ROI analysis of apartment in Skyz by Danube: DLD data and real deals — 12.12.2025 #13933 — 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.

Transaction volume and dynamics: the building shows a substantial volume of sales — over 1,000 transactions (1,018), with 1BR units transacted every year from 2022 to date.

Rental data: based on lease contracts, no valid 1BR contracts could be identified specifically for the building or the master project (Arjan), which is typical for new projects and those still under construction. The nearest relevant benchmark is the Al Barshaa South Third area, for which there is a large sample of current lease contracts (53,703 valid contracts).

2. Price and rental dynamics, liquidity

Sales (1BR, SKYZ BY DANUBE):

– Over the last 12 months, the average purchase price for 1BR units in this building was about 14,775 AED/m².
– Looking at the dynamics since 2022, the quarterly average price per m² ranged from ~12,300 to 14,600 AED/m², with an uptick in 2024.
– Number of 1BR transactions: peak activity was in 2022 (316 deals); volumes have since declined, but the building still demonstrates good liquidity.
– Overall, the building has shown growth in the average price per m² over the past 1–2 years, at a pace comparable to or ahead of the wider area.

Comparison with the area (Al Barshaa South Third, 1BR):

– The average price per m² in the area over the last 12 months was 14,172 AED/m², which is 4% lower than in the building itself. Previously (2022–2023), the average transaction level in the area was in the range of 9,700–13,400 AED/m², indicating steady growth in recent periods.
– The transaction volume in the area is consistently high (tens of thousands over the past 5 years across different projects).

Rent:

– There are no valid lease contracts recorded for the building itself or the master project; benchmarks can only be taken from the area level.
– The average annual rental rate per m² in the area over the last 12 months is 947 AED/m² (based on the full sample of apartments in Al Barshaa South Third).
– Rental dynamics: the area has seen a strong increase in rental rates — from 570–615 AED/m² per year (2020–2021) to 800–950 AED/m² per year in 2024. Rental growth has accelerated over the last five quarters.

3. Comparison of the building and the area, investment metrics

This building has high liquidity for its class, with a clear price trend; it trades at a premium to the area average (by 4%). This is typical for new projects within Arjan, where developers and early buyers price in a premium to the market due to modern specifications.

ROI (yield):

– It is not possible to calculate a “clean” ROI for the building based on DLD rental data, as there are no valid contracts.
– For the area (as a benchmark for an investor): with an average annual rental rate of 947 AED/m² and a purchase price of 14,172 AED/m², the gross yield is ~6.7% per annum (947 / 14,172).
– After accounting for transaction costs (approximately 7% of the purchase price), the net yield (ROI_net) falls to ~6.2–6.3% per annum.

Fair price range for an investor targeting a 7–8% annual yield:

– The investment‑fair price range for a target yield of 7–8% at typical area rents is 11,839–13,529 AED/m² (947 / 0.08 to 947 / 0.07).
– The actual price in the building (14,775 AED/m²) and in the area (14,172 AED/m²) is above the upper bound of this fair range — i.e., to achieve a 7–8% annual yield at typical area rents, a 5–15% discount to current DLD transaction levels would be required.

4. Outlook and liquidity conclusions

SKYZ BY DANUBE is among the more liquid new complexes in Arjan, with DLD price data confirming a confident increase in capital values over recent years. Despite the absence of valid rental contracts for this specific building, area benchmarks indicate strong demand and position the building within the mid‑market segment of Al Barshaa South Third. Over a 3–5 year horizon, the capital value outlook appears positive, and the premium to the area is likely to be maintained within a few percentage points. From a rental investor’s perspective, current price levels imply a yield below the desired 7–8% per annum range; to reach that level, either the purchase price must be lower or market rents must rise.

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