1. Definition of the area and data structure
Actual location: according to DLD, Island Park I belongs to the Al Khairan First area and is located within the Dubai Creek Harbour master project. Queries were filtered by the building name “Island Park I” and by 1-bedroom apartments.
There are over 50 purchase transactions for 1-bedroom units and around 30 current rental contracts, which allows for reliable conclusions at the level of the specific building (Island Park I) and for comparison with the Al Khairan First area.
2. Sales statistics and price dynamics
Over the past few years, the following activity has been observed for 1-bedroom apartments in Island Park I:
– The overwhelming majority of transactions were concentrated at the end of 2022 (42 sales in Q4 2022).
– In later quarters (2025–2026) there are isolated transactions (assignments or delayed transfers). For analysing the current market situation, it is reasonable to include only periods not later than the current date.
Average price per square metre dynamics for transactions in Island Park I:
– Q4 2022: 20,626 AED/m²
– Over the last 12 months (based on recent sales): 22,002 AED/m²
For comparison, in Al Khairan First (1-bedroom apartments):
– Price dynamics for 2020–2024: range of 12,700–26,900 AED/m² (upward trend).
– The average over the last 12 months for the area is higher — 25,891 AED/m².
This indicates that Island Park I is trading at a certain discount to the area average at the date of analysis (around -15%).
3. Rental dynamics and rental level
According to rental data (Island Park I), DLD has registered 30 contracts for different apartment types; there were no separate records for 1-bedroom contracts, but the average across the entire pool of units was:
– Average annual rent per m² over the last 12 months: 1,572 AED/m²
Quarterly distribution shows a steady increase:
– Q3 2025: 1,475 AED/m²
– Q4 2025: 1,616 AED/m²
– Q1 2026: 1,710 AED/m²
This positions the building in the premium segment of the rental market (the Dubai average is noticeably lower), and even within the master project and the area, Island Park I demonstrates strong rental dynamics, with rents gradually increasing.
4. Investment yield and fair price
Indicators for the last 12 months (for Island Park I):
– Average purchase price (AED/m²): 22,002
– Average rent (AED/m²/year): 1,572
Yield (ROI) calculation:
– Gross ROI for the building = 1,572 ÷ 22,002 ≈ 7.15%
Taking into account transaction costs on purchase (around 7–8% entry costs), the expected net yield (Net ROI) will be lower:
– Net ROI ≈ 6.6–6.7%
Comparison with the area: In Al Khairan First, the average price for 1-bedroom apartments over the same period is higher (25,891 AED/m²), while there is no rental data at the area level for 1-bedroom units (per DLD). Therefore, a correct ROI estimate for the area is not possible — we rely on building-level data.
Assessment of the fair “investment price” range
If we target a yield of 7–8% per annum, then at current rental levels the fair range for Island Park I is:
– Lower bound (8% ROI): 1,572 ÷ 0.08 = 19,650 AED/m²
– Upper bound (7% ROI): 1,572 ÷ 0.07 = 22,460 AED/m²
The current price level (22,002 AED/m²) is closer to the upper bound of the range, meaning that for an investor targeting a 7% yield, a purchase at the current price is justified, but there is no room for a premium to the market. The range is in line with expected returns and risk levels for Dubai Creek Harbour.
5. Liquidity and conclusions
Island Park I demonstrates stable buyer and tenant demand, confirmed by a significant number of transactions and continuous rental registrations. DLD data indicate a rising rental trend, strong liquidity and a moderate (around 7%) return for investors. The market in this segment is balanced, but the current price range offers investors only limited upside in yield without an additional discount to the market.
Over the next 3–5 years, Island Park I appears to be an attractive asset within the premium segment of the area — provided current rental rates are maintained and buyer demand remains stable.
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