ROI analysis of apartment in Karma: DLD data and real deals

1. Definition of the area and data structure

Actual location: according to DLD, the Karma building is located in Wadi Al Safa 2, within the Liwan1 master project. This is confirmed by the presence of transactions in the DLD database with exactly this geographic positioning.

2. Market activity and liquidity

For 2-bedroom apartments (2 b/r) in the Karma building, 77 transactions have been recorded. The transaction frequency over recent quarters is high: the main volume was completed over the last two years. This indicates good liquidity for this segment of the building in the sales market.

3. Price dynamics and levels over 3–5 years

Average price per square meter for 2-bedroom apartments:
– Over the last 12 months in the Karma building: 10,794 AED/m².
– Within the Liwan1 master project: 10,127 AED/m².
– Across Wadi Al Safa 2: 12,878 AED/m².

Quarterly dynamics show:
– In 2020–2022, prices in the area were at 4,000–5,000 AED/m², with a sharp increase starting from 2023.
– In 2023: growth to 6,500–10,000 AED/m² across the area and up to 10,500–10,800 AED/m² over the last year in the building.

Currently, the price level in the Karma building is slightly above the master project average, but almost 20% below the area average. It can be concluded that Karma is trading at a discount to the average price in Wadi Al Safa 2.

4. Rental and yield analytics

According to DLD data for the last 12 months, there have been no valid long-term rental contracts for 2-bedroom apartments recorded in the Karma building, the Liwan1 master project, or the Wadi Al Safa 2 area (after filtering by all required parameters — type, period, area, and amount).

Therefore, it is not possible to objectively calculate the average rental rate per m² and the final yield (ROI) for investment assessment based on official DLD data. It is also impossible to calculate a fair range of “investment-justified prices” and compare it with the current market level. Any yield estimates without recent confirmed DLD rental rates in this case would be speculative.

5. Summary and conclusions for the investor

– The Karma building demonstrates high liquidity and a very active resale market for 2-bedroom apartments.
– There has been strong price growth for 2-bedroom apartments in the area over the past 2 years; the current level for Karma is 10,800 AED/m² (slightly above comparable units in Liwan1, but significantly below the area average).
– At the moment, the building is trading at a discount to the average price in the area, which may indicate a more affordable entry point for buyers.
– Direct rental and ROI calculations are not possible due to the absence of recent long-term rental contracts in the public DLD database. It is recommended to analyze the asset primarily for future resale, or to factor in the risk of lacking transparent rental data if the investor is targeting a buy-to-let strategy.
– The outlook for Wadi Al Safa 2 and the Liwan1 master project over a 3–5 year horizon is assessed as positive in terms of price growth and demand for apartments; however, rental yields should be evaluated with regard to the absence of current public DLD data.