1. Definition of the district and data structure
Actual location: according to DLD, MYKA Residence belongs to the Me’Aisem First district, master project International Media Production Zone.
Property type: filter applied to studios (0BR/Studio).
Data volume: for MYKA Residence there are 190 recorded sales and 197 rental contracts (studios in recent years) — a sufficiently large sample for robust conclusions.
2. Asset liquidity and demand
For MYKA Residence, 99 transactions were registered in 2023, 66 transactions in 2024 (to date), and there are already sales recorded for the “paper” period of 2025, which is typical for off-plan properties. The average number of properly registered DLD transactions for studios over the last 12 months is 9, i.e. part of the sales were completed earlier, but liquidity in both sales and leasing is confirmed by the high figures for the wider Me’Aisem First area: thousands of sales and rental contracts annually.
MYKA Residence also shows a stable flow of new lease agreements: over the last 12 months alone there have been 41 studio rental contracts. Rental demand is further confirmed at the district level (more than 2,700 contracts per year).
3. Price dynamics for studios in the building and the district
For MYKA Residence, the dynamics of the average price per square metre (studios) over the last 3 years are as follows:
– In 2023 the range of average prices per m² increased from 10,375 to 13,017 AED.
– In 2024 there was further growth: peak values reach 14,967 AED/m².
– The average sale price of studios over the last 12 months: 14,837 AED/m² (9 transactions).
For Me’Aisem First the difference is significant. Back in 2022–23 the average price per m² for studios was 7,200–8,600 AED; starting from Q4 2023 prices surged:
– In 2024 quarterly values reach 14,700–15,300 AED/m².
– The 12‑month district average is 16,005 AED/m² (3,063 transactions — a very large sample).
MYKA Residence is currently trading slightly below the average studio price in the district (about 7% below the district average), and some individual transactions show a noticeable discount versus the wider area.
4. Rental analysis (rate per m², comparison with the district)
For MYKA Residence:
– Average annual rental rate per m² for studios over the last 12 months: 1,248 AED/m² (41 contracts).
– For studios in the district the average rate is lower — 983 AED/m² (2,792 contracts).
Thus, in terms of rental rates MYKA Residence is significantly ahead of the district average (+27% on rental rate). This may indicate elevated demand for the building itself and the current competitiveness of the new development — a “new product premium”.
Dynamics for the building: the average rental rate per m² in 2023 was 970–1,320 AED/m², and in 2024 it has been holding at 1,050–1,330 AED/m². In Me’Aisem First, rates have been growing actively from 2023 to 2024: from 650–730 AED/m² in 2023 to 815–880 AED/m² in 2024.
5. Comparison of returns (ROI) for the building and the district, assessment of fair value
Calculated gross yield for studios in MYKA Residence:
– ROI_brutto (MYKA Residence, last 12 months): 1,248 / 14,837 ≈ 8.42%.
– ROI_brutto (Me’Aisem First, district): 983 / 16,005 ≈ 6.14%.
Taking into account initial costs (around 7% of the purchase price), the expected net yield (ROI_net) is:
– For MYKA Residence: ≈ 7.8% / 1.07 ≈ 7.9%.
– For the district: ≈ 6.14% / 1.07 ≈ 5.7%.
“Investment fair price” range for a 7–8% yield:
– For MYKA Residence: based on the rental rate, this is 1,248 / 0.08 = 15,600 AED/m² (maximum price at a target 8% yield), and 1,248 / 0.07 = 17,829 AED/m² (at a target 7% yield). The current average price in the building (14,837) is below this range, meaning the building is trading at a discount to its income potential (an investor can buy without needing an additional discount).
– For the district: 983 / 0.08 = 12,288 AED/m², 983 / 0.07 = 14,043 AED/m². However, the current adjusted district average price is already above the fair income-based range, which reduces the investment appeal for new buyers.
6. Conclusions on liquidity, demand level and outlook
– MYKA Residence offers one of the highest rental rates for studios in the district, while its purchase price is closer to the lower end of the current district market (a 7–8% discount to the district average), which makes the building particularly attractive for buy‑to‑let investors.
– The volume of transactions and contracts confirms stable demand; the statistics for both the building and the district show no weak years. Over the next 3–5 years, assuming rental demand and market exposure are maintained, no downturn is expected; some convergence of MYKA Residence prices towards the district’s average market level is possible.
– The building is an excellent fit for investors targeting “above market” yields with reasonably contained risk — thanks to its status as a new project and rental rates slightly above the district average.
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