ROI analysis of apartment in MAG218: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to the DLD database, MAG218 is located in the Marsa Dubai area, within the Dubai Marina master project. An exact match of the building name (MAG218) was used; filtering at the apartment level by 0BR (studio) unit type showed no direct transactions for this type, therefore the analysis is carried out at the building and area level.

Data structure:
– Sales: 423 transactions recorded for MAG218.
– Leasing: 1,969 contracts over the entire period (for the whole building, not only studios).

2. Price and transaction dynamics for the building and the area

MAG218 (0BR/studio segment): There are no transactions explicitly marked as “studio” in the DLD — most likely, studios are either absent in this building, or all records are classified as 1BR+.
Therefore, further analysis is conducted at the level of the entire building (MAG218) and the Marsa Dubai area benchmark.

Dynamics for Marsa Dubai (apartments overall, last 5 years):
– The average price per m² over the last 4 quarters has fluctuated in the range of 21,400–27,900 AED/m².
– The average level for the area over the last 12 months is about 26,870 AED/m².
– The average price per m² in the area has increased by 25–30% over the last 3 years (since 2021, from ~19,300 to 24,000+ AED/m²).
– Market activity is stable; data on transactions and areas is available every quarter.

3. Rental dynamics for the building

For MAG218:
– The average annual rental rate per m² over the last 12 months is about 970 AED/m².
– Segment range: 1-bedroom (1 bed room+Hall) — average rent around 1,040 AED/m²; 2-bedroom (2 bed rooms+hall) — around 820 AED/m².
– Over the last 3 years, the average rental rate increase in MAG218 has exceeded 35% (from ~700 AED/m² in 2022 to 950+ AED/m² in 2024).
– New contracts are signed on a regular basis; liquidity is at a high level.

4. Averages for the last 12 months and yield calculation

Current average price per m² in Marsa Dubai (applicable to MAG218, as the building-level data for studios is excluded due to absence): ≈ 26,870 AED/m².
Average rent in MAG218 over the last 12 months: ≈ 970 AED/m² per year.

Gross ROI for the building (MAG218, based on confirmed contracts):
– ROI_gross = 970 / 26,870 ≈ 3.6% per annum.
– Adjustment for transaction costs (around 7% of the deal price):
ROI_net ≈ 3.3–3.4% per annum.

Benchmark for a fair price targeting a 7–8% investment yield:
– For an investor targeting 7–8% gross, the price range for MAG218 should be:
970 / 0.08 = 12,125 AED/m² (minimum), 970 / 0.07 = 13,850 AED/m² (maximum).
– The current market price is almost twice as high as the potential “investment range”. Even taking into account market growth, a purchase now with the goal of achieving a net yield of 7–8% per annum would require either a substantial discount or a different strategy (for example, a bet on capital appreciation/reconfiguration).

5. Liquidity, outlook and conclusions

– Sales and rental transactions in MAG218 occur on a regular basis; liquidity is high.
– The building is fully integrated into one of the largest residential clusters in Dubai Marina; rental demand is stable, and the tenant base is predominantly long-term.
– The market price (≈27,000 AED/m²) already reflects the Dubai Marina premium and the dynamics of recent years.
– Given the average rental yield of less than 4% gross even at market purchase price, MAG218 and this area are a “safe haven” with high liquidity, but not the best option for a classic income-focused investor. To reach 7–8% per annum, a substantial discount to the market is required, which is currently not available.
– Under current market conditions, MAG218 is more attractive for buyers focused not on maximum yield, but on stable rental demand, high liquidity and positive capital value dynamics.