1. Area definition and data structure
Actual location:
According to DLD, the building Palace Residences – North is located in the Al Khairan First area, within the Dubai Creek Harbour master project. All subsequent comparisons with the area and master project are based on the returned value of area_name_en.
Sample structure:
– For Palace Residences – North, 429 sale transactions have been recorded (all apartment types), of which for 2-bedroom apartments (2BR) the active sales period runs from 2023 to 2026, with the bulk in 2023–2024.
– For rentals in this project there are 19 contracts over the last 12 months; for 2-bedroom apartments there are almost no direct contracts, so the entire project sample is analysed.
2. Deal dynamics and price changes
Transaction frequency by year (2BR, Palace Residences – North):
– 2023: 131 transactions (peak volume — active sales phase of the project)
– 2024: 12 transactions
– 2025: 20 transactions (upcoming completions; deferred registration)
– 2026: 5 transactions (isolated entries into the register)
Average price per square metre dynamics (2BR, Palace Residences – North, quarterly):
– During 2023 the average price fluctuated between 19,300 and 22,200 AED/m².
– In 2024 there was further growth: up to 24,900 AED/m² (Q2), followed by a decline and fluctuations between 19,800 and 23,800 AED/m².
– In 2025 (a few transactions) — range of 22,900–25,900 AED/m².
– In 2026 a price of around 27,400 AED/m² is recorded for the first time (may be isolated, specific deals).
For comparison, in Al Khairan First (including the entire master project and comparable apartments):
– In 2020–2022 prices rose from ~15,000 to ~19,000 AED/m².
– From 2023 to 2024 there was a sharp quarterly increase: from ~21,000 to 27,000 AED/m² as of Q3 2024.
– The market volume is very large: thousands of transactions per quarter, indicating high liquidity in the area.
Average price per square metre over the last 12 months:
– BUILDING: Palace Residences – North 2BR — 25,155 AED/m² (21 transactions).
– AREA: Al Khairan First (all apartments) — 24,745 AED/m² (4,675 transactions).
3. Rental and yield
Building rentals (2BR):
– No direct contracts with the “2 bed rooms” filter were found over the last 12 months (0 contracts).
– For the entire Palace Residences – North building over the last 12 months (all types): average rental rate is 1,686 AED/m²/year (19 contracts).
Area rentals:
– For Al Khairan First (all apartment types, entire area): average rate is 1,448 AED/m²/year (4,819 contracts over 12 months).
Rental rate dynamics:
– For Palace Residences – North, data is only recorded in future quarters (possibly delayed registration): in Q4 2025 — 1,674 AED/m²/year, in Q1 2026 — 1,697 AED/m²/year.
– For the area there is consistently rapid growth: from 1,030 AED/m²/year in Q1 2023 to 1,397 AED/m²/year in Q4 2024 and >1,500 AED/m²/year in Q1 2026.
4. ROI and “investment fair price”
Current 12‑month indicators:
– Average sale price for the building: 25,155 AED/m².
– Average rent for the building: 1,686 AED/m²/year.
– ROI_brutto for the building: 6.70% per annum.
– ROI_brutto for the area: 5.85% per annum.
Adjustment for typical upfront costs (7% at entry):
– ROI_net for the building: 6.25% per annum.
– ROI_net for the area: 5.46% per annum.
Fair price range for an investor targeting 7–8% per annum:
– For the building: range of 21,075–24,090 AED/m² (at an average rent of 1,686 AED/m²/year).
– The current market price of the building is 4–19% above this range. In other words, the yield is slightly below the target 7–8%.
5. Comparison with the area and liquidity
Palace Residences – North (2BR) is currently trading at a mildly pronounced premium to the area (price difference 1.6%, rent difference 16.4%). Both sales and rental volumes are noticeably lower than the area average, which is explained by the recent handover of the project and the latest registration cycle. In the area, liquidity is extremely high and demand is stable, both at the off-plan sales stage and in the rental market. Further rental growth is expected, while secondary sale prices are likely to stabilise or slow their growth due to incoming competing projects.
6. Investor perspectives
For an investor in a 2BR in Palace Residences – North:
– liquidity will increase as occupancy grows and more units appear on the secondary market,
– current yield is slightly below the “investment‑optimal” 7–8% range,
– the relatively high price versus the area is offset by the prestige and premium status of the building,
– rental growth potential is likely to remain for 1–2 years, but over a 3–5 year horizon yields may decline as supply becomes saturated,
– for a buy‑to‑let strategy, negotiation on price or searching for isolated discounted deals is advisable.
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