculated using data for the last 12 months).
- Brutto ROI = 794.9 / 8,158.9 ≈ 0.0975 (or 9.8%).
- Net ROI (after deducting entry costs of 7–8%): approximately 9.1–9.2%.
For the area:
- Brutto ROI = 715.6 / 14,001.4 ≈ 0.0511 (5.1%), net ROI around 4.7–4.8%.

Thus, studios in DESERT SUN TOWER currently appear more profitable for a buy-to-let investor compared with average apartments in the area (with both a lower entry price and a slightly above-market rental rate).

7. “Fair price” analysis for an investor

If an investor targets a 7–8% annual yield, the “fair” price per m² for a studio is in the range of 9,937–11,356 AED (calculated as 794.9 / 0.08 and 794.9 / 0.07).
The current market price according to DLD (8,158.9) is even below this range, which indicates an attractive buying opportunity — there is no need to negotiate a substantial discount to reach the target yield.

8. Conclusions and outlook

The property demonstrates good liquidity: there is steady demand for studios, both in sales and in rentals. Over the past two years, both purchase prices and rental rates have been rising, yet the entry level for this building still remains significantly below the area average. The yield of the property according to DLD is consistently higher than the typical level for the area.

For a rental-focused investor, studios in DESERT SUN TOWER currently look very attractive (real ROI 9%+), although as prices move closer to the area averages, yields may adjust downward. The overall upward trend in prices and rents in the area persists, but a “catch-up” process is possible, where apartment prices in the building move towards the area’s market benchmarks.

The data is provided for the last 12 months (July 2023 — July 2024).