ROI analysis of apartment in AXIS RESIDENCES 3: DLD data and real deals


1. Definition of the area and data structure

Actual location: AXIS RESIDENCES 3 is located in the Nadd Hessa area, within the Silicon Oasis master project, which is confirmed by the presence of transactions at this address in the DLD database. Around 87 apartments have been sold from 2020 to the current year, and 478 valid rental contracts have been recorded for this building. This allows for a robust comparative analysis both for the building itself and for the wider area.


2. Volume, liquidity and demand

Sales. For 2023–2024 and the beginning of 2025 there is a stable flow of transactions in the building: around 20–25 deals per year. The regularity of transactions indicates good liquidity and solid demand for apartments in the building against the backdrop of activity in Nadd Hessa.
Rentals. Almost 500 contracts have been concluded in the building in recent years, with a constant inflow of new agreements. This confirms a high level of rental demand and normal liquidity of the asset both for an investor and for an end user.


3. Purchase price dynamics and comparison with the area

The building shows significant fluctuations in the average price per square metre over different periods:

– In 2020–2021 the price per square metre ranged between 4,200–6,700 AED.
– In 2022 there was a decline to 4,200–4,900 AED/m².
– From 2023 a growth trend is visible: in Q1 2023 there was a spike to 8,800 AED/m², followed by stabilisation in the 5,100–6,900 AED/m² range across different quarters of 2023–2024, with individual adjusted outliers up to 9,100 AED/m². Over the last 12 months the average price in the building amounted to 6,863 AED/m².
– For comparison: the average price in Nadd Hessa over the same period is significantly higher — 15,081 AED/m² (calculated on the same 12‑month window). For almost the entire period from 2022 to date, prices in AXIS RESIDENCES 3 have been noticeably below the area average, giving buyers an opportunity to enter either at a premium yield or with a discount to the surrounding market.


4. Rental market dynamics

Average annual rental rates in AXIS RESIDENCES 3 show steady growth:

– 2020: 380–720 AED/m² per year (adjusted for abnormally high and low values at the start of the period).
– 2021–2022: in the 350–430 AED/m² range.
– 2023: clear recovery and growth — 450–505 AED/m² across Q1–Q4.
– 2024: ongoing growth in rates — the average rent is in the 527–574 AED/m² range, and 656 AED/m² over the last 12 months.
– For comparison: in the area, the average rent is higher — 740 AED/m² over the last 12 months, with maximum quarterly values in 2024 of 677–718 AED/m². Thus, the building’s averages remain 10–15% below the area level, despite a similar trend.


5. Yield (ROI) and fair price range

Based on the last 12 months:

– Average purchase price (AXIS RESIDENCES 3): 6,863 AED/m².
– Average annual rent (AXIS RESIDENCES 3): 656 AED/m².
– Gross yield for the building: 9.6% per annum (calculated solely from actual DLD data for the last 12 months).
– After accounting for typical entry costs (7–8%), the market net yield will be around 8.9–9.0% per annum.

For Nadd Hessa:

– Average price: 15,081 AED/m².
– Average rent: 740 AED/m².
– Area ROI is about 4.9% per annum, which is significantly lower than the yield of the building.

Fair investment purchase price range for a target yield of 7–8% per annum (for the building):
– Fair price at 7%: 656 / 0.07 = 9,372 AED/m².
– Fair price at 8%: 656 / 0.08 = 8,200 AED/m².

The current transaction price level is significantly below even the lower boundary of this investment range for such an ROI, indicating a premium yield level for new investors or a potential for further price growth — provided rental rates are maintained.


6. Brief summary for the investor

– Liquidity is high: regular sales and a large number of rental contracts.
– The purchase price in AXIS RESIDENCES 3 is significantly below the average for Nadd Hessa, providing one of the highest yields in this area (over 9% gross versus 5% for the area).
– Rental dynamics are stable; rates in both the building and the area are rising, creating a comfortable environment for future capital appreciation.
– Entering the market at current building prices objectively delivers a high ROI and a substantial “margin of safety” compared with the area level. Given that Dubai’s market has already passed through its recovery phase, such metrics are not common.
– For owners: the current price level and demand allow you to count on a quick sale if needed, as the building’s parameters are attractive for yield‑focused investors.

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