ROI analysis of apartment in Skyz by Danube: DLD data and real deals — 12.12.2025 — 12.12.2025

1. Definition of the area and data structure

Actual location: according to DLD, SKYZ BY DANUBE is located in Al Barshaa South Third, within the Arjan master project. All further comparisons are made specifically with this area.

The DLD database records 988 transactions for the building, and over the past couple of years there has been a significant decline in transaction frequency (the peak of activity was in 2022 both in terms of number of deals and total volume), which is typical for a new development (the bulk of sales occurs at launch / construction completion). For rentals, there are no registered current contracts explicitly linked to SKYZ BY DANUBE in the database; analysis of average rental rates is carried out only at the area level (Al Barshaa South Third).

2. Transaction and price dynamics for the building

For the period from 2022 to 2024, the quarterly dynamics for one‑bedroom apartments is as follows:

– In 2022, the highest activity — more than 300 transactions for 1BR units.
– By 2023, the volume of new transactions dropped sharply; at the moment only short series of individual sales are registered, which is typical when completed units start entering the secondary market.

The average price per m² for 1BR in SKYZ BY DANUBE fluctuated around 12,700–12,900 AED/m² in 2022–2023, after which, from late 2023 – early 2024, there has been an increase to 14,000–14,600 AED/m². Over the last 12 months, the average price amounted to 14,597 AED/m².

3. Comparison with the area

Al Barshaa South Third shows the following dynamics for apartments (all transactions for residential “flat” units with an area of 20–130 m²):

– In 2020–2021, prices in the area were mainly in the range of 8,650 to 11,000 AED/m² (with noticeable volatility).
– In 2022–2023 — steady growth: in the range of 11,400–13,900 AED/m².
– In 2024 — the average price over recent quarters is 13,200–14,500 AED/m².

The average price per m² in the area over the last 12 months is 14,356 AED/m². Thus, the current price of SKYZ BY DANUBE is comparable with the area (+1.7% premium to the average transaction price in Al Barshaa South Third).

4. Rental and yield (ROI)

There are no rental contracts for SKYZ BY DANUBE registered in DLD, so it is not possible to calculate precise rental rates for the building and for 1BR units.

At the area level (Al Barshaa South Third), more than 50,000 rental transactions for apartments have been recorded. The dynamics of the average rental rate in the area over the past 3 years is as follows:

– In 2021–2022 — on average 570–660 AED/m²/year.
– In 2023, active growth begins: on average 700–750 AED/m²/year.
– From the beginning of 2024 — the rate has confidently exceeded 800 AED/m²/year and over the last 12 months has averaged 919 AED/m²/year across the area.

5. Yield calculation and “fair price”

Current yield in the area (benchmark for one‑bedroom units):

– Current ratio of rental rate to price (gross ROI): about 6.4% per annum (918.77 / 14,356.17).
– After accounting for one‑off entry costs (around 7%), the estimated net yield (ROI_net) in the area is 5.95–6.0%.

For those looking for a “fair entry price” targeting a 7–8% yield on the market:

– Fair price range for an investor: with rent at 919 AED/m² this is 11,488–13,128 AED/m². Current market transactions are above this range, which is explained by the period of peak demand and ongoing price growth. To enter an investment targeting a net 7–8% per annum, either a substantial increase in rental rates or a discount to the current purchase price is required.

6. Summary: liquidity, outlook, risks

– Liquidity for the building in the peak years (2022) was extremely high (mass off‑plan launch); now the property has moved into a stage of moderate secondary liquidity, and the share of new sales is decreasing.
– A stable rental core has formed in the area; rental demand for apartments remains high, with yields at about 6.0–6.4% for new deals at current market levels.
– From an investment perspective, the building looks like a reliable medium‑ and long‑term asset in a growing area, but counting on yields significantly above 6% is realistic only when buying at a discount to the current market price. The attractiveness of the asset increases if rental rates continue to grow.
– For 1BR units in SKYZ BY DANUBE there is no unique market premium: pricing is in line with the area, and in terms of return on investment the building roughly matches the average benchmark for Al Barshaa South Third.