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1. Definition of the area and data structure
Actual location: According to DLD, the building SKYZ BY DANUBE is located in Al Barshaa South Third and belongs to the Arjan master project. The DLD database records more than 1,000 transactions for this building, which makes it possible to analyse this specific asset and compare it with the wider area.
Type of units analysed: Studio (0BR), i.e. studios.
2. Transaction volume and dynamics
Sales volume for the building: Since 2022, more than 1,000 transactions have been registered in SKYZ BY DANUBE, with the peak in the first year of sales (2022), followed by a gradual decline in the number of deals. Over the last 12 months, around 87 transactions have been recorded, which is typical for the stabilisation of registrations after the handover of an off-plan project.
Average price per square metre dynamics (studios):
– In 2022, the average price per m² in the building fluctuated between 13,300–13,900 AED.
– In 2023, the range was 13,486–14,007 AED.
– In 2024, there was a notable increase: averages rose from 14,522 to 15,467 AED per m².
– Over the last 12 months, the average price for studios in this building amounted to 16,315 AED per m².
For comparison, in Al Barshaa South Third the price dynamics for studios were:
– From 2022 to 2023, the area’s averages were below the building’s and ranged from 11,512 to 13,376 AED per m².
– In 2024, the average price in the area for studios was about 14,388–15,256 AED per m².
– Over the last 12 months, the average price in the area stands at 15,663 AED per m².
SKYZ BY DANUBE is trading at a 3–4% premium to the area averages.
3. Rental market
Studio rentals in the building itself: According to DLD, 11 rental contracts for studios in SKYZ BY DANUBE were registered over the last 12 months. The average annual rate was 1,558 AED per m².
In Al Barshaa South Third, a high rental volume is recorded (more than 17,000 studio contracts), while the average rental rate over the last 12 months is 1,086 AED per m². Thus, this building shows a premium of more than 40% to the area in terms of income per square metre for studios.
Quarterly and annual dynamics for studio rentals in the area:
– 2022 — around 640–760 AED/m².
– 2023 — growth to 770–880 AED/m².
– 2024 — stabilisation in the range of 950–1,017 AED/m².
– Over the last 12 months — 1,086 AED/m².
4. Comparison of purchase and rental yields (ROI)
SKYZ BY DANUBE (studios):
– Average sale price per m² over the last 12 months: 16,315 AED
– Average annual rent per m² per DLD over the last 12 months: 1,558 AED
For the area:
– Average sale price per m² over the last 12 months: 15,663 AED
– Average annual rent per m²: 1,086 AED
Yield calculation (ROI):
– For the building: Gross yield (brutto ROI) is about 9.6% per annum (1,558 / 16,315).
– For the area: Gross yield is 6.9% per annum (1,086 / 15,663).
Adjustment for acquisition costs (7% entry costs; effective net yield):
– For the building: ROI net ≈ 9.6% / 1.07 ≈ 9.0%.
– For the area: ROI net ≈ 6.9% / 1.07 ≈ 6.5%.
Fair price range for a 7–8% annual yield in the building:
– For a target yield of 7–8%, the purchase price of a studio in SKYZ BY DANUBE, based on the average rent, should be in the range of 19,475–22,257 AED per m² (which is noticeably higher than the current average transaction price).
– For the area — 13,575–15,514 AED per m² (comparable to the current area price).
This indicates that actual transactions in SKYZ BY DANUBE are currently taking place at a price level that delivers a yield more attractive than 7–8% with real rental performance.
5. Key conclusions and recommendations
– Liquidity and demand: The high transaction volume confirms strong interest in the project from investors and end-buyers, but the main wave of deals has already passed (handover stage).
– Price dynamics: Over three years, the average price per m² for studios has increased by almost 20%.
– Rental income: The premium to the area is the main driver of the higher yield in this building: based on DLD-registered rental contracts, the actual figures confirm a gross ROI above 9% per annum, which is higher than typical bank deposit rates and the average market levels in the area.
– Outlook: Over a 3–5 year horizon, some slowdown in price growth and a reduction in the potential for further outperformance can be expected, given the gains already realised; however, yields remain high under current conditions if the unit is rented out at the rates recorded in DLD.
– Fair price for an investor: Actual transaction prices already allow investors to achieve 7–8% per annum or more, as the “income price” range is above current levels — this means that an apartment in this building is primarily suitable for generating stable rental income, rather than only for quick resale with rapid capital appreciation.
