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1. Definition of the area and data structure
Actual location: Lagoon Views at District One is located in Al Merkadh, within the master development Mohammed Bin Rashid AL Maktoum City -District -1 Community (District One).
In this analysis, the asset is defined as all DLD records filtered by the building name Lagoon Views at District One and 2-bedroom (2BR) apartments. All further comparisons by area and unit type are based on actual DLD data.
Since 2022, 26 sales transactions with 2BR apartments in this building have been registered, while no rental contracts have been found either for the building itself or for the District One master project. For the wider Al Merkadh area, however, there is a valid and extensive rental dataset.
2. Transaction volume and dynamics in Lagoon Views at District One 2BR
This building is still in the handover/sell-out phase (there are transactions dated up to 2025). The main wave of deals occurred in 2022 and early 2024, which is typical for new projects.
Average price per square metre for 2BR units in the building (by quarter):
- In 2022 — consistently in the range of 20,000–20,400 AED/m².
- In 2023 (Q1 — a slight decline to 18,087 AED/m², with incomplete data).
- In 2024 — growth to 21,400–22,700 AED/m² and locally up to 26,900 AED/m² (one transaction in Q1 2025), while the 12‑month average stands at 23,390 AED/m².
The dynamics allow for peak sales, but the average level has been steadily rising from the initial period.
3. Comparison with Al Merkadh
In Al Merkadh, the average price of 2BR apartments over the last 12 months is significantly lower: 20,227 AED/m². Over the same period, the quarterly averages were in the 18,950–21,000 AED/m² range (2024).
Thus, Lagoon Views at District One 2BR units are selling at a 15–16% premium to the average 2BR market level in Al Merkadh. This reflects a mark-up for a new product and the District One brand.
4. Rental rates
No rental data has been recorded for the building itself or for the master project so far — either handover and move‑ins have not fully started yet, or leasing is currently taking place outside formal DLD registration.
For Al Merkadh as a whole, there is a robust rental dataset for apartments over the last 12 months:
- Average rent: 1,547 AED/m²/year (across all residential contracts).
- For 2 bed rooms+hall units — 1,388 AED/m²/year across 1,585 contracts (i.e. high volume and reliability).
Area‑wide dynamics:
- 2020: 600–650 AED/m²/year.
- 2022: growth to 1,120 AED/m²/year.
- 2023: 1,150–1,350 AED/m²/year.
- 2024: further growth to 1,340–1,550 AED/m²/year (recent quarters).
The rental market in the area has been growing steadily for the second year in a row.
5. Yield and “fair” price range for an investor
To assess yield, we can only use the area benchmark for 2BR apartments (as there are no such rental contracts for the building itself).
- Current average sale price for Lagoon Views 2BR — 23,390 AED/m².
- Average rent for 2BR in the area — 1,388 AED/m²/year.
Roughly, the gross yield is: 1,388 / 23,390 ≈ 5.9% per annum for the building (again, this already factors in the premium to the market).
Typical upfront transaction costs are about 7% of the entry price, so the net yield will be around 5.5%.
For the wider 2BR market in the area (price level 20,227 AED/m²), a rent of 1,388 AED/m² delivers an ROI of 6.9%, which is closer to the “7–8% for an investor” target range.
If we target a 7–8% yield, the “fair” price for a new development (based on current area rents) lies in the 17,350–19,830 AED/m² range. Accordingly, Lagoon Views at District One 2BR units are selling at an 18–34% premium to the level typical for income‑focused investments, and purchases at these prices are justified only when prioritising quality, location and long‑term potential rather than current yield.
6. Liquidity and outlook
Transaction volumes for both sales and rentals in the area are very high, and demand remains strong. Despite the lack of rental data specifically for Lagoon Views, tenants in Al Merkadh are actively seeking new apartments; it is likely that both supply and demand for rentals in District One will increase over the next 1–2 years.
The average price per m² in Lagoon Views is growing at an outpacing rate — the premium to the area exists and is being maintained.
From an investor’s perspective, the asset is more geared towards capital preservation and prestigious living than towards maximising current rental yield.
7. Conclusion
Lagoon Views at District One 2BR is a premium product with stable purchase demand, but at the moment its potential rental yield is lower than that of the area’s mass‑market stock. With a target yield of 7–8%, the building’s actual market price appears overvalued by roughly 15–30%. An investment purchase here is reasonable only if you are betting on further growth in rents and capital values and/or prioritising own use and location over immediate income.
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