ROI analysis of apartment in FLOAREA RESIDENCE: DLD data and real deals

1. Area definition and data structure

Actual location: According to the open DLD database, the FLOAREA RESIDENCE building is located in Al Barshaa South Third, master project Arjan, project Floarea Residence. Filtering of DLD data was carried out using these exact names.

2. Transactions and liquidity

For 2-bedroom apartments in FLOAREA RESIDENCE, 41 sale and purchase transactions have been recorded (data for the “2 bedrooms” type, residential stock only, apartment units only).
Over the past 12 months, the building has seen a significant number of transactions on average, indicating high liquidity for this new development, typical for projects in the final stages of completion.

Over the last year, the average transaction price for 2-bedroom apartments in the building amounted to 10,659 AED per m². This is a calculated value based on all relevant transactions of this type over the past 12 months.

For the wider Al Barshaa South Third market, the average price for comparable properties over the last 12 months was 14,634 AED per m², meaning that apartments in this building are currently selling at a noticeable discount (around -27% versus the district average).

3. Price and transaction dynamics for the building and the district

From late 2023 to date, the average price per m² in the building has shown a gradual increase:

Q4 2023: 9,173 AED/m²
Q1 2024: 10,378 AED/m²
Q3 2024: 12,183 AED/m² (based on a single transaction)

For Al Barshaa South Third, a stable upward trend in the average price per m² has been recorded since 2020, from around 7,600–8,700 AED at the beginning of 2020 to 13,400–15,600 AED/m² in 2024–2025.

The building’s average level has remained below the district average since the first transactions, which is typical for new projects during the active primary sales phase. However, it is important to note the convergence towards the district level, which is potentially positive for future price growth.

4. Rental market analysis (based on DLD data)

For FLOAREA RESIDENCE and specifically for 2-bedroom apartments, there are no confirmed rental contracts in the DLD database (neither for the building nor for the Arjan master project). Even at the district level, the data for this specific unit type proved insufficient.
Nevertheless, across Al Barshaa South Third more than 53,000 rental contracts for residential apartments (of various layouts) have been recorded since 2020, with a steadily increasing number of closed deals in each period, confirming strong rental demand in the location.

The average rental rate over the last 12 months in the district amounted to 950 AED/m² per year (calculated from valid contracts for all apartments, without size breakdown). The dynamics show a consistent quarterly increase — from 614 AED/m² at the beginning of 2020 to over 1,000 AED/m² by early 2026 (based on current contracts), which indicates strong investment potential for the location.

5. ROI and fair price

ROI can currently be calculated only at the district level (the building is not yet represented in DLD rental contracts at the time of analysis).

Average purchase price over the last 12 months in the district: 14,634 AED/m²
Average rent in the district: 950 AED/m²/year

Gross ROI in the district (rental yield to purchase price): around 6.5% per annum.
The actual current selling price in the building is noticeably below the district level, which may provide a yield premium for a future investor (subject to the project’s transition from off-plan to handover and confirmation of strong rental levels).

Adjusting for net yield (taking into account entry costs of around 7%) gives a reference ROI_net of about 6% per annum for purchases at the current average district price.

A fair price range for an investor targeting a 7–8% annual ROI at the current rental level (950 AED/m²/year):

upper bound: 13,570 AED/m² (at 7% ROI)
lower bound: 11,875 AED/m² (at 8% ROI)

The current average district price is slightly above the upper bound of the “investment-fair” range, while the level in FLOAREA RESIDENCE is significantly lower, which increases the potential attractiveness of a purchase, all else being equal.

6. Overall conclusion

FLOAREA RESIDENCE currently demonstrates high sales liquidity, a notable (but not yet closed) gap versus the district price in favour of the buyer, and favourable rental cost dynamics in the location. However, as of the analysis date, there are no 2-bedroom units in this specific building registered as leased under DLD contracts, so it is not yet possible to calculate an exact yield for a purchase — the ROI used is based on the district average. The location is traditionally in demand, the number of rental transactions is growing, and the average market yield at current prices is slightly below the typical investment benchmark (7–8% per annum). At the same time, an early-stage purchase in this building may deliver yields above the district average due to the current price discount.