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

1. Area definition and data structure

Actual location: According to open DLD data, FLOAREA RESIDENCE is located in Al Barshaa South Third, within the Arjan master development. Matches in the database using the building name filter are complete, so the analysis is carried out for the entire building (FLOAREA RESIDENCE). The sales and rental data are sufficient: 345 sale transactions and 135 rental contracts have been recorded specifically for this building.

2. Sales volume and dynamics

The apartment market in FLOAREA RESIDENCE is active, with the overwhelming majority of transactions recorded over the past few years (2023–2024 account for the main volume of sales).

The highest number of transactions occurred in the last 2 years: 91 and 110 deals in 2023 and 2024 respectively.
The average price per m² has been moving in waves: in Q4 2023 deals were recorded at an average of 12,440 AED/m², in Q1 2024 at around 12,600 AED/m², and then the dynamics become more scattered (on average within the 11,000–15,000 AED/m² range, and higher for some individual units).
Over the last 12 months: the average achieved sale price was 12,963 AED/m² (based on 137 transactions in the building), with a range from 2,731 to 19,307 AED/m².

Across Al Barshaa South Third as a whole over the same period, the average price is higher: 15,301 AED/m² (based on 4,176 transactions).

3. Rental dynamics and rate distribution

For FLOAREA RESIDENCE, strong rental demand has been observed since the end of 2023:

Over the last 12 months, 135 lease agreements have been signed, with an average achieved rental rate of 1,326 AED/m²/year for the building as a whole (accurate calculations are only possible for buildings with confirmed DLD contracts).
By unit type: studios are rented on average at 1,482 AED/m², one‑bedroom units (1BR) at 1,194 AED/m², and two‑bedroom units (2BR) at 1,054 AED/m².
For comparison: across Al Barshaa South Third the average annual rent was 948 AED/m², which is noticeably lower than in this building. This indicates stable demand and a possible product or micro‑location premium for the complex.
Quarterly dynamics for the building: there were no ordinary drawdowns; from mid‑2024 to early 2025 the rate has remained in the 1,226–1,579 AED/m²/year range, but the sample size in the initial quarters is small, with the main volume falling in Q3–Q4.

4. Liquidity and demand comparison

The data confirm high liquidity and strong interest in FLOAREA RESIDENCE from both buyers (many deals in a short period) and tenants (a stable flow of new contracts and the highest average rate in the local market).

5. ROI and fair price for an investor

The actual market yield (ROI) for the building, based on the average purchase price (12,963 AED/m² over the last 12 months) and average rent (1,326 AED/m²/year), is 10.2% per annum for the building.
For the district, the comparable calculated yield is only 6.2% (948 AED / 15,301 AED).
After adjusting for all transactional costs (around 7%), the net ROI (ROI_net) for the building is estimated at roughly 9.5% per annum.
The fair price range for an investor targeting a net yield of 7–8% per annum is: 1,326 / 0.08 = 16,575 AED/m² (upper bound), 1,326 / 0.07 = 18,943 AED/m² (maximum at 7%). Current deals are closing below this level — therefore, the investment entry is driven by a premium to the district, but the building itself offers returns significantly above the Al Barshaa South Third average. The discount to the district is substantial (purchase price is below the typical level for the area while rental rates are high).

6. General conclusions and asset outlook

FLOAREA RESIDENCE stands out with extremely high yields for the district and high liquidity in both segments — sales and rentals.
A competitive rental rate (around 40% above the district average) combined with relatively low entry prices creates favourable conditions for investors, especially those focused on income.
The market outlook for the next 3–5 years is positive: intra‑district premiums may be sustained, and the risk of rental decline is minimal given the current demand dynamics.
For potential buyers, the residence appears to be an attractive choice for income‑driven investment with moderate market risk, as well as for capture strategies aimed at long‑term capital appreciation.