ROI analysis of apartment in Taraf 2 Residence: DLD data and real deals

Updated: 16 March 20264 min read


1. Definition of the area and data structure

Actual location: According to DLD, Taraf 2 Residence belongs to the Al Barsha South Fifth area, master project Jumeirah Village Triangle. The DLD database records 131 sales for this building.

Apartment type for analysis: 0BR = Studio
All calculations for the building and the area use a filter for the Studio category in line with the DLD structure.

ROI analysis of apartment in Taraf 2 Residence: DLD data and real deals Continental Club Property LLC


2. Sales: frequency and dynamics

Transaction frequency for Taraf 2 Residence:
– 2022: 53 transactions
– 2023: 50 transactions
– 2024: 22 transactions
– 2025: 5 transactions
– 2026: 1 transaction (most likely a late registration or adjustment; the main active period is 2022–2024)

Average price per m² dynamics for the building:
– Across all years only one aggregated value for studios is available: in Q2 2022 the average achieved transaction price was around AED 12,245/m² (based on 5 deals).

Average price per m² dynamics for the master project (Jumeirah Village Triangle, Al Barsha South Fifth, studios):
– In 2022 there was a sharp drop in the average price from AED 27–25k to ~AED 12k/m², followed by gradual recovery.
– 2023: fluctuations in the range of AED 12,700–19,900/m²; in Q2 2024 — around AED 18,500/m².
– Over the last 12 months the average price per m² in the area (studios) is AED 19,700/m² (1,597 transactions). There have been no transactions in the building itself over the last 12 months.

It is not possible to correctly aggregate the distribution of unit sizes and prices for the building over the last year due to the absence of studio transactions.

ROI analysis of apartment in Taraf 2 Residence: DLD data and real deals Continental Club Property LLC


3. Rentals: rates and dynamics

Rental data for studios in Taraf 2 Residence:
– Over the last 12 months, 3 rental contracts have been registered (all studios of 46 m², with annual rent of AED 47,000–49,000).
– Average rental rate for the building over the last 12 months: AED 1,196/m²/year.
– For the master project and the area over the same period, the average rental rate is AED 1,320/m²/year (613 contracts, a more representative benchmark).

Rental rate dynamics for the building:
– 2023: studio rent — around AED 1,043/m².
– 2024: AED 1,065/m².
– 2025 (new contracts): AED 1,196/m².

Rental dynamics for the area:
– From 2020 to 2022 — relatively low levels (AED 500–750/m²), followed by accelerated growth.
– 2023: from AED 790 to 991/m².
– 2024: in the first two quarters — AED 999–963/m².
– Q3–Q4 2024: AED 1,145/m².
– 2025: rates range from AED 1,134 to 1,450/m².


4. Building vs area comparison, ROI

Taraf 2 Residence (studios):
– There have been no sales transactions over the last 12 months; it is not possible to calculate a building-level ROI.
– Current area benchmark: sale price per m² — AED 19,700/m² (last 12 months), rent — AED 1,320/m² (613 contracts).

ROI for the master cluster (area, studios, last 12 months):
– Gross yield: 1,320 / 19,700 = 6.7% per annum.
– After accounting for initial acquisition costs (approximately +7% to the purchase price): 6.7% / 1.07 ≈ 6.3% per annum at entry.

Fair price range for an investor targeting a 7–8% ROI:
– Price per m² for 7%: 1,320 / 0.07 ≈ AED 18,860
– Price per m² for 8%: 1,320 / 0.08 ≈ AED 16,500

Comparison with the market:
– Market price per m² (area, transactions, last 12 months): AED 19,700
– To achieve a 7–8% yield, an investor will either need a 6–17% discount to the current price or rely on further rental growth.


5. Liquidity and outlook

– Sales: studio activity in Taraf 2 Residence was high in 2022–2023 and almost absent in 2024 — most likely the building moved from the primary (off-plan) phase to completed stock and left the first line of supply.
– The building is located in an area with pronounced rental growth. In the Al Barsha South Fifth studio market there are about 1.6k sales and 600+ rental contracts per year — high area-level liquidity.
– Rental rates are rising quickly, but buying a studio now delivers a net yield of only about 6–6.5% per annum (area benchmark).
– To reach the “Dubai investment standard” of 7–8% per annum, a discount to the prevailing area price or continued rental growth is required.
– The building is a new phase of the district, with stable rental demand. A cautious strategy is recommended — purchase based on current rental levels and the compressed yield spread relative to prices.

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