ROI analysis of apartment in Palace Residences – North: DLD data and real deals

1. Definition of the area and data structure

Actual location:
Palace Residences – North is located in the Al Khairan First area, within the Dubai Creek Harbour master development. This information is confirmed by direct DLD data.

Structure of transactions and contracts:
There have been 429 sale transactions registered for Palace Residences – North over the past 5 years. For rentals in this building, 19 contracts have been registered over the last 12 months. This allows us to draw conclusions about the building itself and compare it with the wider area.

2. Sales dynamics and structure

Over the last 12 months, 56 apartment sales have been completed in the building, with an estimated average price of 25,286 AED per m² (according to DLD data, including all unit types). For comparison, in Al Khairan First the average sale price for the same period is 24,881 AED per m² (4,873 transactions), which is 1.6% lower than in Palace Residences – North.

Quarterly dynamics:
– Over the past year, the average price per m² in the building has consistently remained in the 22,000–26,000 AED per m² range, with occasional peaks above this level.
– Over the last 2 years, the area has shown steady growth in the average price per square metre: 21,078 AED (Q1 2023) → 22,715 AED (Q1 2024) → 27,100 AED (Q3 2024; quarter not yet completed).

Volume and liquidity:
The transaction flow is sufficient to confirm high liquidity of the asset — 56 deals per year for the building and a wave-like but consistently high volume across the area.

3. Rental dynamics and structure

Rent in the building:
The average annual rental rate in Palace Residences – North over the last 12 months is 1,686 AED per m² based on 19 contracts. This is above the market level in the Al Khairan First area, where the average rate for the same period is 1,449 AED per m² (4,827 contracts).
Distribution of rates by quarters for the building in 2025–2026: 1,674–1,697 AED/m².

Rental dynamics in the area:
Rental rates in Al Khairan First have been steadily increasing over the last 2–3 years — from 760 AED/m² (early 2022) to 1,523 AED/m² (Q1 2026). Rent in Palace Residences – North consistently shows a premium to the area of around 15–17%.

Rental liquidity:
There are relatively few rental contracts in the building (typical for new developments where part of the stock is still being handed over or sold), but the overall market volume in the area is very high: more than 4,800 contracts per year.

4. ROI and fair price range for an investor

Actual ROI for the building and the area:
– Palace Residences – North (building): average ROI_brutto = 1,686 / 25,286 ≈ 6.7% per annum.
– Al Khairan First area: ROI_brutto = 1,449 / 24,881 ≈ 5.8% per annum.

Estimated net yield (taking into account initial costs of ≈7%):
– Palace Residences – North: ROI_net ≈ 6.7% / 1.07 ≈ 6.3% per annum.
– Al Khairan First: ROI_net ≈ 5.8% / 1.07 ≈ 5.4% per annum.

Fair price range for an investor (target yield 7–8% per annum):
– Benchmark price for the building: 1,686 / 0.08 = 21,075 AED/m² (for 8% ROI), 1,686 / 0.07 = 24,086 AED/m² (for 7% ROI).
– The current market price (25,286 AED/m²) is closer to the upper boundary, i.e. a purchase at the current price delivers a yield slightly below 7%. To achieve an 8% yield, a small discount to the current market average is required.

5. Final conclusions

– Palace Residences – North is a liquid new building in a prime area, trading at a premium to the Al Khairan First average and delivering higher rental yields.
– Price and rental growth in the area remains robust, but for a purchase focused on maximising yield, it is important to buy below the average transaction level (ideally in the 21,000–24,000 AED/m² range).
– The building is one of the most in-demand in Dubai Creek Harbour — transaction and contract volumes are high even against the broader market, and rental levels are confirmed by live DLD contracts.
– For owners: current market conditions will allow you to sell quickly within the range of average prices. For investors: it is reasonable to underwrite a 6–7% ROI over a 3–5 year horizon at current prices, or negotiate a discount to target 8% and above.