ROI analysis of apartment in Milos by Karma: DLD data and real deals — 18.12.2025

1. Definition of the area and data structure

Actual location: according to DLD, the Milos by Karma building is located in Wadi Al Safa 5 and is part of the Dubai Land Residence Complex master project. The analysis uses only transactions in this building and aggregated data for Wadi Al Safa 5, since there are still no actual rental contracts recorded in the database for this specific building.

2. Liquidity: transaction frequency and demand

A total of 161 transactions involving Milos by Karma units have been recorded. In 2024 there were 32 deals, and in 2025 (including preliminary/deferred sales in DLD) already 129 transactions, which indicates an active sales phase and strong investor interest. Off-plan sales dominate; the building has most likely not yet been handed over, which explains the absence of rental contracts in the database.

Across Wadi Al Safa 5 in recent years, the transaction volume has been consistently high: several thousand deals per quarter, confirming strong liquidity at the location level.

3. Price dynamics for purchases at building and area level

The average price per square metre in Milos by Karma over the last 12 months has been around 12,653 AED/m². Quarterly dynamics from 2024 to 2025 show a gradual decline: at the end of 2024 the average sale price was about 13,369 AED/m², while in the latest quarters of 2025 it moved into the 12,333–12,735 AED/m² range (based on completed transactions).

For comparison, the average price per m² in Wadi Al Safa 5 over the last 12 months is noticeably higher, at around 14,000 AED/m². Quarterly figures for the area fluctuated from 10,008 AED/m² at the beginning of 2024 to 15,186 AED/m² in the last quarter of the sample, indicating a dynamic and growing market with substantial volatility over the past 3–4 years.

4. Rental analysis: data and limitations

As of now, there are no registered rental contracts in DLD specifically for Milos by Karma, which is typical for new, still under-construction (off-plan) buildings. At the district and master-project level, however, the volume of new contracts is very high — thousands of deals annually.

The average annual rent in Wadi Al Safa 5 over the last 12 months is approximately 761 AED/m² per year. Over the past 2 years, the area has shown rapid rental growth: from ~620 AED/m² at the beginning of 2023 to >790 AED/m² in the latest 2025 data.

5. Comparison of prices and current yield level (ROI)

Given the above data on market prices and rents at the area level, investor profit can only be assessed using the district benchmark — DLD rental data for the building itself is insufficient for a direct calculation.

Yield calculation for Wadi Al Safa 5:
– Average purchase price (across all deals over 12 months): around 14,000 AED/m².
– Average annual rent: around 761 AED/m².

Approximate district ROI: 761 / 14,000 ≈ 5.4% per annum (gross), assuming purchase at the average price. After one-off transaction costs (~7–8% of the purchase price), the effective net ROI for a new buyer will be in the region of 5–5.1% per annum.

6. “Fair price” analysis for a target ROI of 7–8% per annum

Calculation of the fair purchase price range for a target yield of 7–8% per annum for the area:
– Lower bound (8% ROI): 761 / 0.08 ≈ 9,513 AED/m².
– Upper bound (7% ROI): 761 / 0.07 ≈ 10,871 AED/m².

The current average price at the area level significantly exceeds this range (~14,000 AED/m²), while Milos by Karma as an off-plan product is currently offered below the average market level in Wadi Al Safa 5 (~12,650 AED/m², which is about 10% cheaper than the average deal in the area), yet still above the “investment fair” price for a classic 7–8% yield strategy.

7. Investor outlook

Milos by Karma is a clear example of a liquid, in-demand off-plan project where the entry price is already close to the upper, peak phase of the local growth cycle. Buying at current levels can be justified as a bet on further development of the location and overall market growth. However, for an investor focused on long-term rental yield (7–8% per annum), a substantial discount to the district average is required — a discount that is currently not available even for off-plan projects.

The Wadi Al Safa 5 market is dynamic and enjoys stable demand, but yield is increasing mainly due to rising rents, while entry prices are growing faster, which leads to ROI compression for new investors.

8. Conclusions

– Liquidity of both the building and the area is high, with rapid unit absorption and a large flow of transactions.
– Current entry price for Milos by Karma is around 12,650 AED/m², roughly 10% below the district average.
– Rental market yield in Wadi Al Safa 5 (based on the latest DLD data) is about 5.4% per annum before costs.
– For an investor targeting a 7–8% ROI, the fair price range is 9,500–10,900 AED/m²; actual prices are 20–30% higher.
– Growth potential is more pronounced on the rental side, but for sustainable investment returns, entry into the project is advisable only with a discount to the market.
– Repeat the analysis in 6–12 months to factor in the first rental contracts for Milos by Karma.