1. Definition of the area and data structure
Actual location: Sales for the building ROYALE RESIDENCE 1 (this is the exact wording in DLD) are recorded in the Al Hebiah Fourth area, within the Dubai Sports City master project.
For the analysis, a filter for 1-bedroom apartments (1BR, 1 b/r in DLD terminology) was used.
The DLD database records 64 transactions with 1-bedroom apartments in this building, which is sufficient to build robust statistics on price dynamics.
2. Sales market dynamics and price levels
Over the past 3 years, the number of transactions for 1-bedroom apartments has been fairly stable: 2022 — 4, 2023 — 16, 2024 — 23 deals.
The average price per square meter in ROYALE RESIDENCE 1 (1-bed units) over the last 12 months was about 8,645 AED/m².
For comparison, the average price in Al Hebiah Fourth over the same period for 1-bedroom apartments is significantly higher — approximately 11,512 AED/m².
Building dynamics: over the past 2 years, prices have increased from 5,600–7,000 AED/m² to 8,000–8,400 AED/m²; the current average level is close to 8,400–8,600 AED/m², but in the wider area over the last four quarters the growth has been more pronounced and is outpacing this particular building.
3. Rental market
The DLD_rent_contracts database contains no recorded leases for ROYALE RESIDENCE 1 or for the Dubai Sports City master project in the 1-bedroom segment or overall.
For the entire Al Hebiah Fourth area, rental data for residential apartments is available, with a large sample size (tens of thousands of contracts).
The average annual rental rate in the area (by unit size, with proper filters) over the last 12 months was approximately 896 AED/m².
Rental rate dynamics in the area: since 2022, rents have increased from roughly 520–580 AED/m² to the current 890–900 AED/m² (+70% over three years).
4. Comparison of the building with the area
Apartment prices in ROYALE RESIDENCE 1 remain noticeably below the area average (by roughly 25%), which gives the asset a certain price appeal in terms of entry level. However, there is no up-to-date data on rental rates specifically for this building.
5. Yield (ROI) assessment and fair price
Since there are no registered rental contracts even at a single-unit level for either the building or the Dubai Sports City master project, the calculation of actual investor yield is only possible using the average benchmark for Al Hebiah Fourth:
– Area gross ROI = average annual rent in the area (896 AED/m²) divided by the average price per square meter in the area (11,512 AED/m²) ~ 7.8% per annum (gross), which is strong for Dubai.
– If occupancy and rental rates for an apartment in this building were in line with the area, the building’s ROI would be noticeably higher (at least 10% per annum) due to the lower entry price. But without real contracts this cannot be asserted with confidence.
Adjusting for all transactional costs (around 7%) gives a net yield of about 7.3% for the area.
A fair price range for an investor targeting a 7–8% annual yield (based on the area) is from 11,200 to 12,800 AED/m² (calculation: rental rate of 896 AED/m² divided by target ROI of 7–8%). Actual transaction prices in ROYALE RESIDENCE 1 are significantly below this range.
6. Liquidity and overall conclusions
The building appears regularly in the DLD database, with transactions occurring almost every quarter, which indicates reasonable liquidity. The market in the area and the master project is very active and attracts both buyers and tenants. However, when purchasing an apartment in this building, one should be prepared to make additional efforts to find a tenant, as the building is not represented in the database as a popular long-term rental asset.
Summary:
– ROYALE RESIDENCE 1 is significantly cheaper than the wider area market in terms of purchase price.
– There is effectively no rental market for the building (at least in the official DLD Ejari statistics), so yield can only be estimated using area benchmarks.
– Overall, this is an asset with an attractive entry price, but a potential investor should factor in various operational and rental-liquidity risks specific to this building.
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