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1. Definition of the area and data structure
Actual location: Milos by Karma is registered in the DLD database under the Wadi Al Safa 5 area, as part of the master project Dubai Land Residence Complex. For the analysis, we used transactions filtered as “Milos by Karma — 2-bedroom” and compared them with the wider Wadi Al Safa 5 market.
The DLD database records 23 transactions for 2-bedroom apartments in Milos by Karma. Most of the deals were concluded at the beginning of 2025, which is typical for new developments at the key handover stage or at the stage of title confirmation through DLD.
2. Transaction and price dynamics for the building
Recorded transaction volume:
– In Q1 2025 — 18 transactions for 2-bedroom apartments.
– In Q2 2025 — 5 transactions.
Average price per m² dynamics for the building:
– In Q1 2025: about 10,930 AED/m².
– In Q2 2025: about 10,814 AED/m².
– The average price per m² over the last 12 months for 2-bedroom units in Milos by Karma is 10,905 AED/m².
These levels fall within the typical primary market price range for the area, but are below the current district average for the same period.
3. Comparison with the district market
Average price per m² in Wadi Al Safa 5:
– Over the last 12 months: 13,386 AED/m² (across all apartment types).
– In recent quarters, the average price has risen to around 13,000–15,000 AED/m², with a sharp increase starting from Q2 2024.
– Milos by Karma (2-bedroom units) is trading at roughly an 18% discount to the average price per m² in the district.
4. Rental analysis and yield calculation
At the building and master-project level, DLD has not recorded a single rental contract over the last 12 months for 2-bedroom apartments in Milos by Karma. This is due to its status as a new development and the temporary absence of rental history.
Across Wadi Al Safa 5, more than 10,000 rental contracts have been registered over the last 12 months (all unit types and sizes). The average confirmed rental rate:
– Annual rent in the district: 755 AED/m² per year.
– The dynamics show a rapid increase in rents since 2022 (in 2022 — 440–540 AED/m², in 2023–2024 — 600–780 AED/m²).
The current average rental rate for the last 12 months is 756 AED/m² per year.
5. Calculation of ROI (yield) and fair price
Gross yield at the district level (calculation is only possible at district level, as there are no registered rentals for the building or master project):
– ROI_gross = average rent / average price per m² = 756 / 13,386 ≈ 5.6% per annum (district-wide, all sizes and apartment types).
– For indicative net yield (after transaction and related costs of ~7–8% of entry price): ROI_net ≈ 5.2–5.3% per annum.
Fair price range to achieve a 7–8% yield at an average rent of 756 AED/m²:
– For a 7% yield: 756 / 0.07 ≈ 10,800 AED/m².
– For an 8% yield: 756 / 0.08 ≈ 9,450 AED/m².
The average market price for 2-bedroom units in Milos by Karma at the time of the report is around 10,900 AED/m², which is closer to the lower boundary of this range. It is above the fair price for a target ROI of 8%, but already corresponds to a target ROI of about 7% at current district rental levels.
6. Liquidity and outlook
– The transaction volume for the building is high for a new project at the key handover stage, indicating strong demand from buyers (primarily investors and early end-users).
– The pace of price growth in the district has accelerated significantly over the past 2 years, and rents are also rising. However, yields (ROI) remain in the 5–6% gross range at current price levels.
– Milos by Karma initially traded at a discount of up to 18% to the district’s average market level. This suggests further price growth is likely, but it will depend on actual completion and occupancy by tenants.
– To calculate the individual yield of a specific apartment in Milos by Karma, it is advisable to wait for the first rental contracts for this building to appear in DLD, which will allow for more accurate yield and pricing benchmarks.
– Within the current market cycle, Wadi Al Safa 5 is showing solid growth rates, but new buyers and investors are likely to be constrained by the relative decline in ROI against the backdrop of sale prices outpacing the rental market.
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