ROI analysis of apartment in ONE AT PALM JUMEIRAH: DLD data and real deals

1. Definition of the area and data structure

Actual location: ONE AT PALM JUMEIRAH is confirmed as a building fully belonging to the Palm Jumeirah area. In DLD, 194 sale transactions are recorded under this building name (for the entire building), however over the whole period there is not a single transaction for an individual 1-bedroom apartment (1 b/r). In the rental database, the building is listed as a project (project_name_en); 43 unique rental contracts were found (but none of them of the 1 bedroom type). All further calculations for the building refer to aggregates for the entire building, while comparisons are made to residential “flat” apartments in the Palm Jumeirah area.

2. Liquidity: sales and rental volumes

From 2020 to 2025, active sales have been recorded in ONE AT PALM JUMEIRAH: the peak was in 2021 (73 transactions), followed by stable volumes of 13 to 48 deals per year up to the current year. Over the last 12 months (April 2023 – April 2024), transactions have also taken place, confirming strong demand even in the current market phase.

Rentals: volumes across the entire project are modest – on average a few contracts per quarter. However, this is due to the specifics of the premium segment, where most units are purchased for own use or rented out outside the mass long-term rental sector. By comparison, in Palm Jumeirah, the typical “apartment” segment generates thousands of rental contracts annually.

3. Price dynamics and current price levels – sales

ONE AT PALM JUMEIRAH (all transactions in the building, all unit types):

– The average sale price per m² over the last 12 months was 78,400 AED. The quarterly transaction range in 2024 varies widely – from 32,600 to 84,600 AED – reflecting both the specifics of very large and unique units and the limited sample size.
– Dynamics for 2021–2024: since late 2020, prices have almost doubled: the quarterly average rose from 34–44k AED per m² in 2020–2021 to 58–84k AED per m² in 2023–2024. At the same time, there is high deal-to-deal volatility.
– In the last completed year (April 2023–April 2024), the average price (70–78k AED/m²) significantly exceeds the area benchmark.

Palm Jumeirah (residential apartments):

– Area-wide average price per m² over the last 12 months: 33,900 AED, i.e. almost 2.3 times cheaper than in ONE AT PALM JUMEIRAH.
– Price growth from 2020 (17–18k AED/m²) to 2024 (28–33k AED/m²), or almost a doubling over four years.

4. Rental rate dynamics and current levels

ONE AT PALM JUMEIRAH:

– The average annual rental rate for the building over the last 12 months is 5,570 AED/m². This is an aggregate across all unit types (excluding “1 bedroom”); the data is taken for the entire building due to the lack of unit-type granularity.
– Dynamics: the quarterly average over the last 2 years has remained in a high band of 3,000–7,500 AED/m², with a significant spread – this reflects the individual conditions of unique units.

Palm Jumeirah (apartments):

– Area-wide average rate per m² over the last 12 months: 1,576 AED/m² per year.
– Dynamics: from 2020 to 2024, the average rate has doubled: from 700–800 to 1,400–1,600 AED/m² by now; volatility is noticeable only in individual quarters, with a large and stable sample.

5. Comparison “building vs area”

– Sales: ONE AT PALM JUMEIRAH is significantly more expensive than the area — the premium to the average price per m² is +131% relative to the area benchmark (78,400 AED versus 33,900 AED/m²).
– Rentals: similarly, the average rental rate in the building is ~3.5 times higher than in the area (5,570 versus 1,576 AED/m²/year).

6. Yield (ROI) and “fair price” for an investor

Gross yield (ROI):

– For the building: gross ROI over the last 12 months is 7.1% (5,570 / 78,400), which is close to the upper bound of the investment norm for the Palm and the premium segment, but with a high dispersion between individual deals and units (spread in both rental rate and price).
– For the area: gross ROI for apartments in Palm Jumeirah over the last 12 months is around 4.6% (1,576 / 33,900), which is typical for the mass segment of the Palm.

Taking into account typical transaction costs (7–8% entry), the expected net yield for the building is 6.6–6.7% (ROI_brutto / 1.07–1.08), and for the area 4.3–4.4%.

“Fair investment price range” (for a 7–8% yield):

– For ONE AT PALM JUMEIRAH: 69,600 – 79,600 AED/m². The current market level for the building (78,400 AED/m²) is right at the upper boundary of this range — a notable premium to the area, but consistent with a 7–8% yield.
– For the area: 19,700 – 22,500 AED/m², i.e. current market prices in the area are above the “fair” level for a 7–8% yield, but in premium buildings such a discount is practically not observed.

7. Outlook and conclusion

Liquidity in the building is high – ONE AT PALM JUMEIRAH has been actively bought and resold against the backdrop of a strong Palm market. Rental liquidity is low, but there remains a measurable segment of premium long-term tenants.

Price dynamics for both the building and the area are stable: the building commands a substantial premium, and its market level consistently exceeds the area. For an investor targeting a 7–8% ROI, entering ONE AT PALM JUMEIRAH at current deal levels allows achieving the desired yield without the need for a significant discount; however, the absolute investment size and market volatility of individual units require a deep, unit-specific investment case.

Overall, the asset is attractive for conservative investors focused on capital preservation and status (premium), rather than solely on absolute yield.