Price Trends Analysis (2023-2025)
Overall Market Metrics
- 2023 Average Price per sqft: 1,580 AED
- 2025 Average Price per sqft: 1,760 AED (↑11.4%)
- Total Sales Value (2025): 2.2 billion AED
Property Type Comparison
| Property Type | 2023 Price (AED) | 2025 Price (AED) | Price Change (%) | Price per sqft 2023 (AED) | Price per sqft 2025 (AED) | Price per sqft Change (%) |
|---|---|---|---|---|---|---|
| Studio | 1,168,000 | 800,000 | -31.5% | 1,580 | 1,780 | +12.7% |
| 1-Bedroom | 1,350,000 | 1,200,000 | -11.1% | 1,580 | 1,760 | +11.4% |
| 2-Bedroom | 1,800,000 | 2,000,000 | +11.1% | 1,580 | 1,590 | +0.6% |
| 3-Bedroom | 1,900,000 | 2,050,000 | +7.9% | 1,580 | 1,350 | -14.6% |
Key Observations
- Divergent Price Trends: Larger units (2BR and 3BR) have appreciated in total value, while smaller units (studios and 1BR) have depreciated
- Price per sqft Anomaly: Despite total price depreciation, studios and 1BR units show increased price per sqft, suggesting market preference for premium smaller units
- 3BR Value Proposition: 3BR units show overall appreciation despite decreased price per sqft, indicating larger units are selling at more competitive rates per sqft
Rental Market Analysis
Overall Rental Metrics
- Average Monthly Rental: 7 AED per sqft (↑12.6% year-on-year)
- Total Rental Value: 454.7 million AED (↑14.0% year-on-year)
- Overall Average Yearly Rental: 64,632 AED
- Rental Volume: 6,435 transactions (↑4.9% year-on-year)
Rental Rates by Property Type
| Property Type | Annual Rental (AED) | Size Range (sqft) | Monthly Rental per sqft (AED) |
|---|---|---|---|
| Studio | 45,000-60,000 | 400-700 | 7-8 |
| 1-Bedroom | 68,250-130,000 | 691-811 | 7-10 |
| 2-Bedroom | 63,000-80,000 | 879-1,506 | 5-7 |
| 3-Bedroom | 77,000-105,000 | 1,399-1,892 | 4.5-5.5 |
Key Rental Trends
- Higher Yield for Smaller Units: Studios and 1BR apartments command higher rental rates per sqft
- Premium 1BR Demand: Significant variation in 1BR rental rates indicates premium segment demand
- Rental Growth: Overall 12.6% increase in rental rates year-on-year suggests strong rental demand
- Projected Growth: Financial forecasts predict rental costs will jump 20% between 2024 and 2025
ROI Analysis
Key ROI Metrics by Property Type
| Property Type | Price Appreciation (%) | Rental Yield (%) | Total ROI - 2 Years (%) | Annual ROI (%) | Payback Period (Years) |
|---|---|---|---|---|---|
| Studio | -31.5% | 6.6% | -22.5% | -11.3% | 15.2 |
| 1-Bedroom | -11.1% | 7.1% | 1.5% | 0.7% | 14.1 |
| 2-Bedroom | 11.1% | 3.6% | 19.1% | 9.6% | 27.8 |
| 3-Bedroom | 7.9% | 4.4% | 17.4% | 8.7% | 22.8 |
ROI Components Breakdown
ROI vs Payback Period
Investment Performance Analysis
2BR Apartments - Best Overall ROI
With 19.1% total ROI over 2 years (9.6% annually), 2BR apartments offer the highest returns, driven by strong price appreciation despite moderate rental yields.
3BR Apartments - Strong Growth Potential
With 17.4% total ROI over 2 years (8.7% annually), 3BR units offer solid returns with balanced appreciation and rental income.
1BR Apartments - Balanced Investment
With modest 1.5% total ROI over 2 years (0.7% annually), 1BR units offer stability through high rental yields (7.1%) that offset price depreciation.
Studios - Highest Risk
With -22.5% total ROI over 2 years (-11.3% annually), studios present significant investment risk despite high rental yields (6.6%), due to substantial price depreciation.
Payback Period Considerations
Smaller units offer faster payback periods (14-15 years) compared to larger units (23-28 years), but this advantage is offset by price depreciation risk.
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