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

1. Definition of the area and data structure

Actual location: MADINA TOWER is located in the Al Thanyah Fifth area, within the master project Jumeirah Lakes Towers (JLT). This is confirmed by DLD data for both sales and rentals.

According to the DLD database, more than 230 transactions have been recorded in MADINA TOWER across all apartment types. Among them, 2-bedroom units have shown stable turnover in all reviewed years, including the last 12 months. For rentals, there is no data specifically for 2-bedroom apartments in this building, but there is a large and valid dataset for the master project and the area (JLT / Al Thanyah Fifth).

2. Analysis of transactions with 2-bedroom apartments in MADINA TOWER

2.1. Transaction frequency and dynamics
Over the past 3 years, the number of transactions with 2-bedroom apartments in the building was:
– 2022: 14 transactions
– 2023: 26 transactions
– 2024: 35 transactions (as of the request date; there is data for 2025, but only completed dates are used for the analysis)

Thus, liquidity is high and is steadily increasing.

2.2. Sale price per square metre (m²)
– Over the last 12 months, the average price for 2-bedroom apartments in MADINA TOWER was AED 12,912 per m² (14 transactions).
– For comparison, across the entire Al Thanyah Fifth area in the same segment (2-bedroom apartments, “apartment” type only), the average price per m² over the last 12 months was AED 19,039 (1,320 transactions).

2.3. Average price dynamics over 3–5 years for the building
The period from 2020 to 2024 was characterised by the following changes in average price per m² by quarter:
– At the beginning of 2020 the level was slightly above AED 9,300/m², then fluctuated (from ~5,500 to ~8,500).
– From early 2023 a steady increase was observed: from 9,500–10,350 AED/m² to 11,000–13,000 AED/m² in 2024 and early 2025.
– Growth rates in MADINA TOWER are noticeably lower than the area average, where the mean price in recent years quickly crossed the 16,000–18,500 AED/m² range (in many quarters), and by 2024 moved further to >17,000 AED/m² and above.

3. Rental market analysis

3.1. Data for MADINA TOWER (2-bedroom apartments)
Over the last 12 months there have been no valid DLD rental contracts for 2-bedroom units in this specific building. However, for the entire JLT project (Al Thanyah Fifth area) the sample size is large and reflects the actual yield situation for comparable apartments in the wider area.

3.2. Area averages (JLT, Al Thanyah Fifth, apartments)
– Over the last 12 months, the average rental rate in the area was AED 1,130 per m² per year (6,665 contracts).
– For 2-bedroom apartments in the area, the median rate was AED 999 per m² per year (1,812 contracts).

3.3. Rental rate dynamics in the area
– From 2020 to 2021 — growth from 620 to 830 AED/m²/year.
– 2023: 890–975 AED/m²/year.
– 2024 (recent quarters): already 987–1,084 AED/m²/year.
– The trend is a confident increase in yields across the area and specifically in the 2-bedroom segment.

4. Comparative analysis and yield (ROI)

– The current purchase price per m² in MADINA TOWER for 2-bedroom apartments is 32% below the area average (12,912 vs 19,039 AED/m²).
– The current typical rental rate (area-wide, not for the building) for 2-bedroom apartments is 999 AED/m²/year.

Based on these (area-level) figures, approximately:

– Rough ROI for an investor (gross, by area): 999 / 19,039 ≈ 5.2% per annum.
– If we calculate based on the MADINA TOWER purchase price (12,912 AED/m²), ROI increases to around 7.7%, but it is important to understand that the actual market rent in this building may be lower than the area average — the absence of contract data for the building itself indicates potential yield but does not guarantee it.

Taking into account transaction costs (7–8% on entry):
– After adjusting to “net” yield, the ROI_net for the building decreases to around 7.1–7.2% (approximate).

A “fair price range” for an investor targeting a 7–8% ROI in the area (with a rental rate of 999 AED/m²/year):
– Upper bound (8% yield): 999 / 0.08 ≈ 12,490 AED/m².
– Lower bound (7%): 999 / 0.07 ≈ 14,270 AED/m².
– The current price in MADINA TOWER (12,912 AED/m²) falls within this benchmark, and a purchase looks reasonable/justified from an investment yield perspective (based on area-level calculations).

5. Conclusions and outlook

– Liquidity of 2-bedroom apartments in MADINA TOWER is high.
– Price dynamics in the building lag behind the area: MADINA TOWER is significantly cheaper than average JLT levels, but offers strong ROI potential if rental rates are close to the area average.
– There is upside potential for capital appreciation, given the overall JLT trend, but in practice MADINA TOWER consistently trades at a discount to the area.
– For a conservative investor, a purchase at the current level (12,900–13,000 AED/m²) looks justified, provided rental expectations are confirmed in reality (benchmark rent — 950–1,050 AED/m²/year).
– Entry costs will amount to up to 7–8% of the purchase price; post-fee ROI will be slightly above 7%.
– If the goal is a quick resale at the area’s average price, the potential upside is up to a 40% premium, but the feasibility of this scenario depends on the specific apartment’s characteristics and demand for MADINA TOWER.