ROI analysis of apartment in LADY RATAN MANOR: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to DLD, the building LADY RATAN MANOR is located in Al Warsan First, master project International City Phase 1. Database queries confirm this: sales and leases are registered exactly with this area and master project name.

The data for the building is sufficiently detailed: 125 sale transactions, 465 lease contracts, and for Al Warsan First as a whole — over 14,000 sales and 167,000 lease contracts over the entire history. This allows for accurate aggregation at all key levels and confirms stable demand.

2. Deal structure and dynamics

Liquidity. LADY RATAN MANOR shows a stable flow of transactions for 1-bedroom apartments (1 b/r) — from 2 to 8 deals per quarter, and even more in some periods. This confirms the asset’s liquidity and its active presence on the resale market, rather than just isolated transactions.

Building dynamics over 3–5 years. Average price per square metre for 1BR in LADY RATAN MANOR:

– In 2020–2021: 4,500–6,500 AED/m².
– In 2022–2023: 5,100–6,500 AED/m², with a gradual upward trend.
– 2024: 6,100–7,400 AED/m².
– Over the last four quarters (current as of today): the average is 7,800 AED/m².

There is a clear upward trend: growth from slightly above 5,000 AED/m² to above 7,000 AED/m² in the current market. This reflects both the overall market trend and the popularity of the complex within its segment.

3. Comparison with the area

Across Al Warsan First, the average price per m² for comparable units (apartments, 25–100 m²) over the last 12 months is 7,290 AED/m². Thus, LADY RATAN MANOR is slightly more expensive than the area average: the premium is about 7% (7,800 vs 7,290 AED/m²). Notably, in some previous quarters the building’s price levels were closer to, or even slightly below, the market average, but by 2024 a stable premium to the area has formed.

4. Rental dynamics

According to DLD, for the “1 bedroom” type in this building, the confirmed average rental rate over the last 12 months is 707 AED/m² per year (a general building-wide filter was used, as the breakdown by bedroom count lacked sufficient data). Over recent years, the average rental rate has been consistently increasing: from 400–550 AED/m² in 2020–2022 to 630–780 AED/m² in 2024–2025. Quarterly dynamics also indicate a steady rise.

5. ROI and investment yield

Current inputs for calculations (DLD data):

– Average price per m² over 12 months for the building: 7,800 AED/m²
– Average price per m² over 12 months for the area: 7,290 AED/m²
– Average rent for the building (annualised): 707 AED/m²

Gross yield (ROI):

– For the building: 707 / 7,800 ≈ 9.1% per annum before expenses.
– For the area as a whole: 707 / 7,290 ≈ 9.7%, if we apply the same rental rate (since the area benchmark is comparable given the similar price level and sample structure).

Net yield estimate (ROI_net): after adjusting for upfront acquisition costs (around 7% of the transaction amount — commissions, fees, vacancy), the actual investor yield will be around 8.4–8.5% for the building (9.1/1.07 ≈ 8.5%).

Indicative fair investment price range (for a target yield of roughly 7–8% per annum):

– For an 8% target: 707 / 0.08 = 8,840 AED/m²
– For a 7% target: 707 / 0.07 = 10,100 AED/m²

The actual average price of recent deals (7,800 AED/m²) is 12–23% lower than the notional price that would give an investor only 7–8% per annum. This means that at current price levels (and actual rental contracts), the purchase yield is significantly above the typical market investment benchmark.

6. Key conclusions and recommendations

– The building’s liquidity is confirmed by transaction and rental volumes; buying or selling does not pose a problem.
– Price dynamics show growth in recent years, with a confident move above 7,000 AED/m².
– In terms of rental rates, LADY RATAN MANOR is within the area range, delivering a high gross yield for investors (9% and above), outperforming average market expectations.
– The building is trading with a small price premium to the area, likely reflecting a better reputation or more attractive position within International City, while yields remain at an appealing level.
– For a buyer targeting a 7–8% annual yield, the fair price range is noticeably higher than actual achieved deal levels: there is no need to seek deep discounts to the market.
– The building and the area remain suitable for rent-focused investments on a 3–5 year horizon; there are no clear signs of overheating or a bubble.