1. Definition of the area and data structure
Actual location: according to DLD, the residential building AL FOUAD is located in the Jabal Ali First district and is part of the Al Furjan master project.
For AL FOUAD, the DLD database records 171 sale transactions from 2020 to date. Rental data are identified via project_name_en = ‘AL FOUAD’; for studio (0BR) rentals there are 91 valid contracts from 2020 onwards.
2. Sales and price dynamics analysis
Transaction frequency by year:
– 2020: 45 transactions
– 2021: 22 transactions
– 2022: 27 transactions
– 2023: 40 transactions
– 2024 (incomplete): 23 transactions
Peak activity was in 2020 and 2023. Deals have continued over the last 12 months, indicating sustained interest in this stock of units (studios).
Quarterly dynamics of the average price per square metre for studios (0BR) in AL FOUAD:
– In 2020–2022 studio prices ranged from 5,500 to 9,100 AED/m², with a local low in Q2–Q3 2021.
– In 2023 the quarterly average price increased to around 8,200–8,900 AED/m².
– Over the last 12 months (based on 4 transactions) the average studio price in AL FOUAD stands at 10,430 AED/m², confirming an upward trend.
– The latest contracts in 2024 and 2025 show stabilisation above 10,000 AED/m².
Across Jabal Ali First, the average price for apartments (all sales filtered by property type “Flat”) over the last 12 months is 18,161 AED/m², based on a total of 6,232 transactions. Typical quarterly dynamics: since 2023 there has been steady growth in the average price from around 9,000–12,000 AED/m² in 2023 to 12,000–13,600 AED/m² in 2024, with local peaks reaching 19,000–21,400 AED/m² by the end of 2025 across the district (for transactions with dates set in the future).
Thus, in terms of studio prices, AL FOUAD is significantly cheaper than the district average (~10,400 vs ~18,200 AED/m² over 12 months).
3. Rental analysis: levels and dynamics
For studio (0BR) rentals in AL FOUAD:
– Valid rental contracts were signed from 2020 through 2026.
– Quarterly dynamics: in 2020–2023 the average rate ranged from 510 to 730 AED/m²/year (based on 4–8 contracts per quarter).
– Over the last 12 months the average studio rent in AL FOUAD is 892 AED/m²/year (10 contracts).
– In recent quarters (including early 2025) there has been a substantial increase, with values exceeding 900–1,040 AED/m²/year.
This clearly confirms an increase in the spot rental rate for the property.
For Jabal Ali First, apartment (Flat/Apartment) rentals over the last 12 months:
– The district-wide average rate is 874 AED/m²/year (more than 21,000 contracts).
– Quarterly dynamics: from 2023 to 2025 the average rent increased from 670–700 to 880–970 AED/m²/year.
The rental rate for studios in AL FOUAD is almost identical to the district average, slightly exceeding it in the most recent periods.
4. ROI and investment fairness
– Average gross yield (ROI brutto) for a studio in AL FOUAD over the last 12 months: 892 / 10,430 ≈ 8.6% per annum.
– For Jabal Ali First: 874 / 18,161 ≈ 4.8% per annum.
Adjusting for entry costs (taxes, commission, registration): for AL FOUAD this implies a net yield (ROI netto) of 8.6% / 1.07 ≈ 8.0%. For the district, net ROI is ≈ 4.5%.
Investment fair-value price range (for a target yield of 7–8% per annum) for a studio in AL FOUAD:
– 7%: 892 / 0.07 = 12,743 AED/m²
– 8%: 892 / 0.08 = 11,150 AED/m²
The actual current sale level (10,430 AED/m²) is at the bottom of this range. Therefore, the current price level for studios in AL FOUAD is broadly aligned with investor interest at a 7–8% yield. No additional discount to the market is required, and the potential rental premium from tenants justifies current prices.
5. Key conclusions for AL FOUAD and Jabal Ali First
– The building’s liquidity is very high: sales and rentals occur regularly, with DLD recording a stable flow of transactions every year.
– Sale price dynamics in AL FOUAD lag behind the overall growth rate in Jabal Ali First, making AL FOUAD attractive for the budget segment.
– Studio rental rates in AL FOUAD are currently in line with the district market (or even slightly above it).
– Current gross ROI for AL FOUAD is around 8.6%, which is 60–90% higher than the district average yield.
– For an investor targeting a long-term yield of 7–8%, purchasing a studio in AL FOUAD appears well-balanced; no additional discount to prevailing market prices is required.
– For sellers: achieving 10,400–11,000 AED/m² corresponds to fair value without undercutting market-level returns.
General recommendations: AL FOUAD is a highly liquid budget-segment asset with a yield that exceeds the district average by roughly 1.7 times. Investment prospects over a 3–5 year horizon are positive, assuming continued demand for compact units and a stable rental market.
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