ROI analysis of apartment in FIVE LUXE: DLD data and real deals

1. Definition of the district and data structure

Actual location: according to DLD, the FIVE LUXE building belongs to the Marsa Dubai district. This district and building name are used in the database for filtering.

Category of properties analyzed: studio apartments (0 bedrooms), sales and rentals (Residential, Flat/Studio). A filter for studios (studio/0BR) is applied to keep sales and rental data comparable.

2. Deal volume and structure for the building

For the FIVE LUXE building, the DLD database records 560 transactions between 2021 and 2025, with peak activity in 2022–2024. Deals are evenly distributed by quarter, indicating stable interest in the project at different stages of construction and handover.

3. Price dynamics for studio apartments

The average price per square metre for studios in FIVE LUXE has shown notable fluctuations:
– In late 2021 – early 2022 there was a peak at 52,000–55,000 AED/m².
– In 2023 prices declined to 43,000–48,000 AED/m², after which they rose again to 53,000–56,000 AED/m² in 2024.
– Over the last 12 months, the average transaction price was 46,968 AED/m², keeping FIVE LUXE significantly above the district benchmark.

For comparison: across Marsa Dubai, the average price for studios over the last 12 months is substantially lower — 33,122 AED/m². Thus, FIVE LUXE trades at a premium of roughly 42% to the district average for studios, reflecting its status as a new flagship asset.

4. Rental market dynamics

For the FIVE LUXE building itself, no active rental contracts for studios were found in the DLD database (most likely, the building has only just been handed over and rental contracts have not yet been registered).

Across Marsa Dubai there are over 1,200 valid studio rental contracts over the last 12 months, which allows for a reliable assessment of rental levels.
– The current average annual rental rate for studios in the district is 1,567 AED/m² per year.
– Over the past three years, rental rates have shown steady growth: in 2022 the average rate was 1,035–1,179 AED/m², in 2023 it had already reached 1,293–1,380 AED/m², and by 2024 the average level rose to around 1,600 AED/m².

5. ROI and “fair” price for an investor

– Actual purchase price over the last 12 months in FIVE LUXE (studios): 46,968 AED/m².
– Actual average annual rent for studios in the district: 1,567 AED/m².

This gives an indicative gross ROI for studios in Marsa Dubai:
– ROI_brutto_area ≈ 1,567 / 33,122 ≈ 4.7% per annum.
– ROI_brutto_home cannot be calculated, as there are still no registered rental contracts for FIVE LUXE itself.

Adjustment to net yield (accounting for 7% entry costs): ROI_net_area ≈ 4.4% per annum.

Assessment of the fair price range for an investor targeting a 7–8% annual yield (based on district studio metrics):
– At a rate of 1,567 AED/m², the “investment fair” purchase price is in the range of 19,588–22,386 AED/m².
– The current average price in the district (33,122 AED/m²), and especially in FIVE LUXE itself (46,968 AED/m²), significantly exceeds this range.
– To achieve a 7–8% annual yield at current rental levels, a substantial discount to the market is required (at least –34% even from the district average price, and –58% from the FIVE LUXE level).

6. Conclusions on liquidity and investment potential

– FIVE LUXE is a highly sought-after project with strong demand at both launch and handover stages; its premium pricing is consistently fixed above the district average.
– Marsa Dubai is characterised by high transaction turnover and steady growth in studio rental rates.
– At current price levels in FIVE LUXE, the potential yield for an investor focused on rental income will be noticeably below the typical target return (7–8%): the actual ROI barely reaches 4.7% for the district and is likely to be even lower for this specific asset due to the high purchase price.
– FIVE LUXE is a liquid, premium product for end-use or resale; however, at current price levels its rental yield cannot be considered competitive as a strategic investment asset compared with broader market and district alternatives.