ROI analysis of apartment in Royale Residence 1: DLD data and real deals — 06.12.2025

1. Definition of the area and data structure

Actual location: according to the DLD database, the building ROYALE RESIDENCE 1 is located in Al Hebiah Fourth, within the Dubai Sports City master project. Studios (Studio/0BR) were used for the analysis, as this category has a sufficient sample of both sales and rental contracts.

For studio apartments for sale in ROYALE RESIDENCE 1, the DLD database records 179 transactions since 2020; for rentals (entire building) there are over 1,000 contracts from 2020 to 2025, of which 111 are valid over the last 12 months.

Overall, the market is highly liquid both for sales and rentals: the annual and quarterly statistics are sufficient for analysis at both building and area level.

2. Transaction dynamics and liquidity

ROYALE RESIDENCE 1 records a significant annual volume of studio sales:
2020 – 5 deals,
2021 – 8,
2022 – 10,
2023 – 14,
2024 – 11 (as of Q3),
2025 – 23 (including deferred registrations).

Thus, liquidity for studios in ROYALE RESIDENCE 1 is stable and the building is fully marketable, which is also true for rentals — 100+ studio rental contracts per year.

3. Price and rental dynamics (5 years)

Studio sales, ROYALE RESIDENCE 1. Average price per m²:
2020: 6,400–6,600 AED/m²,
2021: 6,200–7,200 AED/m²,
2022: 6,100–7,400 AED/m²,
2023: growth to 7,100–9,100 AED/m² (by quarter),
2024: 9,200–10,800 AED/m²,
2025: 9,600–11,900 AED/m².

A clearly pronounced upward trend has been visible since 2022.

Al Hebiah Fourth market (studios):
2020–2022: volatility in the 7,400–10,900 AED/m² range.
2023–2025: noticeable acceleration of growth — up to 14,000–20,000+ AED/m² (with a particularly sharp jump in 2024).

At the same time, the building itself is currently (last 12 months) averaging 11,059 AED/m² for studios, which is below the area average (14,610 AED/m²). In other words, the asset is trading in a lower price corridor versus the wider area, despite the overall growth.

Studio rentals in ROYALE RESIDENCE 1 — average annual rate per m²:
2020: 540–675,
2021: 510–555,
2022: 590–635,
2023: 652–836,
2024 (Q1–Q4): significant growth to 1,060 AED/m² in certain quarters,
2025: 940–1,115 AED/m².

Over the last 12 months the building averages 983.8 AED/m²/year (111 contracts), while the area averages 981 AED/m²/year (3,460 contracts). The dynamics are almost identical, meaning the building is not underperforming the area in rental terms.

Since 2022, rents have been growing steadily, with acceleration in 2023–2024.

4. Distribution of unit sizes and prices

Studio sizes are typically 28–38 m², occasionally 14 m² or up to 70 m². The price range per m² is from 5,100 to 15,600 AED/m²; most sales fall within 8,000–13,500 AED/m². There are isolated deals above 15,000 AED/m², but these are more of an exception.

5. Comparison of current sales and rental levels (12 months)

ROYALE RESIDENCE 1 (studios):
Average sale price per m² (12 months) — 11,059 AED (24 deals).
Average rent per m²/year (12 months) — 983.8 AED (111 contracts).

Al Hebiah Fourth (studios, area):
Average sale price — 14,611 AED/m² (1,285 deals).
Average rent — 981 AED/m²/year (3,460 contracts).

Thus, ROYALE RESIDENCE 1 is more affordable in terms of sale price (−24% vs. the area), while its rental rate is almost at the area average.

6. ROI for an investor

ROI calculation based on 12‑month averages:

Building (studios):
Annual rent/price — 983.8 / 11,059 ≈ 8.9% (ROI_brutto, excluding transaction costs).

Area (studios):
981 / 14,611 ≈ 6.7% (ROI_brutto).

If we factor in all standard transaction costs (≈7%), the effective yield decreases to:
ROI_net_home ≈ 8.3%
ROI_net_area ≈ 6.3%

7. “Fair price range” for a target yield of 7–8%

For the building, using the rental benchmark of 983.8 AED/m² to achieve a 7–8% ROI:
Target price range per m²: 12,300–14,050 AED.

The current average transaction price in the building (11,059) is below this range, meaning that buying a studio now offers a potential yield above 8% per annum, even amid strong competition within the area.

For the area, the “investment‑fair” price range for studios is 12,300–14,000 AED/m², while the actual market price is 14,610 AED/m². This indicates an overheated market — to reach a 7–8% ROI, a 5–10% discount to prevailing area transaction levels is required.

8. Conclusions and outlook

ROYALE RESIDENCE 1 remains a liquid option with solid demand. In terms of sales, the building is currently significantly cheaper than the area average, while in rental terms it is almost on par with the wider market. At current prices, investor ROI is more attractive than for the area as a whole and clearly exceeds the typical market benchmark of 7–8% per annum. This yield level is driven by the fact that the studio market in the area is overheated — buildings like ROYALE RESIDENCE 1 can be of interest to investors looking to lock in an income‑generating position.

Rental dynamics are positive and demand is stable. Against the backdrop of overall growth in both transactions and rents, it is reasonable to expect continued liquidity and a competitive edge for this building versus the broader market.

A potential price adjustment for a future investor would only be likely in the event of further rapid growth in area‑wide sales; at present, the market provides a pricing “cushion” for entering projects such as ROYALE RESIDENCE 1. The calculated ROI, including all standard costs, confirms the investment rationale of this asset compared with the surrounding area.