ROI analysis of apartment in LAKE TERRACE: DLD data and real deals

1. Definition of the area and data structure

Actual location: LAKE TERRACE belongs to the Al Thanyah Fifth area and the Jumeirah Lakes Towers (JLT) master project. The names fully correspond to DLD records.
Data volume: The DLD database contains 360 sales for LAKE TERRACE, including 151 transactions for one-bedroom units (1BR). There is also a substantial body of rental data: over the past years more than 2,000 lease contracts have been registered for LAKE TERRACE, including a large number for residential apartments.

2. Liquidity and transaction activity

The volume of sales and rentals indicates high liquidity of the building and stable demand from both buyers and tenants. This is typical for the 1BR segment in JLT — one of Dubai’s most mature residential clusters.

3. Average price per m² dynamics (sales), over 3–5 years

– For LAKE TERRACE, 1BR:
Over the past 5 years the average price per m² has increased from around 9,500–10,000 AED (2020–2021) to 13,500–19,000 AED (2023–2024). In 2024 there were peaks up to 19,253 AED/m², while quarterly averages fluctuated between 13,800 and 17,000 AED/m².
Last 12 months: the average price per m² for 1BR in LAKE TERRACE was 15,692 AED. This is noticeably below the area-wide average for 1BR (19,820 AED/m²).

– For Al Thanyah Fifth (JLT), 1BR:
The price per m² has grown faster than in the building itself — from 8,500–11,000 AED (2020–2022) to 16,000–20,000 AED in 2024. Over the last 12 months the area-wide average price for 1BR was 19,820 AED/m².

– Comparison: the average price per m² in LAKE TERRACE is about 20–25% below the area benchmark, with comparable growth rates.
– The number of transactions in the building is sufficient for an objective analysis (around 5–11 sales per quarter in 2023–2024).

4. Average annual rental rate per m² dynamics and distribution

– For LAKE TERRACE:
Over 3–4 years the average annual rental rate in the building has increased from 680–880 AED/m² (2020–2021) to 1,135–1,195 AED/m² (2024, by quarters).
The average rate in the building over the last 12 months is 1,230 AED/m².
– For Al Thanyah Fifth (JLT):
The area benchmark over the last 12 months is 1,100 AED/m² for all residential units, which is slightly below the level in LAKE TERRACE.
– Rental transaction volume is very high (around 80–110 contracts per quarter in the building, thousands in the area), which eliminates the impact of outliers.

5. ROI (gross yield) and fair price range for 7–8% per annum

– For LAKE TERRACE (building level) the calculated gross yield (ROI_brutto) is: 1230 / 15692 ≈ 7.8% per annum.
Taking into account transactional/entry costs (~7%), the effective (net) yield is: ROI_net ≈ 7.3% per annum.
– For the area (1BR): ROI_brutto = 1100 / 19820 ≈ 5.5% per annum, ROI_net ≈ 5.1%.
– “Fair price range” for a target yield of 7–8% per annum:
For LAKE TERRACE: 1230 / 0.08 = 15,375 AED/m² (for 8%), 1230 / 0.07 = 17,571 AED/m² (for 7%).
The current average market level in the building (15,700 AED/m²) is very close to the lower boundary of this range and provides a balanced yield of 7.8–8%.
For the area: to secure a similar yield, the purchase price in the area would need to be 13,750–15,700 AED/m², which is far below current transaction levels (19,800 AED/m²); therefore, buying a comparable apartment at the average area price is not attractive for a 7–8% yield without a substantial discount to the average.

6. Conclusions on prospects and comparison with the area

– Based on the aggregate DLD data, LAKE TERRACE 1BR units stand out because the price per m² is significantly below the area average (~20–25% discount), while rental yield is at least 2 percentage points higher.
– The rental market in LAKE TERRACE has proven liquidity, and rental rate dynamics consistently outperform the area benchmark on a per‑m² basis.
– Over the last five years there has been strong growth in both capital values and rents; in 2023–2024 prices increased by 25–30%, and rental rates accelerated to record levels for the building.
– For an investor, the current pricing makes LAKE TERRACE one of the best ROI options in the JLT 1BR segment, while also offering high market transparency (liquidity across all time horizons) and strong tenant demand.
– The yield gap between the area and this building is expected to narrow as transaction prices in the building continue to rise, but the current difference still allows for returns above the JLT/area average.
– The balance of supply and demand, transaction volumes and performance history confirm the investment appeal of the asset at the current asking levels. There is no need to overpay relative to today’s prices to achieve a 7–8% ROI; buying at the average JLT market level is already inefficient.

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