ROI analysis of apartment in THE 118: DLD data and real deals

1. Definition of the area and data structure

Actual location: Residential building THE 118 is located in the Burj Khalifa area (according to DLD data), with the master project being DownTown Dubai. The DLD database query fully matched the project name.

There have been 67 recorded sales transactions for THE 118 over all years, so the property is indeed represented in DLD deals. For rentals, there are 78 lease contracts for this project (all years), but none of them are of the “2 bedroom” type (there are no direct 2-bedroom apartments for rent according to DLD data). Therefore, the subsequent rental analysis is given for the entire building.

2. Market activity and liquidity

The annual transaction frequency for THE 118 peaked in 2023 (21 deals) and 2024 (13 deals); over the last 3–4 years, activity has been high for an ultra-prime residential building with a limited sample size.

Rental deals in THE 118 are recorded several times per quarter — the building has sufficient liquidity and demand both for purchase and for leasing.

The Burj Khalifa area is one of the most active zones in Dubai in terms of transaction volume (hundreds of sales and thousands of contracts per quarter).

3. Price dynamics and price level per m² (sales)

For THE 118 (without breakdown by bedroom type, with filtering of erroneously high/low values and heavily understated areas):

– In 2020, the price per m² in THE 118 was approx. 24,100 AED.
– In 2022, it reached 29,600–37,000 AED per m² (variation by quarter).
– During 2023–2024, the building appreciated to 32,500–40,000 AED per m².
– The average price over the last 12 months for the building is 37,390 AED per m² (based on actual transactions, 7 contracts).

For comparison, the average purchase price of an apartment in the Burj Khalifa area over the last 12 months is about 26,245 AED per m² (4,500+ deals in the area, outliers excluded).

Conclusion: THE 118 consistently trades at about ~42% above the Burj Khalifa area average on a per‑m² basis.

4. Rental rate dynamics and levels

There are no rental contracts in DLD specifically for 2-bedroom apartments (they most likely do not exist in the building’s layout). Therefore, the average rent for the entire building is analyzed.

– Over the last 12 months, rental contracts in THE 118 show an average rate of 2,586 AED/m²/year (5 contracts, all unit types).
– For Burj Khalifa overall, the average rent for the last 12 months is 1,596 AED/m²/year (8,642 contracts).

THE 118 shows a premium to the average Burj Khalifa rent at roughly +62%. Rental demand in the building is extremely high for such a narrow ultra-prime segment.

5. ROI and investment assessment

– Annual gross ROI for the building over the last 12 months: 6.9% (2,586 / 37,390).
– Annual ROI for the Burj Khalifa area: 6.08% (1,596 / 26,245).

The actual yield of THE 118 is noticeably higher than the area average, but in the context of the wider market it is closer to the upper bound for the luxury segment in Downtown.

Taking into account standard upfront costs (7–8% for DLD, brokerage, etc.), the indicative net ROI for an investor in THE 118 will be around 6.4–6.5% per annum (we roughly divide the gross ROI by 1.08).

The “fair investment price range” for a 7–8% annual yield (at the current building rental level):

– For 7%: 2,586 / 0.07 ≈ 36,950 AED/m²;
– For 8%: 2,586 / 0.08 ≈ 32,325 AED/m².

The current market price level for THE 118 (37,390 AED/m²) is already at the threshold of the “fair range” for an investor targeting 7% per annum; to achieve an 8% target yield, a discount of about 13–14% from the current average transaction level is required.

For the Burj Khalifa area, the fair “investment price” range (at a rent of 1,596 AED/m²) is 19,950–22,800 AED/m² (THE 118 apartments are significantly above this band).

6. Conclusions

– THE 118 is a super-prime residential building with more premium positioning than most nearby competitors in Burj Khalifa.
– The average price per m² and rental rate are significantly above area benchmarks, confirming the project’s strong demand and uniqueness.
– Liquidity and demand are high — both in sales and rentals — but the number of contracts is a multiple lower than in the more mass-market complexes of the area.
– The actual investor yield at current purchase prices is 6.4–6.5% net per annum, which is very competitive for a top-tier Downtown complex.
– Entering at a price above the Burj Khalifa area average requires either accepting a lower yield or buying with a modest discount to reach the desired 7–8%.
– Over the next 1–2 years, the premium positioning and stable rates are likely to be maintained, especially for large apartments and penthouses.