ROI analysis of apartment in Luxury Family Residence II: DLD data and real deals

1. Definition of the area and data structure

Actual location: Luxury Family Residence II is located in Business Bay according to DLD data. All transactions and data analysis are carried out for this area and master project. A full sample for the building was used for the analysis — 2-bedroom apartments, as well as area-wide data as a reference and benchmark.

2. Apartment transactions (sales)

Volume and activity:
In total, 27 transactions for 2-bedroom apartments have been registered in the building, which indicates normal liquidity for a complex in a business district. Over the past 12 months, the average sale price has been 25,606 AED/m².

Price dynamics for the building:
Average price per square meter for 2-bedroom apartments in Luxury Family Residence II by period:
– Q2 2023: 28,240 AED/m²
– Q3 2023: 29,148 AED/m²
– Q4 2023: 34,993 AED/m² (growth)
– Q2 2024: 32,866 AED/m²
– Q3 2024: 31,870 AED/m² (slight decline)
– Q4 2025: 25,606 AED/m² (current annual average)

Comparison with Business Bay:
Across the area (2-bedroom apartments), the average price per m² over the past 12 months is 23,646 AED — meaning the building trades at an 8–9% premium to the area, which looks market-consistent for a new complex.

The price growth for 2-bedroom apartments in Business Bay has been steadily continuing since 2021 (from ~13,000–16,000 AED/m²) to the current 23,000–24,000 AED/m².
In terms of dynamics, Luxury Family Residence II has consistently shown prices above the area average throughout 2023–2025, which indicates stable demand and a premium positioning within its segment.

3. Rental market

For the building:
Luxury Family Residence II has a significant number of rental contracts (74 contracts for all apartment types, with few specifically for 2-bedroom units in the current year), but for the entire building the average annual rental rate per m² over the past 12 months has been 2,059 AED.

For the area:
In Business Bay, the average rent for all types of residential properties is 1,323 AED/m² for the same period.
For tenants and investors, this confirms that the building is in high demand and rents at levels above the area average (a difference of more than 55%).

Rental dynamics:
– Building: over the last four quarters, rental rates have remained in the range of 1,895–2,146 AED/m², indicating stable demand.
– Area: over recent years, rents in Business Bay have been steadily rising from 700 AED/m² (2020–2021) to 1,200–1,400 AED/m² in 2025–2026.

4. Comparison of rent and sale prices, yield (ROI) calculation

Current average values (last 12 months):
– Purchase price (building): 25,606 AED/m²
– Purchase price (area): 23,646 AED/m²
– Estimated rent (building): 2,059 AED/m² per year
– Estimated rent (area): 1,323 AED/m² per year

Gross yield for an investor:
– Building: 2,059 / 25,606 ≈ 8.05% per annum (gross)
– Area: 1,323 / 23,646 ≈ 5.6% per annum

Adjustment for entry costs (DLD fee ≈ 4%, broker ≈ 2%, other ≈ 1–2%):
– ROI_net for Luxury Family Residence II ≈ 8.05% / 1.07–1.08 = 7.3–7.5% per annum
– For the area ≈ 5.2–5.3% per annum

“Fair price range” for an investor:
– To achieve 7–8% per annum at current rental levels in the building, the fair purchase price range is 25,700–29,400 AED/m² (almost identical to market prices in recent years).
– For the area, this range is wider: 16,500–18,900 AED/m² (at an average rent of 1,323 AED/m²), while the actual market price in the area is 25–40% above this corridor, which explains the lower yields.

5. Outlook and liquidity

Luxury Family Residence II demonstrates very high liquidity in both sales and rentals. The building consistently rents above the market, and apartments are purchased with a premium, yet the current yield level remains attractive for investors. Elevated rental rates and steady demand ensure a fast payback period and good prospects for value preservation over a 3–5 year horizon, given the positive dynamics in Business Bay.

Conclusion: The asset can be considered attractive for an investor seeking 7%+ annual returns in hard currency without a significant risk of demand weakening. It is important to note that the yield is already close to the potential fair investment range, and paying additional premiums to the market at purchase is not advisable.