ROI analysis of apartment in DUBAI ARCH TOWER: DLD data and real deals


1. Definition of the area and data structure

Actual location: according to the DLD database, DUBAI ARCH TOWER is located in Al Thanyah Fifth and belongs to the Jumeirah Lakes Towers master project. The sample of transactions for this building is extensive: a total of 315 sales have been recorded in the database, and more than 1,300 rental contracts based on the project filter alone.


2. Liquidity and demand

Over the past 12 months, 19 transactions with 1-bedroom apartments (1BR) have been recorded in DUBAI ARCH TOWER, along with 228 confirmed annual rental contracts. This is a high turnover level for the ready property segment, indicating stable liquidity and strong demand from both buyers and tenants.

For Al Thanyah Fifth (1BR apartments), the transaction volume is almost 1,000 per year, and more than 9,000 contracts in the rental market. This confirms consistently high demand and an active market in the location.


3. Price dynamics per m² for the building and the area

DUBAI ARCH TOWER, 1BR:
– Average sale price per m² over the last 12 months is around AED 12,500.
– Over the past 3 years, the average price has been gradually increasing: at the beginning of 2022 values were at the level of AED 8,700–8,900/m², during 2023 there was a smooth rise to 11,000+, and in 2024 a stabilization in the range of AED 10,600–14,300/m² across different quarters.
– Quarterly dynamics reflect the market recovery cycle after the pandemic followed by accelerated growth.

Al Thanyah Fifth (JLT), 1BR:
– Here, by contrast, the average price per m² over the last 12 months is higher at AED 14,500.
– The area has shown rapid growth over the past 3 years: from ~AED 10,000–12,000/m² in 2021–2022 to 14,000–15,400 AED/m² in 2023–2024.
– At both levels it is clear that the growth rate has been stronger for the area than for the specific building, but DUBAI ARCH TOWER has not fallen out of the overall trend.


4. Rental rate dynamics

DUBAI ARCH TOWER:
– Average annual rental rate per m² for all residential apartments over the last 12 months: AED 1,196/m².
– Quarterly data shows a steady upward trend after 2021: from AED 600–800/m² (2021–2022) to AED 1,000–1,200/m² (2023–2024).
– In recent quarters, values have stabilized slightly above AED 1,100–1,200/m².

Al Thanyah Fifth:
– Average annual rental rate: AED 1,097/m² over 12 months.
– The area also demonstrates consistent growth: from AED 600–700/m² in 2020–2021 to AED 1,050–1,150/m² in recent quarters.

Thus, the rental rate in DUBAI ARCH TOWER is slightly above the area average, which indicates strong tenant demand for this property.


5. “Building vs area” comparison: prices and rents

– Purchase price per m² (1BR, last 12 months): DUBAI ARCH TOWER — AED 12,492, area — AED 14,501.
– Rental rate per m² (last 12 months): DUBAI ARCH TOWER — AED 1,196, area — AED 1,097.

DUBAI ARCH TOWER is priced on the market with a 14% discount to the area’s average sale price, while rents are 9% above the area level. This combination makes the asset attractive for investors seeking a balance between entry price and yield.


6. ROI (investment yield) and fair price

Gross yield (brutto ROI):
– For the building: 9.6% per annum (1,196 / 12,492).
– For the area: 7.6% per annum (1,097 / 14,501).

Adjusting for transaction costs (7–8% on entry):
– Net yield (net ROI) for the building: around 8.9–9.0% per annum.
– Net ROI for the area (JLT): around 7.0–7.1% per annum.

Fair price range for an investor (1BR, with a target gross yield of 7–8% per annum):
– For DUBAI ARCH TOWER: 1,196 / 0.08 = AED 14,950/m² upper bound, 1,196 / 0.07 = AED 17,090/m² lower bound.
– The actual average transaction price (12,492) is significantly below the upper bound, giving the investor a yield buffer relative to typical targets.

Recommendation: the current market level for DUBAI ARCH TOWER is more than adequate for an investor targeting 7–8% and above, and also provides room for capital appreciation as the market strengthens.


7. Conclusions and 3–5 year outlook

DUBAI ARCH TOWER is a liquid, actively traded building in Jumeirah Lakes Towers, with proven tenant appeal and a high volume of transactions. Growth in both prices and rents in recent years has outpaced inflation and broadly tracked the overall market trends in JLT. The gap between the building’s price level and the area average creates additional upside potential as prices converge, while the elevated rental rate allows investors to count on yield spikes even with minor fluctuations in rates or unit sizes. Over a 3–5 year horizon, given the current dynamics in JLT, DUBAI ARCH TOWER can be viewed as an attractive investment for a balanced strategy between yield and liquidity.

Related Articles

Get more information

Look more

Request

Request