1. Definition of the area and data structure
Actual location: according to the DLD database, the AXIS RESIDENCES 5 building is located in the Nadd Hessa area and belongs to the Silicon Oasis master project.
For this building and the surrounding area, there are detailed sales statistics available (72 transactions in the entire building, with no separate 2BR deals) and a large rental sample (over 400 rental contracts in the building and more than 15,000 in the area per year). This allows for a robust comparison between the asset and the area, and for a reliable assessment of yield levels.
2. Deal dynamics and volume. Liquidity
Sales volume in AXIS RESIDENCES 5 is unevenly distributed: a significant spike in 2022 (36 deals), a moderate number of deals in 2023 (9) and in the last 12 months (8). This indicates moderate liquidity for apartments in this building — demand is not very high, but transactions are taking place. In Nadd Hessa, the number of deals is significantly higher (hundreds and thousands of transactions per quarter), reflecting a high level of liquidity in the local market.
Rental activity in the building is consistently recorded — more than 400 contracts in total, with 48 new contracts registered over the last 12 months. This confirms stable rental demand for apartments in the building and in the area as a whole.
3. Price per m² dynamics. Building and area
In AXIS RESIDENCES 5, the average price per m² over the last 12 months was approximately AED 7,370/m² (across all apartments). Quarterly dynamics in 2024 show growth — average values increased from AED 6,330 to AED 7,855/m².
At the same time, in Nadd Hessa the average price per m² over the last 12 months is around AED 14,340/m². This is 1.9 times higher than in the building. Overall, the trend in the area is more pronounced: quarterly prices exceed AED 8,500/m² and continue to grow, reflecting both the general market upturn and an inflow of investors.
Comparison: an apartment in AXIS RESIDENCES 5 is noticeably cheaper than the area average.
4. Rental rates and their dynamics
The average annual rental rate in AXIS RESIDENCES 5 over the last 12 months amounted to AED 799/m². The comparable figure for Nadd Hessa is AED 737/m². Thus, the rental rate in the building is currently 8% higher than the area average.
Rental dynamics in the building over the last 3–4 years show a sharp increase: from just above AED 400/m² in 2021–2022 to AED 570–630/m² in the second half of 2024, which is in line with the overall market trend. In the area, five‑year growth amounted to roughly 20–30%: from AED 480/m² to more than AED 730/m².
5. ROI comparison and assessment
Based on actual sale and rental prices per m² over the last 12 months:
– Average purchase price in the building: AED 7,370/m².
– Average annual rent in the building: AED 799/m².
– Gross yield (ROI) in the building: 799 / 7,370 ≈ 10.8% per annum.
– Area average: price AED 14,340/m², rent AED 737/m², ROI ≈ 5.1% per annum.
Taking into account acquisition costs (DLD fee, broker, other ≈ 7%), the “net” yield (ROI_net) for an investor in the building is approximately 10.8 / 1.07 ≈ 10.1%.
6. Fair investment price range
To achieve a yield of 7–8% per annum, an investor should reasonably target the following fair price per m²:
– For the building: fair price = 799/0.08 ≈ AED 9,990/m² (8%), 799/0.07 ≈ AED 11,414/m² (7%).
– The current transaction price (for the building) is around AED 7,370/m², which already delivers a premium yield (>10%) without the need for additional discounting.
– For the area: fair price = 737/0.08 ≈ AED 9,212/m², 737/0.07 ≈ AED 10,529/m². The actual average price in the area is AED 14,340/m² (the investor receives ~5.1% per annum).
This means that AXIS RESIDENCES 5 is significantly more attractive for an investor in terms of gross yield.
7. Conclusions on liquidity, prospects and risks
– AXIS RESIDENCES 5 offers access to yields significantly above the Nadd Hessa average, thanks to a low entry price (AED 7,370/m² versus AED 14,340/m² in the area) with comparable rental levels.
– An important constraint: the number of transactions in the building itself is low, quarterly fluctuations are pronounced, and the building sits in a below‑market price segment.
– For an income‑focused investor, this building is a fast way to increase net capital yield, but with a certain liquidity risk in case of mass exits or the launch of new projects nearby.
– Nadd Hessa demonstrates steady growth in demand and a price premium — acquisitions at the area level are better suited to strategic investors willing to accept lower yields in exchange for higher liquidity.
8. Bottom line: according to current DLD data, AXIS RESIDENCES 5 is a rare example of a combination of high yield (>10% gross/net) and stable rental demand. The buyer receives almost double the yield premium compared to the area. However, such assets typically show slower price growth due to limited liquidity and the specifics of the segment.
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