1. Definition of the area and data structure
Actual location: Palace Residences – North is located in Al Khairan First, within the Dubai Creek Harbour master project. The corresponding DLD database entry is verified — the project and the building match by name.
2. Transaction frequency and dynamics
A total of 169 sale transactions for one-bedroom apartments (1 b/r) in the building have been recorded. The main peak in 2023 was in Q1, when 102 transactions were completed; afterwards the pace slowed: in 2024–2025 there were on average 2–5 deals per quarter. There are a few isolated transactions dated 2026; however, it is possible these are off-plan deals with deferred registration.
3. Price dynamics and price level per m²
For Palace Residences – North, over the past 3 years one-bedroom apartments have shown a steady increase in the average price per m². In Q1 2023 the average level was around AED 22,300/m². By mid-2024 the average ticket had risen to AED 24,000–25,000/m². Over the last 12 months, the average price per m² stands at AED 26,500 based on actual DLD transactions (the building, 1BR units only).
For comparison, in Al Khairan First (all residential apartments) over the last 12 months the average sale price was about AED 25,300/m². Thus, Palace Residences – North is trading at a modest premium of 5–7% to the area benchmark.
The wider area dynamics confirm the overall growth trend: from AED 21,000–22,000/m² at the beginning of 2023 to AED 25,000/m² and above in 2024.
4. Rental data and yields
As of mid-2024, there are no registered rental contracts in the DLD database for Palace Residences – North or for the Dubai Creek Harbour master project, either for 1BR units or for other properties (not a single record). Most apartments are likely still in the handover phase, and the first rental wave has not yet started.
In Al Khairan First, rental activity is high: more than 18,000 contracts have been recorded for residential apartments of all types. Over the last 12 months, the average effective rental rate in the area was AED 1,445/m²/year across all apartments (no separate breakdown for 1BR). Quarterly dynamics from 2023 to 2024 show growth: from AED 1,100/m²/year to AED 1,300–1,400/m²/year.
Based on the area benchmark, yields in new buildings may be even higher than the average: new buildings/projects are usually leased out faster than older stock, and demand for quality products is strong.
5. ROI assessment and “fair” price range
– Current average price per m² in the building over the last 12 months: AED 26,500/m² (for 1BR).
– Area-wide average rental rate: AED 1,445/m²/year.
– Rough estimated yield (ROI) for the area: 1,445 / 26,500 ≈ 5.5% (gross).
– Taking into account transaction costs (7–8%), the effective yield (net ROI) will be around 5.1–5.2%.
A fair price range for an investor targeting 7–8% per annum: 1,445 / 0.08 = AED 18,000/m² (for 8%) and 1,445 / 0.07 = AED 20,600/m² (for 7%). In other words, to secure a 7–8% yield at current area rental levels, one needs to buy with a noticeable discount to the market — or wait for further rental growth and low competition in the early stages of the building’s operation.
An important nuance: all rental and ROI calculations are based solely on data for Al Khairan First (due to the absence of rental records for the building itself). Without actual contracts for the property, the achieved yield cannot be guaranteed; the figures provided are indicative for the new-build segment in this location.
6. Liquidity and outlook
Palace Residences – North enjoyed strong investor demand at launch: a large volume of transactions in 2023, followed by renewed activity during handover and the likely formation of a rental market over the coming quarters. Comparison with the wider area shows the asset trading at a premium, which is justified for new high-end buildings within major master projects. Average prices have grown by more than 20% over 3 years, while rental rates continue to rise in line with the development of Dubai Creek Harbour’s infrastructure.
Opportunities for an investor: a “buy-to-let” strategy is feasible, but a target yield of 7–8% will only be achieved if rental rates grow actively or if the purchase is made at a discount to prevailing DLD prices. For a long-term investor, the area’s prospects are strong — liquidity is high, and demand for new projects in Dubai Creek Harbour remains stable.
