ROI analysis of apartment in DIVINE LIVING: DLD data and real deals

1. Definition of the area and data structure

Actual location: DIVINE LIVING is located in Al Barshaa South Third and belongs to the Arjan master project (DLD data). This is confirmed by the results of actual sale transactions recorded for DIVINE LIVING in the DLD database.

For the building, 180 sale transactions and 40 rental contracts were found. The sample for sales and rentals allows for a comprehensive analysis and a direct comparison of the asset with the performance of the master project and the wider area.

2. Liquidity and transaction volume

The volume of sale transactions in DIVINE LIVING is high for a new building: over the last 12 months alone, 47 apartment transactions (standard size segment) were completed in the building, and previously there were up to 30+ transactions in individual quarters. In terms of transaction volume, the building appears liquid, with a stable presence on the market.

The volume of rental contracts is also significant — at least 40 apartment contracts were signed over 12 months, indicating strong tenant demand. This provides a sufficiently reliable sample of actual rental rates.

3. Dynamics and structure of sale prices

The data shows that the average price per square metre for apartments in DIVINE LIVING based on closed DLD transactions over the last 12 months is 12,100 AED/m² (rounded). By quarter for 2023–2025, there is moderate growth and stabilisation in the 10,400–13,200 AED/m² range:

– 2023 Q3–Q4: 10,400–10,800 AED/m²
– 2024 Q1–Q3: 10,400–10,700 AED/m²
– 2025: stabilisation at 11,700–13,200 AED/m²

The share of transactions “above” and “below” the average is small; the price range is narrow, with no extreme outliers, which is positive for assessing the transparency of the segment and the internal structure of demand in the building.

For comparison, across the Arjan master project the average price per m² for apartments over the last 12 months is about 15,000 AED/m², which is roughly 24% higher than the average for DIVINE LIVING. Historically, the master project has shown a smooth trajectory from 13,200 AED/m² at the beginning of 2023 to 15,800–16,000 AED/m² by the end of 2025.

4. Dynamics and structure of rental rates

For DIVINE LIVING, the average actual rental rate for apartments over the last 12 months is 1,060 AED/m² per year (based on 40 contracts). By quarter, the values are stable: in 2024–2025 the average rate is in the 1,050–1,065 AED/m² range, without sharp jumps.

The area level (Al Barshaa South Third) is slightly lower: the average apartment rent in the area over 12 months is about 940 AED/m²; in terms of volume this is tens of thousands of contracts, which confirms a robust market benchmark for yield.

Thus, rental rates in DIVINE LIVING are approximately 13% higher than in the area overall, which is typical for new, popular, or otherwise competitive buildings.

5. Comparison of returns (ROI) for the building and the area

Actual gross ROI for the building (based on the last 12 months):

– Purchase price: 12,100 AED/m² (DIVINE LIVING)
– Rent: 1,060 AED/m² per year (DIVINE LIVING)
– Gross ROI for the building ≈ 8.8% (1,060 / 12,100)

For Al Barshaa South Third:

– Purchase price: 15,000 AED/m² (Arjan)
– Rent: 940 AED/m² (area)
– Gross ROI for the area ≈ 6.3% (940 / 15,000)

Taking into account additional acquisition costs (DLD fee 4%, broker 2%, miscellaneous expenses), the actual net ROI will be 7–8% lower than the gross figure (i.e. in the region of about 8.2–8.3% for the building for a turnkey purchase). This is above the “area” level and is quite attractive for Arjan/Al Barshaa South Third.

6. Fair price range for an investor

The calculated fair price range for a target yield of 7–8% per annum based on the building’s rental rates:

– at a target yield of 8%: 1,060 / 0.08 = 13,250 AED/m²
– at a target yield of 7%: 1,060 / 0.07 = 15,140 AED/m²

The actual average transaction price in DIVINE LIVING (12,100 AED/m²) is already 8–17% below these “investment benchmarks”, which makes the building very attractive in terms of yield relative to the market. Across the Arjan master project and the area, average sale prices exceed this range, and ROI is lower.

7. Investor conclusions and outlook

DIVINE LIVING shows a high volume of transactions and steady demand from both buyers and tenants, with transparent deal dynamics and stable actual rental performance. In 2024–2025 the building outperforms both the area and Arjan in terms of investor returns (ROI 8.8% on real deals versus 6–6.3% for the area), immediately fitting into the upper band of the fair investment price range for a target yield of 7–8% per annum.

High liquidity, an accessible entry price and strong internal rental dynamics make this building an attractive choice for long-term passive income. Given that in the Arjan market price upside is constrained by rapid growth in previous years, it is precisely new projects with advantageous entry prices and strong market rental rates that can maintain a noticeable investment premium in the coming years.