1. Definition of the area and data structure
According to DLD, the K1 building belongs to the Wadi Al Safa 5 area, within the Dubai Land Residence Complex master project. The building and project names fully match the information in the DLD database. The analysis is carried out for two-bedroom apartments in K1 where possible, and for rentals — for all apartments in this building (and further, for comparison — for the wider area).
2. Transaction statistics and price dynamics
The DLD database records 145 transactions with Flat-type apartments in K1 over recent years. The main volume of transactions occurred in 2022–2024, with Q3 2022 standing out in particular (54 deals). Activity remained stable: in 2023 there were 3–9 deals per quarter, and a similar pattern continues in 2024.
Average transaction price per square metre:
— Over the last 12 months for K1: 8,546 AED/m².
— For comparison, for Wadi Al Safa 5 over the same period: 14,096 AED/m².
Quarterly price-per-metre dynamics for K1:
— In 2022–2023 the average level was around 7,000–8,000 AED/m² with some fluctuations.
— In 2024 there was an increase to levels above 9,000 AED/m² (Q4 2024: 9,409 AED/m²).
— In Wadi Al Safa 5 in 2024 prices reached 12,000–15,000+ AED/m², noticeably higher than in K1.
3. Rental statistics and rate dynamics
For K1, 312 residential lease contracts have been recorded, so the rental data is representative.
Average annual rental rate per square metre:
— Over the last 12 months for K1: 833 AED/m².
— For Wadi Al Safa 5: 715 AED/m².
Quarterly rental rate dynamics for K1:
— Growth from 650–700 AED/m² in 2023 to 800–840 AED/m² in 2024–2025.
— In the wider area the growth is less pronounced: from 500–585 AED/m² in 2023 to 670–750 AED/m² in 2024–2025.
4. Comparison, ROI and investment attractiveness
The current average transaction price in the building (8,546 AED/m²) is significantly below the area average (14,096 AED/m² over 12 months), indicating that K1 is positioned as a budget or affordable option within the location.
The rental rate in the building is close to the upper end of the local market. Accordingly, the potential gross ROI for K1 is:
— For the building: ~9.7% per annum (833 / 8,546).
— For the area: ~5.1% per annum (715 / 14,096).
Taking into account acquisition costs (around 7% of the price: DLD, broker, registration), the net ROI for the building is approximately 9.7% / 1.07 ≈ 9.1% per annum. This is noticeably above the standard benchmarks for the area and is explained by the combination of relatively low purchase prices and high rental yields.
Estimated fair price range for an investor targeting a 7–8% annual yield:
— With a rental rate of 833 AED/m², the fair entry range is 10,400–11,900 AED/m².
— The actual market level for K1 is currently 18–28% below this “investment” estimate, meaning sellers are offering investors a high yield potential without the need for additional discounting.
5. Liquidity and outlook
K1 has high liquidity: more than 145 transactions over 3 years, with 10–20 deals every half-year. Lease contracts are actively concluded, and rental demand remains strong (312 contracts).
Outlook for an investor: at current purchase and rental levels, an apartment in K1 delivers a yield above the area’s market average. Given the upward trend in rental rates and the potential for price growth in the affordable housing segment, K1 can be viewed as an attractive opportunity for conservative, income-focused investors.
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