ROI analysis of apartment in DIAMOND VIEWS 2: DLD data and real deals

1. Definition of the area and data structure

Actual location: the DIAMOND VIEWS 2 complex belongs to the Al Barsha South Fourth area and the Jumeirah Village Circle (JVC) master project. Around 125 apartment sale transactions in this building are registered in the DLD database, and about 739 residential lease contracts have been recorded for the DIAMOND VIEWS 2 project. In the breakdown of sales by unit type—studios, one‑bedroom and two‑bedroom apartments—0BR in DLD standards appears only as Studio, and nominally 0BR is not present in the transaction structure.

2. Liquidity and demand volume

Over the past four years DIAMOND VIEWS 2 has shown consistent market activity: in 2022–2024, between 4 and 11 apartment sale transactions have been concluded each quarter, indicating a stable presence of both supply and demand. The volume of lease contracts is also high: on average, 25–45 new rental agreements are signed per quarter, which confirms good liquidity of the asset for both tenants and investors.

3. Price and rental dynamics over 3–5 years

The average price per square metre in DIAMOND VIEWS 2 has increased significantly over the past four years:

• At the beginning of 2021, the average transaction level was in the range of 5,300–6,500 AED/m².
• By the end of 2022, the price had risen to 6,200–6,800 AED/m².
• In 2023, the average level reached 7,200–7,500 AED/m², and in the first half of 2024—already 7,800–8,000 AED/m².

The growth rate over this period is noticeably ahead of Al Barsha South Fourth as a whole, where average prices for comparable apartments exceed 13,000 AED/m², but the growth is less volatile.

Rental rates in DIAMOND VIEWS 2 have also increased over the same horizon:

• In 2021–2022, the average rent in the building was 500–600 AED/m² per year.
• In 2023, rental rates crossed the 700 AED/m² mark, and in the second half of 2023 and the first half of 2024 they already reach 790–840 AED/m².
• The average value over the last year is 885.6 AED/m² per year.

Across the area as a whole, the average rental rate is higher and stands at 1,031 AED/m² over the last 12 months.

4. Comparison of price and rent levels: building versus area

DIAMOND VIEWS 2 is noticeably cheaper than the wider area in terms of price per square metre: over the last 12 months the average transaction price in the building has been 9,628 AED/m², while the comparable figure for the area is 15,405 AED/m². Thus, DIAMOND VIEWS 2 is trading at a discount of around 37% relative to the average level in Al Barsha South Fourth.

Rental rates in the building (885.6 AED/m² per year) are also slightly below the area benchmark (1,031 AED/m²), but here the difference is about 14%. This indicates that DIAMOND VIEWS 2 may be attractive to tenants looking for relatively affordable housing in JVC.

5. ROI: returns for the investor

Calculation of the key financial metric based on DLD:

• Gross yield (ROI) at DIAMOND VIEWS 2 based on last year’s averages: about 9.2% per annum (885.6 / 9,628).
• For the area, ROI is slightly lower: around 6.7% (1,031 / 15,405).

Taking into account all acquisition costs (DLD fee, broker commission, registration and related expenses—roughly +7–8% to the entry price), the net yield will approach 8.5% for DIAMOND VIEWS 2 (9.2% / 1.08), and about 6.2% for the area as a whole.

6. Range of “investment‑fair” price

For a yield‑driven buyer targeting 7–8% per annum:

• Fair price for the building at rent of 885.6 AED/m²: range of 11,070–12,652 AED/m².
• For the area at rent of 1,031 AED/m²: range of 12,888–14,731 AED/m².

The current market level at DIAMOND VIEWS 2 (9,628 AED/m²) is even below the lower boundary of the “fair” range, which may indicate that the asset is undervalued relative to its yield level. In the wider area, by contrast, prices roughly correspond to a yield of about 6.7% (adjusted for costs).

7. Brief conclusions and outlook

DIAMOND VIEWS 2 in Jumeirah Village Circle is one of the most attractive buildings in the area in terms of yield: liquidity is supported by steady rental demand and active resale activity, the price level is significantly below neighbouring competitors, and gross ROI over the last year exceeds 9%. For investors focused on income and medium‑term holding, this building can be of strong interest. Compared with Al Barsha South Fourth, where ROI on recent transactions is already below 7% due to high purchase prices, DIAMOND VIEWS 2 looks like an entry point with a better risk‑return balance.