ROI analysis of apartment in PRINCESS TOWER: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to DLD, the PRINCESS TOWER building is located in the Marsa Dubai area, within the Dubai Marina master project.
The database contains 618 registered sale transactions in this building, and the sample of rental contracts for the project exceeds 2,500 contracts over recent years, which allows for confident statistical conclusions on both the sales and rental markets.

2. Transaction activity and building liquidity

Over the past 2 years, the transaction volume in PRINCESS TOWER has remained consistently high. Dozens of sales are completed in the building every half-year, indicating a good level of liquidity. For the Marsa Dubai area, total transaction volumes are significantly higher, but even at the level of a single building the market is active, which makes PRINCESS TOWER attractive for investors in terms of both purchase and subsequent resale of an apartment.

3. Purchase price dynamics over 3–5 years

The average price per square metre in PRINCESS TOWER has shown a noticeable increase in recent years:

– At the beginning of 2023, the average level was around 12,000–13,800 AED/m².
– By mid-2024, the average price exceeded 16,000 AED/m².
– Over the last 4 quarters, the average level was 15,200–16,100 AED/m².

For comparison, in the Marsa Dubai area the average price per m² is significantly higher: around 29,500–31,000 AED/m² over the past 12 months.

PRINCESS TOWER is significantly cheaper on a per‑m² basis relative to its area — the difference exceeds 40%, which is likely explained by the specifics of the building itself (year of completion, height, mix of apartment types, etc.).

4. Distribution and dynamics of rental rates

In PRINCESS TOWER, over the past 12 months the average annual rental rate amounted to 1,067 AED per m², while in Marsa Dubai the comparable figure is 1,315 AED per m². Thus, the rental rate in the building is roughly 19% lower than the area average.

Rental dynamics for PRINCESS TOWER and the area:

– During 2023–2024 the building saw a gradual increase in the average rental rate: from 900 to 1,050–1,070 AED/m².
– In Marsa Dubai the growth was stronger: from 1,080 to 1,280–1,360 AED/m².

Contracts in PRINCESS TOWER are signed regularly and in virtually every quarter, confirming strong rental demand.

5. Yield (ROI) scenario and “fair price”

Market indicators based on the last 12 months:

– Average transaction price per m² (building): 16,253 AED/m².
– Average rent per m² (building): 1,067 AED/m².
– ROI (gross for the building): 6.6% per annum based on actual DLD data.

In Marsa Dubai the yield level is lower:
– Price per m²: 29,588 AED/m².
– Rent per m²: 1,315 AED/m².
– ROI (gross for the area): 4.4% per annum.

Adjusting for standard transaction costs (DLD 4%, broker 2%, other expenses 1–2%) reduces effective yield by 7–8%:
– ROI (net for the building): ~6.13% per annum (1,067 / (16,253 × 1.07)).
– ROI for the area: ~4.11% per annum.

For an investor targeting a yield of at least 7–8% per annum, the fair price range for the building should be:
– At 7%: no higher than 15,242 AED/m² (1,067 / 0.07).
– At 8%: no higher than 13,338 AED/m² (1,067 / 0.08).

The current price level in the building is above the “investment fair” price by roughly 6–18%, depending on the target yield (at 7–8% ROI). This means that to achieve the desired yield, an investor will either need to purchase an apartment below the current average price, or focus on rental optimisation (for example, short‑term rentals).

6. Comparison with the area and demand structure

In PRINCESS TOWER, liquidity is above the area average thanks to the large number of both sale and rental transactions. Purchase prices are significantly below the area average, while yields are noticeably higher. However, potential income in absolute terms is lower than in many new and more expensive projects in Marsa Dubai, where capital growth from price appreciation is stronger.

7. Conclusions and recommendations for the investor

– PRINCESS TOWER is a liquid building in a key Dubai Marina location with high sales and rental activity.
– Entry into the project is possible at a price roughly 40% below the area market, while gross yields are noticeably above the area average.
– To reach a 7–8% ROI, a modest discount to the average transaction price may be required.
– The asset is optimal for long‑term rental strategies and for investors seeking stable cash flow.
– In terms of capital growth (appreciation), the prospects here are more modest than in the area’s new projects — price growth dynamics in PRINCESS TOWER lag behind the wider area.
– Overall, the building is well suited for conservative investment and as a balanced option between risk and return.