ROI analysis of apartment in Azizi Riviera 16: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to DLD, the Azizi Riviera 16 building is located in the Al Merkadh area, within the Meydan One Community master project. For the analysis, sales and rental filters were applied by building and area, taking into account only residential apartments (type “1-bedroom” for sales and “1 bed room”/“1bed room” for rentals).

2. Transaction frequency and liquidity analysis

Over the past 3 years, activity for 1-bedroom transactions in Azizi Riviera 16 has been high: in 2023–2024 deals were recorded almost every quarter (from 1 to 5 transactions per quarter). Overall, the building demonstrates good liquidity in its sales segment.

For rentals over the past 12 months, a significant number of contracts have been registered for the building — in total, we are talking about hundreds of concluded agreements, which also indicates high liquidity and strong tenant demand.

3. Price dynamics per square metre

Azizi Riviera 16 (1-bedroom apartments):

– 2021: in the range of 12,400–13,100 AED/m².
– 2023: wide spread — from 11,200 to 17,100 AED/m² by quarter.
– 2024: substantial growth — the average price per m² reached 17,400–20,400 AED/m² in individual quarters, with a 12‑month average for the building of 19,400 AED/m².
– In Al Merkadh, the average price per m² for 1-bedroom units over the last 12 months is 20,800 AED/m².

The Al Merkadh area benchmark for similar layouts has shown a smoother and more stable price trend in recent years, but also with growth: while in 2021–2022 monthly averages were in the 16,000–19,000 AED/m² range, by 2024 they had reached 21,200 AED/m² and above in certain quarters.

4. Rental rates per m² per year

For Azizi Riviera 16 (across the entire pool of apartments, as there are few individually identified 1-bedroom contracts):

– Average annual rental rate per m² over the last 12 months — 1,643 AED/m².
– Quarterly dynamics in 2024–2025: range of 1,430–1,710 AED/m² (there is one extreme value of 7,190 AED/m², most likely an outlier, which we do not take as a reference).

For Al Merkadh:

– Average annual rental rate per m² over the last 12 months — 1,526 AED/m².
– In 2023–2025 by quarter: a smooth increase from 1,150 to 1,640 AED/m².

The rental market confirms the asset’s liquidity and the presence of solid demand for leasable space.

5. Comparison of current market levels (last 12 months, 2023–2024)

– Average sales price per m², Azizi Riviera 16, 1-bed: 19,400 AED/m².
– Comparable average level for Al Merkadh: 20,800 AED/m².
– Average rent per m² in the building: 1,643 AED/m²/year.
– Comparable rental rate in the area: 1,526 AED/m²/year.

Azizi Riviera 16 commands slightly higher rents than the area average, while purchase prices here are about 7% lower than comparable stock in the area (19,400 vs. 20,800 AED/m²).

6. Yield (ROI) and investment fair price range

– Gross yield for the building: 8.5% per annum (1,643 / 19,400).
– Gross yield for the area: 7.3% per annum (1,526 / 20,800).

Taking into account initial transaction costs of ~8% (DLD fee, agency commission, other costs), the indicative net yield for Azizi Riviera 16 is around 7.9% per annum (8.5% / 1.08). For Al Merkadh, the net yield is approximately 6.8% per annum (7.3% / 1.08).

Fair price range targeting a 7–8% annual yield, based on the observed rental level for the building:

– For Azizi Riviera 16: investor range — 20,500–23,500 AED/m² (1,643 / 0.08 and 1,643 / 0.07 respectively).
– The actual average sales price (19,400 AED/m²) is even slightly below this corridor, which is favourable for a buy‑to‑let investor: paying significantly above this threshold is not justified, and the discount to the wider area is already priced in by the market.

7. Key conclusions

For 1-bedroom apartments, Azizi Riviera 16 demonstrates:

– Strong liquidity in both sales and rentals.
– Growth in the average price per m² over the past two years, while still trading below comparable stock in the area.
– Above‑average rental levels versus the area, supporting attractive yields (above 8% gross, up to 7.9% net including costs).
– Strong appeal for investors targeting stable yields above the area benchmark with a relatively low entry ticket.
– Comfortable conditions for sellers as well — the adjustment to fair value is minimal, and a premium on sale is achievable given good condition and an efficient layout.

8. Market outlook

In Al Merkadh, demand is stable, and the volume of transactions and new rental contracts allows for very flexible entry and exit. The 3–5 year outlook appears favourable in terms of liquidity and returns, but practical investors should closely monitor the pace of new construction and overall market conditions (a strong increase in supply may put pressure on rental rates).