1. Area definition and data structure
Actual location: MBL Royal is a residential building which, according to DLD, belongs to the Al Thanyah Fifth area, master project Jumeirah Lakes Towers. Sales and analysis are based on transactions with 2-bedroom apartments (“2 b/r”), as specified in the input context.
2. Transaction volume and liquidity of the property/area
There is a high sales volume for 2-bedroom apartments in MBL Royal: a total of 105 transactions recorded over the entire observation period. Peak activity occurred in 2022–2023, with individual transactions still recorded as of 2024.
The sample for the entire Al Thanyah Fifth area is very large (tens of thousands of rental contracts), which indicates a large-scale and highly liquid market, especially for residential leasing (more details below).
3. Price dynamics over 3–5 years: building and area
For transactions with 2-bedroom apartments in MBL Royal (average price per m²):
– At the end of 2022 and the beginning of 2023, average prices remained at 16,400–16,700 AED/m².
– From mid-2023, growth is observed: from 16,700 to 20,100 AED/m², with some quarters reaching up to 20,600 AED/m² (2025).
– Over the last 12 months, the average price in the building is around 19,374 AED/m².
In Al Thanyah Fifth the trend is similar, but starting levels are lower:
– In 2020–2021: 7,000–10,400 AED/m², followed by steady growth.
– 2022: ~11,700 AED/m², and from 2023 a gradual convergence with the MBL Royal level.
– Over the last 12 months, the average sale price for 2-bedroom apartments in the area is around 19,020 AED/m².
It is important to note that MBL Royal started with a certain premium to the area, but by 2024 the gap between the building and area prices has almost disappeared (<2%).
4. Market rent and yield (ROI)
The DLD database shows no registered current rental contracts for 2-bedroom apartments in MBL Royal. The same applies to the entire Jumeirah Lakes Towers master project. However, for Al Thanyah Fifth it is possible to estimate an average market rent at the area level (across all apartments).
Dynamics of average rental rates in the area (all apartments):
– 2020: 570–670 AED/m²/year.
– 2022: growth to 780 AED/m²/year.
– 2023: acceleration to 840–925 AED/m²/year.
– 2024: exceeds 1,000 AED/m²/year in recent quarters, with a maximum of 1,147 AED/m²/year (end of 2025), and an average level over the last 12 months of 1,099 AED/m²/year.
ROI calculation (data only at area level!):
– Average rent per m² (12 months, area): 1,099 AED/m²/year.
– Average purchase price (12 months, area): 19,020 AED/m².
– Rough gross yield for the area: 5.8% per annum (brutto) — below Dubai’s typical target investment range.
– Taking into account transactional and initial costs (7–8% on top of the purchase price), the actual ROI falls to 5.4–5.5% per annum (net).
Assessment of a fair investment price range for a 7–8% ROI:
– For a target yield of 7–8% per annum (a benchmark for a typical passive investor):
– 1,099 / 0.08 = 13,740 AED/m² (for 8% per annum);
– 1,099 / 0.07 = 15,700 AED/m² (for 7% per annum).
– The current market is significantly above this range, meaning that a purchase at the average market price does not provide the target yield without a substantial rental premium or expectations of further capital appreciation.
5. Comparison with the area
At this stage, MBL Royal has aligned in price per m² with the average level for new projects in Al Thanyah Fifth. Rental rates in the area are high by historical standards, but they do not match current sale prices in terms of yield. It is likely that some new buildings (including MBL Royal) were initially sold at higher prices than the rental benchmark that has formed for tenants in the area.
6. Outlook and liquidity
The Jumeirah Lakes Towers (and Al Thanyah Fifth) market is one of the most liquid in terms of both sales and rentals. For MBL Royal, liquidity is confirmed by the large number of transactions; however, over the next one to two years a potential investor should expect an ROI noticeably below Dubai’s historical market standards — and choose a strategy either focused on further capital growth or on achieving a significant rental premium. The rental market is overheated, which limits the potential for further rent increases and creates additional competition among landlords.
Without registered current rental contracts for the building itself, it is impossible to provide an accurate yield forecast for a specific apartment in MBL Royal; the calculation is based on the area and should be treated as an average market benchmark.
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