ROI analysis of apartment in Cordoba Palace: DLD data and real deals

1. Area definition and data structure

Actual location: According to DLD, the Cordoba Palace building is in the Nadd Hessa area, within the Silicon Oasis master project. A strict name match for Cordoba Palace in the database was used. The analysis focuses on 0BR (Studio) units.

Sales data: 44 studio transactions were found from 2020 to 2025, covering 5+ years, with sustained sales regularity (~9 deals over the last 12 months).
Rental data: DLD records more than 270 studio lease contracts from 2020 to 2026, with stable quarterly distribution and no gaps in activity. In Nadd Hessa overall, the apartment rental volume is huge (tens of thousands of contracts).

2. Sales dynamics and price levels

The average quarterly price of studios in Cordoba Palace increased from 6,500–7,500 AED/m² in 2020 to 11,400–12,000+ AED/m² over the last 12 months. Only meaningful transactions were used (price filter applied). Over the last 12 months, the average studio transaction price in this building was 11,470 AED/m² (9 deals).

Area benchmark: in Nadd Hessa the average apartment price over the last 12 months was 14,765 AED/m² (3,650 deals). This is 29% higher than in Cordoba Palace for studios. Within the building, price growth has been pronounced: from mid‑2022 to mid‑2024 there is a visible acceleration, with almost 50% deal‑to‑deal growth recorded.

Studio liquidity is high: regular sales with an even time distribution, averaging 2–4 deals per quarter.

3. Rental dynamics and levels

For Cordoba Palace:
— Average quarterly studio rent in 2020–2021: 530–650 AED/m²/year.
— 2022: 590–645 AED/m²/year.
— 2023: 720–870 AED/m²/year.
— 2024 (last 12 months): 995 AED/m²/year (44 contracts — strong statistical reliability).
Studio rents grew by almost 80% from 2021 to 2024.

Nadd Hessa (all apartments): the average rent over the last 12 months is 755 AED/m²/year. Rents in the building (995 AED/m²/year) are 32% above the area benchmark, illustrating a premium for a newer product and the strong demand for studios in Cordoba Palace.

4. Investment metric – ROI

Calculation for Cordoba Palace (studios, last 12 months):
— Average sale price: 11,470 AED/m².
— Average rent: 995 AED/m²/year.
— Gross yield (ROI before expenses): 8.7% per annum based on actual DLD averages.

Adjusting for entry costs (≈7% for all transaction expenses), the estimated net ROI is:
— 8.7% / 1.07 ≈ 8.1% per annum.

For Nadd Hessa overall: apartment ROI is around 5.1% gross and ~4.8% net.

5. Fair price range for an investor

At a target yield of 7–8% per annum, the range that can be considered fair by an investor is:
— Fair price for a Cordoba Palace studio = rent of 995 AED/m² / target yield of 7–8% = 12,438–14,214 AED/m².
— The actual Cordoba Palace price (11,470 AED/m²) is slightly below the lower bound of the fair range, indicating potential for further capital appreciation and strong investment appeal of studios in the building.
— For the area, the fair price (at a 7–8% yield on 755 AED/m² rent) is 9,440–10,785 AED/m², while the current market is above this level (14,765 AED/m²). Apartments at current Nadd Hessa prices look overheated from an investor’s perspective.

6. Conclusions on liquidity and outlook

Cordoba Palace shows solid market liquidity in both sales and rentals. The share of studios in the rental mix is significantly higher than the area average, and the yield based on DLD data exceeds both the broader market and benchmarks for comparable locations.

The current growth in prices and rents in the building maintains a balance of investment attractiveness, and even with strong capital growth the asset remains interesting for investors on a 3–5 year horizon, especially with a focus on studios. Rental demand is resilient, and studios represent a substantial share of the rental pool, as confirmed by the volume of concluded contracts.

As an investment, Cordoba Palace studios remain one of the most balanced options within Silicon Oasis/Nadd Hessa, combining stable liquidity, a reasonable entry price and strong yield growth.