ROI analysis of apartment in Ahad Residences: DLD data and real deals

Renat BashirovUpdated: 12 December 20254 min read


1. Area definition and data structure

Actual location: According to Dubai Land Department, Ahad Residences is located in Business Bay and belongs to the Business Bay master project.
For this building, 592 sale transactions for residential apartments have been recorded, of which 141 transactions are for studios (0-bedroom units). There are 69 registered rental contracts for studios in Ahad Residences.

ROI analysis of apartment in Ahad Residences: DLD data and real deals Continental Club Property LLC


2. Market liquidity and activity

The dynamics show high activity at the handover and primary sales stage: in 2022, 12–37 studio transactions per quarter were registered, while by 2023 activity had decreased to 4–6 transactions per quarter. Over the last 4 quarters (12 months), studio transactions continue to be recorded, and the secondary resale market has started to form.

For studio rentals, between 7 and 12 contracts were concluded in each quarter over the past year, which also indicates sustained demand and a gradual stabilisation of market turnover. Overall, both the building and the area demonstrate stable liquidity for studio apartments.

ROI analysis of apartment in Ahad Residences: DLD data and real deals Continental Club Property LLC


3. Sales price dynamics over 3 years

Average price per sq.m for studios in Ahad Residences:
– In 2022: from AED 18,700 to 21,000 per sq.m, with a smooth increase as the building was occupied.
– In 2023: growth to AED 22,300–25,500 per sq.m.
– In 2024: an average level of AED 21,800–27,400 per sq.m by quarter. The dynamics indicate continued growth with occasional corrections.
– Over the last 12 months: the average price reached AED 28,194 per sq.m (currency — AED).

For comparison, across Business Bay the average studio price over the last 12 months amounted to AED 27,844 per sq.m. Thus, studios in Ahad Residences trade at a small premium to the average market level in Business Bay.


4. Rental dynamics and levels

Average annual rental rate for studios in Ahad Residences:
– Over the last 12 months: AED 2,031 per sq.m per year.
– Quarterly dynamics fluctuate in the range of AED 1,830–2,300 per sq.m per year, indicating active demand and a segment of premium contracts.

Area benchmark for studio rentals (Business Bay): AED 1,590 per sq.m per year over the last 12 months, which is noticeably below the level of Ahad Residences.


5. Building vs area comparison, investment metrics

— Average purchase price for a studio in the building (12 months): 28,194 AED/sq.m
— Average rent in the building (12 months): 2,031 AED/sq.m/year
— Gross yield (ROI, excluding expenses): 7.2% per annum

For Business Bay:
— Average purchase price for a studio (12 months): 27,844 AED/sq.m
— Average rent (12 months): 1,590 AED/sq.m/year
— Gross yield: 5.7% per annum

Adjustment to “net” yield taking into account initial costs (taxes, fees, registration) of ≈7%:
— For the building: around 6.7% per annum (assuming initial costs of about 7% of the transaction value).
— For the area: around 5.3% per annum.


6. “Fair price range” for an investor

To achieve a 7–8% annual yield from rental income, studios in Ahad Residences should be acquired at:
— from 25,388 to 29,008 AED per sq.m (calculated based on the actual average monthly rent).
The current average purchase price (28,194 AED/sq.m) is at the upper end of the “investment fair” price range, while the premium to the area is justified by higher rents and strong demand in a new building. To reach 8%, either a lower entry price or further rental growth will be required.


7. Outlook and conclusions

Ahad Residences offers higher studio yields than the wider area, strong liquidity, and steady rental demand. Price and rental dynamics in the building show a premium to the area average and reflect the strong appeal of this new project among both tenants and buyers. Over a 3–5 year horizon, income potential appears stable, with possible moderate price adjustments in line with the broader Business Bay market.

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