ROI analysis of apartment in LAGUNA TOWER: DLD data and real deals

1. Definition of the area and data structure

Actual location: according to the DLD database, LAGUNA TOWER is unequivocally classified as being in Al Thanyah Fifth, within the master project Jumeirah Lakes Towers (JLT).

Data volume and structure:
– For studio sales (0BR, studio, 0 b/r) in LAGUNA TOWER, transactions have occurred almost every quarter over the past 5 years.
– For studio rentals, data is also available, including for the last 12 months.

2. Sales: transactions, price dynamics and comparison with the area

Transaction frequency and dynamics for LAGUNA TOWER (studios):
– Over the past 3 years there has been a stable flow of studio transactions.
– The average price per m² in LAGUNA TOWER for studios over the last 12 months is 14,740 AED/m².
– By comparison, the current average price per m² for all apartments in JLT (Al Thanyah Fifth) is 17,320 AED/m².
– Thus, LAGUNA TOWER is noticeably cheaper than the current average market level in JLT (a −15% difference).
– In 2020–2021, studio transactions in the building were at 6,800–7,000 AED/m²; in 2022–2023 prices increased to 8,400–10,300 AED/m²; in 2024–2025 there was a significant jump to 14,500–16,000 AED/m².
– At the same time, the average price across JLT (all quarters) rose from 7,700 AED/m² at the end of 2020 to 17,000–18,500 AED/m² by 2024.

Conclusion: studios in LAGUNA TOWER remain a liquid and more affordable format against the backdrop of a growing JLT market, but they trade at a discount to the area average.

3. Rentals: rate levels and dynamics

– The building has real, current rental rates available for studios.
– The average annual rental rate per m² for studios in LAGUNA TOWER over the last 12 months is 1,185 AED/m².
– For JLT (Al Thanyah Fifth), the average rent for apartments (including studios and larger units) over the same period was 1,133 AED/m².
– In dynamics, studio rents in LAGUNA TOWER are growing: from 600–700 AED/m² (2020–2021), through 900–1,100 AED/m² (2022–2023), to 1,100–1,400 AED/m² in 2024–2025.
– The JLT area for apartments follows a similar trajectory (from 620 AED/m² to 1,160 AED/m²).

Conclusion: the rental level for studios in LAGUNA TOWER is comparable to the wider area and has slightly outperformed it over the last 12 months.

4. Comparison of prices, rents and return calculation (ROI)

– Building: average purchase price for a studio is 14,740 AED/m², average rent is 1,185 AED/m².
– Area: average purchase price is 17,320 AED/m², average rent is 1,133 AED/m².
– Gross yield (ROI, excluding expenses):
– Building: 1,185 / 14,740 ≈ 8.0%
– Area: 1,133 / 17,320 ≈ 6.5%
– Net yield taking into account entry costs (≈7–8% expenses):
– Building: ~7.4% (division by 1.08)
– Area: ~6.0%
– Investment fair value for a studio in LAGUNA TOWER at a target yield of 7–8%:
– For 7%: 1,185 / 0.07 = 16,930 AED/m²
– For 8%: 1,185 / 0.08 = 14,810 AED/m²
– The actual sale price (14,740 AED/m²) lies within the range of fair investment expectations: an investor can achieve a yield of around 8% even after all initial costs.
– Across JLT, the market price is noticeably above the fair range (it is only fair for a landlord if the target ROI is around 6%).

5. Liquidity and outlook

– The building shows a regular number of sales and leases, indicating steady demand for studios in LAGUNA TOWER.
– The gap between price and rental rate makes this building significantly more attractive than JLT as a whole for a conservative investor.
– Over 3–5 years the building has shown above-average growth in both prices and rents up to the market level, while still maintaining a price discount to the area average.
– Further acceleration in price growth should not be expected without a substantial increase in rents. The building is optimal for generating stable income rather than for large capital gains.