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1. Definition of the area and data structure
Actual location: The building Palace Residences – North is confirmed in open DLD data as being located in the Al Khairan First area, within the Dubai Creek Harbour master project. The analysis is based precisely on these identifiers; no alternative localisations have been recorded.
2. Assessment of transaction volume and structure
For 1-bedroom apartments (1BR) in Palace Residences – North, 169 transactions have been registered. Within Al Khairan First, more than 22,000 transactions have been recorded, which confirms the scale and liquidity of the area.
The transaction dynamics for the building show that the main volume occurred in 2023 (especially in Q1); afterwards activity declined, which is typical for the completion of the off-plan phase and the start of handovers.
3. Sale price dynamics per square metre
In Palace Residences – North itself, the average price per sq.m for 1BR apartments over the last 12 months amounted to 25,851 AED. Across Al Khairan First for comparable 1-bedroom deals, the level is almost identical — 25,707 AED/sq.m.
Quarterly price growth for the building:
– In 2023 — a gradual increase from ~22,300 to 25,300+ AED/sq.m.
– At the beginning of 2024, prices were supported and/or grew to 24,600–25,300 AED/sq.m.
– Isolated transactions in 2025 show levels up to 27,000 AED/sq.m; however, the sample is still small, and such data should be treated with caution.
The area as a whole also shows consistent price growth: from ~18,000 AED/sq.m in 2022 to the current 25,700 AED/sq.m.
Average area values remain very close to the building, indicating no significant premium or discount for this asset compared with neighbouring projects.
4. Rental market analysis
As of today, not a single rental contract for Palace Residences – North (or for the entire Dubai Creek Harbour) has yet been registered in the open DLD statistics. This is a standard situation for new projects: landlords typically start renting out units with a lag of several quarters after handover.
At the same time, in Al Khairan First the volume of active contracts is very high (more than 18,000 over the entire period). The average rental rate across the district’s residential stock over the last 12 months is 1,443 AED/sq.m per year, with a clear acceleration in growth: during 2023 — from 1,020 to 1,220 AED/sq.m, and in the latest quarters of 2024 — around 1,400–1,490 AED/sq.m. This reflects very strong growth in demand for rental housing in the area.
5. ROI and pricing benchmark
– For the building, the average purchase price for 1-bedroom units over the last 12 months is 25,851 AED/sq.m.
– For the area, the average rent is 1,443 AED/sq.m/year.
This gives a gross yield (ROI) for an investor in the area of about 5.6% per annum (1,443 / 25,851), if we rely on the actual ratio confirmed by DLD. After accounting for all associated costs (roughly +7–8% to the entry price: taxes, commissions, registration, vacancy), the effective net yield will decline to about 5.2–5.3%.
From the perspective of a “fair price range” for a target yield of 7–8%:
– A deal price delivering 8% per annum — 1,443 / 0.08 = 18,038 AED/sq.m.
– For 7% — 1,443 / 0.07 = 20,614 AED/sq.m.
The actual price per sq.m is already significantly higher (25,851 AED for the building), meaning that to reach a 7–8% yield, either rental rates must grow (above the area average) or an additional purchase discount is required. The current price corresponds to real yields of 5–5.6% — below the targets of an aggressive investor, which is typical for new popular projects.
6. Liquidity and outlook
– The area is characterised by excellent liquidity, rapidly growing rental demand and a multi-year upward price trend.
– Transaction volume and fast absorption indicate low risk of a property remaining on the market for a long time.
– Over a 3–5 year horizon, strong rental demand is likely to continue, while yields for new buildings will most likely remain in the 5–6% range, unless there is a sharp jump in rental rates or an adjustment in entry prices.
7. Conclusions
– Palace Residences – North fully matches the area in terms of pricing and dynamics.
– No significant premium or discount to the area has been identified.
– A conservative investment strategy when buying at current prices implies a yield in the range of 5–5.6% (net 5.2–5.3%).
– Achieving 7–8% per annum will require a dual condition — strong rental growth or a discount at entry.
– Liquidity of both the area and the specific project is very high, but the rental cash flow for the building will only start to be recorded as it fills with tenants.
– The current situation is optimal for those who are betting on further growth in rental rates and prices in Dubai Creek Harbour.
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