ROI analysis of apartment in Loci Residences: DLD data and real deals

1. Area definition and data structure

Actual location: according to DLD data, the Loci Residences building is located in Al Barsha South Fourth, within the Jumeirah Village Circle master project. For 2-bedroom apartments (2 b/r), the DLD database contains 19 sale transactions and 85 confirmed lease contracts (in recent years).

ROI analysis of apartment in Loci Residences: DLD data and real deals Continental Club Property LLC

2. Liquidity and transaction frequency

Regular transactions have been recorded since 2022: 3 deals in 2022, 5 deals in 2023, 10 deals in 2024 (and already 1 in the future – 2025, but for the analysis we use only completed transactions no later than the current date). For the 2-bedroom segment in this building there is a stable flow of new owners, which reflects ongoing demand. Rental activity also shows a steady pattern, confirming its attractiveness for tenants.

ROI analysis of apartment in Loci Residences: DLD data and real deals Continental Club Property LLC

3. Price dynamics per square metre (Loci Residences, 2-bedroom)

Average price per m² based on confirmed sales:

  • Q4 2022: 9,814 AED/m²
  • Q3 2023: 9,847 AED/m²
  • Q4 2023: 10,304 AED/m²
  • Q2 2024: 9,741 AED/m²
  • Q3 2024: 9,477 AED/m²

The average price range per m² over the past 12 months is 8,827 AED/m² (noticeably lower than before), which may indicate a price dip in new transactions or sales at slightly lower rates during the initial handover phase.

4. Comparison with the wider area (Al Barsha South Fourth, apartments)

The average price per m² over the last 12 months across the entire area is 15,122 AED/m² for residential apartments – roughly 1.7 times higher than the current level in Loci Residences (8,827 AED/m²). In terms of dynamics: over the last 2 years the area has shown strong growth – from 11,212 AED/m² in Q1 2023 to 13,296–13,520 AED/m² in the second half of 2024 and up to 15,693 AED/m² by the end of 2025.

5. Rental dynamics and levels

For Loci Residences, the average annual rent per m² over the last 12 months is 1,208 AED/m², with the main flow of contracts in 2024–2025 (we see a further mild increase in rates: Q3 2024 — 1,257 AED/m², Q4 2024 — 1,300 AED/m²).

For the entire area, the comparable rental rate over the last 12 months is 1,047 AED/m², which is 13–15% lower than in the building itself. Across the area, the rental rate trend is clearly upward: from around 812 AED/m² at the end of 2023 to 849–897 AED/m² in 2024 and above 1,000–1,145 AED/m² by 2025–2026.

6. Yield comparison and fair value ranges

  • Actual gross yield (ROI) for Loci Residences (based on average rent and transaction price over 12 months): 1,208 / 8,827 = 13.7%
  • Actual ROI for the area: 1,047 / 15,122 = 6.9%

Taking into account standard transaction costs (7–8% entry costs), the net effective yield for the building will be around 12.7–12.9%. For the area, this figure will be 6.3–6.5%.

As a benchmark: for a purchase in this building to deliver an “investment-fair” yield of 7–8% per annum, the fair price range per m² would be around 15,100–17,300 AED/m² (i.e. at or above the average price for the area). Actual current deals are closing with a substantial premium in rental yield, which reflects strong investment appeal for rental business, but may indicate discounted sale values (or artificially elevated rental rates at the start of operation).

7. Conclusions on outlook and liquidity

— According to DLD data, Loci Residences is clearly a higher-yielding asset for a rental investor compared with typical apartments in Al Barsha South Fourth, which is evident both from the average transaction price and from the rental rate.
— Resale prices in the building are still noticeably below the area’s average, creating an entry point for yield-focused investors. However, one should factor in the typical effect for new buildings: early transactions are often cheaper, and rental rates may adjust once occupancy stabilises.
— Liquidity in both the building and the area is very high; the number of sales and lease contracts suggests the property is in strong demand among both buyers and tenants.
— It is doubtful that the current double-digit yield will be sustained over a 3–5 year horizon: convergence towards area-level returns (6–8% per annum) is likely. The continued price growth in the area over the last 2 years supports a positive view on capital appreciation prospects, but the current “gap” (the building being much cheaper than the wider area) may narrow over time.

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