1. Definition of the area 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. The building name matches fully; additionally, the possibility of filtering by master project and area was verified.
2. Number of transactions and liquidity
For two-bedroom apartments (2 bed) in this building, 168 transactions are recorded in the DLD database. This is a solid volume for a new development and indicates good initial liquidity. Over the past 12 months, the building has shown a notable number of registrations, which is confirmed by the quarterly dynamics.
3. Dynamics and level of sale price per m²
In 2023–2024, the average sale price per m² for two-bedroom apartments in the building fluctuated between 19,200 and 25,000 AED/m² by quarter. The average for the last 12 months for the building is 25,155 AED/m². At the same time, in Al Khairan First (typical unit, residential, flat), the average level for the same period is 24,642 AED/m², meaning Palace Residences – North is selling at roughly 2–3% above the district’s average market level, which is normal for a modern waterfront project within Dubai Creek Harbour.
The dynamics over the last 3–4 years across the entire area show steady growth: from 15,000–18,000 AED/m² in 2020–2022 to 22,000–24,500 AED/m² in 2023–2024. Quarterly dynamics show no significant drawdowns. Palace Residences – North itself demonstrates prices above the district average, especially for new 2024 contracts.
4. Rental data and yield
For Palace Residences – North itself, there are no registered rental contracts for two-bedroom apartments in the DLD database (for the entire history and for the last 12 months). This situation is typical for new developments: most units are at a late construction stage or have only recently been handed over, so the actual rental market for the building is yet to form.
For the Dubai Creek Harbour master project, there is also no rental data for two-bedroom apartments over the last 12 months. Therefore, the main benchmark is the figures for Al Khairan First for all apartments (Residential, Flat): the average annual rental rate per m² over the last 12 months in the area is 1,448 AED/m². Over the last 3 years, rental rates have grown steadily: from 700–900 AED/m² in 2021–2022 to 1,200–1,400 AED/m² in the current period. Liquidity is high — more than 18,000 rental contracts have been recorded in the area, providing a sufficient market for analysis.
Yield (ROI) calculation:
– Average sale price per m² for Palace Residences – North (last 12 months): 25,155 AED/m².
– Average rent per m² (last 12 months, Al Khairan First): 1,448 AED/m².
– Direct gross ROI based on the current area market: 1,448 / 25,155 ≈ 0.0576 or 5.8% per annum.
– Adjusted net ROI taking into account entry costs (7–8%): 0.0576 / 1.07 = 5.4% per annum.
5. Fair investment price range
To achieve a yield of 7–8% per annum, the fair investment price for a two-bedroom apartment (calculations based on Al Khairan First) is:
– Fair price at 8%: 1,448 / 0.08 ≈ 18,100 AED/m²
– Fair price at 7%: 1,448 / 0.07 ≈ 20,700 AED/m²
The current actual market price for the building (~25,155 AED/m²) is 20–30% above the “investment-fair” range based on real rental contracts in the area. To reach a target yield of 7–8% per annum when buying at current market levels, either a price correction downward is required, or a concurrent increase in rental rates and liquidity over the next few years.
6. Conclusions on investment prospects
– Palace Residences – North is a liquid, in-demand asset with a high density of primary market transactions, predominantly from the developer.
– Prices for two-bedroom apartments are 3–5% above the district average, which is normal for new branded and waterfront positions.
– The building’s rental market has not yet formed (no contracts in DLD data), so current investment metrics (ROI, payback) can only be assessed at the area level, where yields of 5–6% are typical for a premium-segment new build.
– For an investor targeting 7–8% per annum, it is reasonable to look for a discount to the market (18,100–20,700 AED/m²), or to focus on longer investment horizons, counting on price and rent growth as the area and the building fill up.
– Rental market liquidity in the area is very high, and demand for Dubai Creek Harbour and waterfront locations is steadily increasing.
Overall summary: The asset is attractive for those who value liquidity and status, but at current market purchase prices the yield is lower than in more mature, infrastructure-rich locations with an established rental stream. A quality investment is possible either with a lower entry price or on a long-term horizon, anticipating rental rate growth.
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