1. Definition of the area and data structure
Actual location: according to DLD, Joya Blanca Residences is located in Al Barshaa South Third, master project Arjan. Studio apartments (0BR) are registered in the database as “studio”/”Studio”.
The DLD database for Joya Blanca Residences shows 518 sales transactions and more than 400 rental contracts (404 rental deals for studios). Both data sets allow for a detailed analysis of the building itself as well as a comparison with the wider area (Al Barshaa South Third).
2. Market dynamics and transaction frequency
Studio sales started actively in 2021, with the peak of primary registrations in 2021. Thereafter, between 10 and 30 studio transactions per year have been recorded annually. Overall, the transaction volume for the building is average for contemporary Arjan developments, with liquidity adequate for a new complex.
3. Studio purchase prices (dynamics and current level)
Average price per square metre for studios in Joya Blanca Residences:
– 2021: 8,950 – 9,300 AED/m².
– End of 2022: 10,500 – 10,800 AED/m².
– In 2023 prices moved to 11,500 – 13,000 AED/m² (by quarter).
– Over the last 12 months (July 2023 – June 2024): the average studio sale price was 14,657 AED/m².
For comparison, studios in Al Barshaa South Third over the same period were sold at an average of 16,018 AED/m² — meaning the building is trading at roughly an 8.5% discount to the area average for studios.
The chart shows a steady increase in the price per square metre in the building (around +40% over three years), and a sharp jump in the last four quarters, which indirectly indicates a transition of the complex from a predominantly off-plan status to a more mature handover/resale phase.
4. Rental rates for the building and the area
The DLD database records a large number of rented studios in the building — since autumn 2022, each quarter has between 10 and 80 rental contracts. This confirms stable rental demand for studios.
Average annual studio rental rates (for the building, only actual DLD contracts, calculated in AED/m²/year):
– Q4 2022: 978 AED/m².
– In 2023: steady growth from 1,055 to 1,238 AED/m²/year, followed by a slight correction by year-end.
– In 2024 the weighted average rate has already reached 1,215 – 1,203 AED/m², and over the last 12 months the average was 1,422 AED/m².
For studios across Al Barshaa South Third, the rate over the last 12 months is 1,117 AED/m²/year. Thus, the building rents at about a 27% premium to the area average.
5. Yield comparison and calculation
For studios in Joya Blanca Residences, based on DLD data for the last 12 months:
– Average sale price: 14,657 AED/m².
– Average annual rent: 1,422 AED/m².
A rough ROI (annual income before expenses) is about 9.7% (1,422 / 14,657). The area average ROI is 7.0% (1,117 / 16,018).
Taking into account transaction costs (around 7% on top of the purchase price), the expected net ROI for the building is about 9.1% (1,422 / (14,657*1.07)). For the area, it is around 6.5%.
6. Fair price range for a target yield of 7–8%
If we focus on a typical target investor yield of 7–8% per annum, the fair purchase price for a studio in Joya Blanca Residences, given current DLD rental levels, should be:
– At 8% ROI: 1,422 / 0.08 ≈ 17,775 AED/m².
– At 7% ROI: 1,422 / 0.07 ≈ 20,314 AED/m².
The current market level (14,657 AED/m²) is noticeably below this “investment price” fair range when benchmarked against actual rents — an upside to market is possible; a discount in this context is not required.
7. Liquidity and investor takeaways
Joya Blanca Residences is a new, actively traded asset with pronounced rental demand for studios (more than 400 active rental contracts for studios alone). On the sales side, there has been a stable increase in the price index over three years, reaching a level slightly below the area average, which creates opportunities both for long-term rental strategies and for capital-gain-driven resales. Actual studio yields based on DLD data exceed the area average by more than 2 percentage points and fit well into an income-generating asset strategy.
The asset is suitable for an investor focused on a stable rental cash flow and the option to exit with profit against the backdrop of positive dynamics in Arjan – Al Barshaa South Third. The substantial gap between current market pricing and the “fair price range” at a 7–8% ROI supports the case for further capital appreciation potential in the complex.
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