ROI analysis of apartment in DEZIRE RESIDENCES: DLD data and real deals

1. Definition of the area and data structure

Actual location: DEZIRE RESIDENCES is located in Al Barsha South Fourth, within the Jumeirah Village Circle master project (confirmed by DLD). The DLD database records more than 130 sale transactions and over 470 rental contracts for DEZIRE RESIDENCES, which is sufficient for a robust analysis with a breakdown by studios.

2. Liquidity and transaction frequency

Studio sales in DEZIRE RESIDENCES have been recorded from 2020 through to the current year. Activity was intermittent up to 2023, then started to accelerate: in 2023 and 2024 the number of registered transactions increased significantly, indicating elevated market liquidity for the building in recent periods. The transaction volume is also stable in the context of the wider area: in Al Barsha South Fourth, apartment sales have been recorded every quarter over the past 4 years.

The rental market is also very active: several hundred recent lease contracts have been registered for DEZIRE RESIDENCES, pointing to strong tenant demand.

3. Purchase price dynamics and levels

The average price per square metre in DEZIRE RESIDENCES (studios) over the last 12 months is 10,919 AED/m². In Al Barsha South Fourth the average is higher – 15,508 AED/m² (filtered for studio apartments), meaning DEZIRE RESIDENCES is trading significantly below the area benchmark (by roughly 30%).

Price dynamics for DEZIRE RESIDENCES:
– In 2020–2021 – fluctuations in the range of 6,500–7,000 AED/m² (studios).
– From 2022 a gradual increase begins – levels rise to 8,000–9,000 AED/m².
– During 2023–2024 the average price reaches 11,000–12,000 AED/m², indicating a strong recovery and growing demand.

In Al Barsha South Fourth itself, the pace of price growth over the last 3 years has been even higher: the average price per m² rose from 9,000–10,000 AED/m² in 2020–2022 to almost 15,000–16,000 AED/m² in 2024, so the average studio price in the area now significantly exceeds the level of this particular building.

4. Rental rate dynamics and levels

The average rental rate per m² for studios in DEZIRE RESIDENCES over the last 12 months is 1,090 AED/m² per year. For the area under the same filters it is 1,279 AED/m² per year, again roughly 15% higher than in the building.

Rental dynamics for the building:
– 2020–2021: average range 530–580 AED/m² (studios), stable.
– 2022: jump to 750–770 AED/m².
– 2023: accelerated growth to 900–1,050 AED/m² in 2024, indicating a general trend of rising demand and rental rate inflation.
– The area shows a similar dynamic, but with slightly higher average levels and a comparable growth pattern.

5. Comparison with the area and yield (ROI) assessment

Current levels:
– DEZIRE RESIDENCES: average purchase price 10,919 AED/m², rent 1,090 AED/m².
– Al Barsha South Fourth (studios): purchase 15,508 AED/m², rent 1,279 AED/m².

Gross ROI using the formula (rent per m² / purchase price per m²)
– Building: ~10.0% (1,090 / 10,919).
– Area: ~8.2% (1,279 / 15,508).

Adjusting for standard “entry” costs (around 7% on acquisition): the effective (“net”) yield declines to ~9.4% for the building and ~7.7% for the area.

“Fair price” range for an investor targeting a 7–8% ROI:
– For DEZIRE RESIDENCES: 13,600–15,570 AED/m² (rent of 1,090 divided by 0.08–0.07 respectively).
– For the area: 15,990–18,270 AED/m².

The actual price in DEZIRE RESIDENCES (10,919 AED/m²) is noticeably below even the lower bound of the “investment fair value” range: at current prices, the yield potential under formal criteria is very high.

6. Conclusion and outlook

DEZIRE RESIDENCES is a liquid project with steadily growing demand and a solid transaction history for studios. Price dynamics show rapid growth since 2022, yet the project remains significantly more affordable than the area average. From an investor’s perspective, DEZIRE RESIDENCES currently offers a potential yield substantially above the area average and above the basic 7–8% benchmark, even after factoring in all entry costs.

The rental market is stable, with low vacancy, which further supports the project’s attractiveness. For strategic investors and owners, DEZIRE RESIDENCES remains one of the leaders in terms of actual ROI among studios in Al Barsha South Fourth.

The main risks to future returns are associated with potential purchase price growth — if prices reach the area level, yields will compress to average market values.