1. Definition of the area and data structure
Actual location: the building Mercer House South Tower is registered in DLD as “MERCER HOUSE – SOUTH TOWER” and, according to the registry export, is located in Al Thanyah Fifth, master project DMCC-EZ1.
For this building there are confirmed sale transaction records for 1-bedroom apartments (1BR) from July 2024 to November 2025 (all transactions are off-plan, dates refer to registration, not handover). A total of 76 transactions for 1BR units in the building have been recorded.
According to DLD rental data, there are no registered contracts either for this specific building or for comparable units within it. The rental market in the area is highly liquid: over the last 12 months almost 60,000 residential lease contracts have been registered in Al Thanyah Fifth, which provides a solid and representative benchmark for area-level rental rates, though not specifically for this complex.
2. Price dynamics and distribution in the building and the area
Transaction structure for Mercer House South Tower 1BR units:
- Size range: 86.5–90.4 m², average size — 88.2 m².
- Total price range: from 1,718,828 to 2,766,828 AED; average deal size — around 2,134,973 AED per apartment.
- Price per m²: minimum — 19,687 AED, maximum — 31,675 AED, average — 24,213 AED/m².
- The main bulk of transactions took place in Q3 and Q4 2024, with registrations completing in 2025.
Brief dynamics of the average 1BR price per m² in the building:
- 2024Q3: 23,913 AED/m² (51 transactions)
- 2024Q4: 23,782 AED/m² (17 transactions)
- 2025Q1: 28,876 AED/m² (4 transactions — possible spike due to small sample size)
- 2025Q2: 23,727 AED/m² (2 transactions)
- 2025Q3: 30,478 AED/m² (1 transaction, low representativeness)
- 2025Q4: 22,923 AED/m² (1 transaction)
Dynamics for Al Thanyah Fifth (1BR):
- Over the last 4 years, the average 1BR price per m² has shown steady growth: from 10,600 AED/m² in 2022Q3 to 19,700 AED/m² over the last 12 months, and above 20,500 AED/m² in the latest quarters of 2025.
- The current price level in Mercer House South Tower is ~23% higher than the area average (24,200 vs. 19,700 AED/m²).
3. Rental market analysis
No rentals have been registered in DLD for Mercer House South Tower. For the wider area (Al Thanyah Fifth, all apartments):
- Average annual rent over the last 12 months: 1,091 AED/m²/year.
- Growth dynamics: in 2020 — around 570 AED/m²/year, in 2023 — already 840–920 AED/m²/year, in 2024 the average exceeds 1,050 AED/m²/year.
4. Comparison of purchase and rental levels, yield calculation
Average 1BR purchase price over the last 12 months in the area — 19,707 AED/m².
Average rent in the area over the same period — 1,091 AED/m²/year.
Gross yield calculation (ROI, brutto):
- For the area: 1,091 / 19,707 ≈ 5.5% per annum.
- For the building, gross yield cannot be calculated due to the absence of confirmed DLD rental contracts (as of summer 2024, leasing in the building had not yet started).
Adjustment to net yield (ROI, net), taking into account standard transaction costs of 7–8%:
- Net ROI for the area: 5.1–5.2% per annum, if the full entry cost is considered (taxes, commissions, vacancy).
Fair investment price range (benchmark for 7–8% per annum):
- For the area: to achieve 7–8% per annum at current rental levels, the “investment” purchase price should be 13,640–15,583 AED/m², assuming rent remains at the current level (1,091 / 0.08 and 1,091 / 0.07).
- The actual market price is about 25–30% above this range even at the area level (19,707 AED/m²), and even higher in the project itself (~24,200 AED/m²). This indicates a premium for newness, brand, and the off-plan status of the project.
5. Conclusions on liquidity and investment attractiveness
- Liquidity is very high: the area is one of the most active in terms of both sales and rentals; entry into the project has been actively absorbed since 2024.
- Area dynamics show a twofold price increase over 3 years; Mercer House South Tower is 23–30% more expensive than the average stock in the area.
- For a new buyer (at current off-plan prices), once rents reach the area level (assuming future leasing), yields will be significantly below the 7–8% “investment” target, at around 4.5–4.7% per annum including commissions. Achieving 7–8% would require a substantial discount from current prices.
- There is still no rental performance data specifically for the building, but area-wide demand is confirmed by tens of thousands of contracts.
- Short-term price upside at handover appears limited — the high entry price already embeds a premium for a new-build asset.
Recommendation: Mercer House South Tower is a highly liquid premium asset in a vibrant area. However, achieving a 7–8% annual yield at current entry levels in this project is not feasible without relying on a significant further increase in rents or a correction in purchase prices. For investors, it is reasonable to base expectations on the area’s ROI (~5.5% brutto); for end users, the focus is on the quality and newness of the location.
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