1. Definition of the area and data structure
Actual location: According to DLD data, Majestique Residence 1 is located in Madinat Al Mataar and is part of the Dubai South Residential District master project. The analysis focuses on the 2-bedroom apartment (2BR) segment.
Data volume: On the sales side, there have been 61 transactions for 2BR units in Majestique Residence 1, and 125 transactions in total in the building. On the rental side, at least 74 contracts for 2-bedroom apartments in this project have been recorded over recent years, which provides sufficient statistical representativeness and confirms liquidity both for sales and for leasing.
2. Sales and price dynamics of the building and the area
Sales activity in Majestique Residence 1 increased significantly by 2024: the annual number of 2BR transactions was minimal in 2021–2022, then 7 in 2023 and 26 in 2024. This indicates the project’s entry to the market or completion of construction.
Average price per m² in the building (2BR) from 2021 to date (all transactions, excluding future years):
– 2021: 11,378 AED/m² (Q3, 2 transactions)
– 2022: 11,031 AED/m² (Q4, 1 transaction)
– 2023: range 10,898–11,141 AED/m² (several quarters, 7 transactions)
– 2024: range 11,036–11,349 AED/m² for the first three quarters (18 transactions)
Over the last 12 months, the average transaction price per m² for 2-bedroom apartments in the building has been 12,459 AED/m². This is noticeably above the building’s historical levels, indicating price growth after handover or completion of the construction phase.
For comparison, Madinat Al Mataar as a whole has been showing a confident increase in average apartment prices:
– 2022: 6,384–7,541 AED/m² per quarter
– 2023: 7,961–12,208 AED/m² by quarter (peak in Q3–Q4 2023)
– 2024: 12,974–16,214 AED/m²
The average transaction price in the area over the last 12 months is 16,776 AED/m² (against the backdrop of a large number of deals).
Summary: Prices for 2BR units in Majestique Residence 1 lag by roughly 25–30% behind the area’s average (12,459 vs 16,776 AED/m²). This may be due both to the positioning of this particular complex and to the overall distribution of quality and demand across the area.
3. Rental dynamics and levels
DLD rental data allows for a full-fledged statistical analysis.
Average annual rental rate per m² in the building (2BR) over the last 12 months: 987 AED/m².
In the area, the average rate is 907 AED/m² (all apartments).
Rental dynamics for 2BR units in the building:
– 2022: from 561 to 612 AED/m² per quarter
– 2023: growth from 616 to 691 AED/m²
– 2024: 734–872 AED/m² by quarter
The increase in annual rent for 2BR units from 2022 to the present is almost +50%, while the overall trend in the area is also positive (for example, the entire area in the first half of 2023 was around 600–670 AED/m², and in 2024 already 740–828 AED/m² per quarter).
4. Comparison of current price and rent levels, ROI calculation
Over the last 12 months:
– Building (2BR): price per m² 12,459 AED, rent — 987 AED/m² (building).
– Area: price per m² 16,776 AED, rent — 907 AED/m² (area).
Brutto ROI (for 2BR in the building): 987 / 12,459 ≈ 7.9% per annum.
Brutto ROI for the area (average values): 907 / 16,776 ≈ 5.4% per annum.
Taking into account standard acquisition costs (7–8% of the purchase amount), the “net” investment yield (net ROI) for the building will be around 7.3–7.4% / 1.07 ≈ 6.9% per annum (for an average purchase in the building, based on rents over the last 12 months). In the area, net ROI will be about 5.0% per annum.
“Fair price range” for an investor targeting a 7–8% yield (for the building):
– Lower bound (for 8%): 987 / 0.08 = 12,338 AED/m²
– Upper bound (for 7%): 987 / 0.07 = 14,100 AED/m²
Thus, the current average transaction price in the building (12,459 AED/m²) is close to the lower boundary of the fair range for an 8% yield and at a comfortable level for 7%. In other words, buying at current market prices can provide a yield within the range expected by most private investors. For the area as a whole, the “investor” price required would be significantly below the market — the area is noticeably overheated in terms of price relative to rental rates.
5. Conclusions and outlook
Majestique Residence 1 is a liquid building with measurable demand both for purchase and for rent, especially at the stage of construction completion and handover. Sales and rental data from DLD show a steady increase in prices per m² and annual rental rates across Madinat Al Mataar.
For an investor: The building’s market currently offers a yield of almost 8% per annum brutto and around 6.9–7% net after all expenses. This significantly exceeds the area average and is at the upper end of the typical range for Dubai. There is no substantial price cushion in the building relative to the market: there is no premium, while the discount to the area average is quite significant (around 25–30%), which is rather comfortable for an investor.
The current regional market is characterized by broad-based price growth; in the future, growth rates may stabilize, but the entry point for Majestique Residence 1 remains attractive relative to the area’s average prices. The probability of achieving a high yield when buying now is higher than for most “within-area” competitors.
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