ROI analysis of apartment in Prime Residency 3: DLD data and real deals

1. Definition of the area and data structure

Actual location: according to DLD, the Prime Residency 3 building is fully attributed to the Jabal Ali First district and the Al Furjan master project. In the DLD transaction database, there is a large number of recorded sales (over 450 deals) for this building and the Studio (0BR) unit type, which allows for a confident analysis not only of the building itself, but also for benchmarking it against the entire Al Furjan master project.

2. Liquidity and transaction volume

Liquidity in Prime Residency 3 is very high: since 2021, the transaction volume for studios has remained substantial — from 10 to 100+ deals per quarter are regularly recorded, with particularly active sales in 2021–2022. These figures indicate strong demand and solid recognition of the project among buyers in its segment. Rental liquidity is confirmed by the large number of active contracts (over 200 new studio lease agreements in the last year for this building alone).

3. Dynamics of sale prices and rental rates (quarterly breakdown)

— For Prime Residency 3:
– The average price per square meter for studios in 2021–2022 fluctuated around 11,300–11,900 AED/m².
– In 2023 there was an increase, with a particularly notable jump in the second half of the year to 12,900–13,200 AED/m².
– Over the last 12 months, the average transaction price reached 15,191 AED/m² (growth of more than 15% compared to the previous year).
— For Al Furjan overall (studios):
– The trend is similar: in 2021–2022 the average price was 11,100–11,700 AED/m², in 2023 around 11,500–13,000 AED/m², and over the last year 14,501 AED/m².
– Growth rates in Prime Residency 3 slightly outpace the master-project average.

Rent according to DLD data:
— For Prime Residency 3 itself, the average actual annual rent for studios over the last 12 months is 1,373 AED/m².
— For Al Furjan, the average for studios across the master project is 1,277 AED/m² over the same period.
— In 2024, rents in Prime Residency 3 maintain a leading position relative to Al Furjan in terms of psm.

4. ROI, fair price range, recommendations

Gross yield (ROI) for the building at current prices:
— ROI_brutto (Prime Residency 3): about 9.0% per annum based on actual DLD transactions over the last 12 months.
— ROI_brutto (Al Furjan, studios): about 8.8% per annum.
— After adjusting for standard entry costs (~7–8%), the indicative net yield (ROI_net) for the building is 8.3–8.4% (above the target for most investors in the Al Furjan studio segment).
— The fair price range for an investor targeting a 7–8% annual yield in Prime Residency 3 is approximately 17,200–19,600 AED/m², meaning the current market offers an excess return to investors buying at the average prices of the last 12 months.

5. Conclusions and outlook

— Prime Residency 3 is one of the most liquid assets among new studios in Al Furjan, with active turnover on both the primary and secondary markets, stable rental demand, and notable price growth.
— The actual yield for this building exceeds even the upper bound of the standard target range for the mass-market Al Furjan segment, confirming both its investment appeal and its real rental potential.
— The area as a whole also shows a strong upward trend, although slightly less pronounced than for the building under analysis.
— Over the next 1–2 years, the potential for further growth is constrained by the fact that the current pace of price appreciation (over 15% per year) is unlikely to be sustainably repeated; however, liquidity, rental demand, and the pricing benchmark support the continuation of attractive yield levels without the need for discounting from current market prices.
— The fair price range for yield-focused investors is above the current market, indicating no pressure for discounting and the ability to hold firm on price in both sale and lease negotiations.