ROI analysis of apartment in PEARL HOUSE I BY IMTIAZ: DLD data and real deals

1. District definition and data structure

Actual location: According to DLD, the building PEARL HOUSE I BY IMTIAZ belongs to the Al Barsha South Fourth district and the Jumeirah Village Circle master project.
Transaction data for this building is available in the database; however, there are no completed sales of two-bedroom apartments (2BR type). The main pool of transactions consists of studios and one-bedroom units. There are no valid “2 bed rooms” rental records for this specific building in DLD_rent_contracts. Therefore, all final calculations will be made at the Al Barsha South Fourth district level for two-bedroom apartments.

2. Demand and liquidity analysis

Over the entire observation period, more than 67,000 transactions with residential apartments (units/flats) have been recorded in Al Barsha South Fourth, and the data for two-bedroom units is sufficient. More than 120,000 rental contracts have been registered, which indicates high turnover and steady interest from both tenants and buyers in this segment.

3. Price dynamics for two-bedroom apartments (2BR) in the district

Over the last 12 months, the average sale price per square metre for a two-bedroom apartment in Al Barsha South Fourth was 12,874 AED/m².
Looking at the last 12 quarters (3 years), the average price per square metre by quarter (for 2BR) is as follows:
– Range of values: approximately from 10,588 AED/m² (lowest quarter) to 13,257 AED/m² (highest quarter).
– Last 4 quarters (from most recent backwards): 12,975, 13,069, 13,257, 12,616 AED/m² — there is a moderate positive trend compared with 2–3 years ago, but growth is not sharp.

This indicates a stable market with moderate growth potential and low volatility.

4. Rental dynamics for two-bedroom apartments (2BR) in the district

Over the last 12 months, the average annual rental rate for 2-bedroom apartments in the district (Al Barsha South Fourth), converted to a rate per square metre, amounted to 873 AED/m².
In quarterly dynamics (last 12 quarters), values fluctuate in the range of about 681–1,396 AED/m² per year, with average levels in most quarters at 700–900 AED/m². There are spikes above 1,200 AED/m²; however, these peaks are not sustainable for the market and are likely associated with one-off deals.

5. Comparative analysis: building vs district

Since there is no data on transactions with two-bedroom apartments in PEARL HOUSE I BY IMTIAZ and no rental records for this type, the comparison is based exclusively on the Al Barsha South Fourth district.
Accordingly, all estimates of market sale and rental levels for 2BR units reflect the average situation across the district.

6. Return on investment (ROI) assessment

Based on the average figures for the last 12 months in the district (Al Barsha South Fourth, 2BR):
– Average rental rate: 873 AED/m²/year
– Average purchase price: 12,874 AED/m²

Gross yield calculation (district-level ROI_brutto): 873 / 12,874 ≈ 6.8% per annum.

Adjustment to net yield (ROI_net), taking into account acquisition costs at around 7%:
– Effective net yield: 6.8% / 1.07 ≈ 6.35% per annum

7. Fair investment price

If we target an investor yield of 7–8% per annum, then the fair purchase price range at the current rental level will be:
– Lower bound (8% ROI): 873 / 0.08 = 10,912 AED/m²
– Upper bound (7% ROI): 873 / 0.07 = 12,471 AED/m²

The market transaction price of 12,874 AED/m² is at the upper end of this range, in fact closer to the 7% yield threshold. This means that to achieve 8% per annum, an investor should aim to buy at a significant discount to the current average market price.

8. Conclusions and recommendations

At the time of the request, PEARL HOUSE I BY IMTIAZ is characterised by the absence of confirmed 2BR transactions and rental contracts of this type in the DLD database. The analysis therefore uses district-level data.
District liquidity is high: both sales and rentals of two-bedroom apartments are taking place in large volumes — there is strong demand from both buyers and tenants.
Prices and rents in Al Barsha South Fourth are stable, without sharp spikes or drops over the past 3 years. The trend is rather moderately positive.
The current market yield level (return on investment before expenses) is about 6.8% per annum, and net of expenses — about 6.3%. To achieve a yield above 7% per annum, it is necessary to buy below the district’s average market price.
There is no independent yield data for the building itself; fair assessments can only be made at the district market level for comparable apartments.
For an investor or seller, this means there is no local premium or discount for the building relative to the district for two-bedroom apartments, and the yield is close to the average market level for this segment in the location.
Over a 3–5 year horizon, the district can be viewed as investment-resilient, but one should not rely on rapid price growth: the forecast is for moderate growth or stability with continued strong liquidity.