1. Definition of the area and data structure
Actual location: According to DLD, the FIVE LUXE building belongs to the Marsa Dubai district. All further benchmark comparisons are made specifically against this district.
Data volume availability: The DLD database records 171 sale transactions for 1-bedroom apartments (1 b/r) in FIVE LUXE, as well as 12 rental contracts for this project over the last 2 years. The dynamics cover the period from the end of 2021 to the present, which is sufficient for a statistical assessment of both the building and the district.
2. Sales dynamics and distribution
Transaction frequency: There is consistently strong activity in sales of 1-bedroom apartments, with peak demand in 2022 (especially Q1 — up to 58 transactions), followed by stabilization at 4–14 transactions per quarter. The last 12 months have also seen substantial sales, confirming the liquidity of these units on the primary and, likely, on the secondary market.
Average price per square meter dynamics (1-beds, FIVE LUXE):
– End of 2021: average price around 41,000 AED/m².
– In 2022 the average jumped sharply to 47,000–61,000 AED/m² (in some quarters).
– In 2023 volatility decreased with a moderate downward trend, averages at 40,000–51,000 AED/m².
– 2024: quarterly range from 38,000 to 51,000 AED/m² (12‑month average — 43,826 AED/m²).
For comparison, in Marsa Dubai the average price per square meter for apartments with similar classic parameters was 21,000–29,000 AED/m² during 2023–2025. Over the last 12 months in the district: 26,158 AED/m².
Conclusion: FIVE LUXE consistently trades at a 60–70% premium to the district’s average for residential apartments.
Distribution by size and price: The main format of sold units is 1-bedroom apartments with an area of 73–114 m². Primary market transaction values most often exceed 3,500,000 AED, with an average price per square meter of 43,000–52,000 AED and above.
3. Rental market dynamics and structure
Rental data: For FIVE LUXE itself, valid DLD rental data (12 contracts) is available only for all apartment types combined; there is no separate statistics for 1-bedroom units (the number of contracts for them is zero). This is common for new projects — ownership is dispersed, and sales progress faster than long-term lease contracting.
Average annual rental rate per m² in the building (all apartment types, last 12 months): 2,434 AED/m².
For Marsa Dubai (district): 1,318 AED/m².
Rental dynamics in the building look extremely volatile (quarterly median values range from 421 to 5,692 AED/m²; some periods may be driven by rare short-term or VIP contracts). In Marsa Dubai, quarterly medians in 2023–2025 are 1,200–1,350 AED/m², with steady growth since 2020 (from 700 to 1,300+ AED/m²).
4. Key investment metrics: price, income, yield
Average sale price per m² over the last 12 months in FIVE LUXE: 43,826 AED/m² (building, 1-beds).
Average district price for the same period: 26,158 AED/m².
Average rental rate per m² in the building over the last 12 months (all apartments): 2,434 AED/m².
Average rental rate in the district over 12 months: 1,318 AED/m².
Gross yield (ROI) when buying at the average price per m²:
– Building: 2,434 / 43,826 ≈ 5.6% per annum (gross).
– District: 1,318 / 26,158 ≈ 5.0% per annum (gross).
Taking into account all initial costs (DLD fees, agency commission, vacancy, etc. — in total +7–8% to the entry price), net yield for FIVE LUXE falls to around 5.2–5.3% per annum, and for the district — about 4.6–4.7% per annum as of today.
5. “Fair investment price range” (ROI benchmark 7–8%)
Based on the average DLD-confirmed rental rate for the building, to achieve a 7–8% annual yield, the price per m² should fall within the following range:
– For FIVE LUXE (building): 2,434 / 0.08 ≈ 30,400 AED/m² (for an 8% yield), 2,434 / 0.07 ≈ 34,771 AED/m² (for 7%).
The actual current secondary price in the building (43,826 AED/m²) is far above this “income-based” range if other factors are not considered. The discount required to the current market price to reach a 7–8% gross ROI is 20–30% versus recent transaction levels.
For the district: the fair price range for a 7–8% yield is 16,475–18,828 AED/m², and given the current district average (26,158 AED/m²), the premium is also substantial (which means Marsa Dubai as a district is overpriced relative to rental income — or remains resilient to internal yield constraints due to its “lifestyle” factor).
6. Liquidity, demand and outlook
FIVE LUXE shows excellent market liquidity: high sales volumes at launch (2022), followed by a stable transaction flow. Marsa Dubai is a mature and one of the largest prime residential markets, with a high volume of both sales and rentals.
However, the rental market in FIVE LUXE itself is less developed: the number of contracts is small, and average rates are above the district level, which may partly be explained by short-term leasing or bespoke rental arrangements (it is likely that more owners in the building prefer short-term lets rather than classic long-term leases).
The “building vs district” comparison shows a persistent price premium — both in sales and in rentals. This is convenient for speculative exits on waves of demand, but does not always allow investors to achieve the 7–8% yields often stated in marketing materials when buying now at current prices.
7. Investor conclusions on a 3–5 year horizon
– FIVE LUXE is a premium building with high liquidity at launch and sustained demand.
– A substantial price and rental premium versus Marsa Dubai is confirmed by DLD statistics, but investment yield (net ROI) at current prices is only about 5–5.3% per annum, below the popular 7–8% investor benchmark.
– For a “buy-to-hold and rent long term” strategy, the building delivers clearly lower yields than the headline figures, and requires either waiting for a market correction in entry prices or focusing on short-term rentals (where rates are higher, but robust DLD statistics are lacking).
– For long-term investors or end-users, the asset’s premium positioning is preserved, but buying at list price without a discount for the sake of long-term rental income is less rational at current levels.
– If the goal is long-term letting or high yield, the optimal purchase price benchmark would be in the 30,000–34,500 AED/m² range (then ROI aligns with the 7–8% target). Market liquidity in the building for this scenario is still insufficient — the premium to the district remains.
Related Articles
- How to sell a home in Dubai in DAMAC Maison Dubai Mall Street (The Signature) – analysis 2026
- How to sell an apartment in Dubai in Residences 15 – analysis 2026
- How to sell a home in Dubai in Sunset Bay By Imtiaz – analysis 2026
- How to sell an unit in Dubai in Palm Jebel Ali – Frond O – analysis 2026
- ROI analysis of apartment in SHAMAL RESIDENCES 2: DLD data and real deals
