ROI analysis of apartment in Azizi Riviera 22: DLD data and real deals

1. Definition of the area and data structure

Actual location: Azizi Riviera 22 is located in Al Merkadh, within the Meydan One Community master project. For this property, DLD records show over 160 sale transactions and more than 170 rental contracts. For studio analysis, only those sales and leases were used where this unit type and a valid area were explicitly specified.

The structure of transactions and contracts allows for both an analysis of the building itself and a comparison with the wider Al Merkadh area.

2. Transaction volume dynamics and liquidity

Sales activity in Azizi Riviera 22 started in 2020, with a significant increase from 2023 to 2024 (from isolated deals per quarter to almost 70 in Q1 2024). The building now demonstrates high liquidity and steady demand.

The volume of registered rented studios is also high, which makes it possible to assess market rental levels based on robust statistics.

3. Dynamics of average price per m² (sales, studios)

For Azizi Riviera 22 (studios, 26.6–38.8 m²), the dynamics over the past 3–5 years are as follows:
– In 2020–2021, the average price per m² was in the range of 11,500–18,500 AED.
– In 2022–2023 it was stable at 16,000–18,000 AED/m², with slight growth.
– Over the last four quarters, the building’s average was 21,693 AED/m², reaching up to 23,000 AED/m² in the latest reporting period.
– Minimum and maximum values for studios in the building: 10,316–33,167 AED/m² (there are both budget and premium transactions).

Across Al Merkadh (apartments), the average price for the same size range and time intervals over the last 12 months is 20,597 AED/m². Thus, studios in Azizi Riviera 22 trade at a premium of around 5% to the area average.

4. Rentals: averages and dynamics

The average annual rent for studios in Azizi Riviera 22 over the last 12 months was 1,817 AED/m². For Al Merkadh, the comparable figure for apartments is 1,523 AED/m². Within the building, contract values range from 1,370 to 2,593 AED/m² for different studios; this spread indicates that the full market range is represented.

In recent quarters, rental rates in the building have been rising noticeably: at the beginning of 2024 they were 1,433 AED/m², then increased each quarter, with the latest fixed quarterly rate reaching 1,655 AED/m² (autumn 2024). The area shows a similar trend, but absolute values in Azizi Riviera 22 are higher.

Studio sizes in rental contracts are almost identical to those in sales (27–30 m²).

5. Comparison “building vs area” and “market vs investor”

As of the last 12 months:
– Purchase price of a studio in Azizi Riviera 22 — 21,693 AED/m² (building) vs 20,597 AED/m² (area).
– Average achievable rent: 1,817 AED/m² (building) vs 1,523 AED/m² (area).

6. ROI (gross yield) and adjustment to ROI_net

Gross ROI for Azizi Riviera 22 (studios, 12 months): 1,817 / 21,693 = 8.4% per annum.
For Al Merkadh (apartments): 1,523 / 20,597 = 7.4% per annum.

Taking into account standard transactional and operating costs (≈7–8% of entry price; DLD + broker + other), the net yield for an investor is lower: approximately 7.8–8.0% (building) and 6.9–7.0% (area).

For an investor, the benchmark for “fair value” at a target yield of 7–8% is:
– For the building: from 22,700 to 25,900 AED/m².
– For the area: from 19,000 to 21,800 AED/m².

Current price levels already effectively correspond to this range, possibly with a 2–4% premium. To achieve 8%+ it is necessary either to find a studio at the lower end of the market or to secure contracts at the upper end of the rental range.

7. Conclusions on liquidity, outlook and investment appeal

– Azizi Riviera 22 has recorded a sharp increase in both sales and rental transactions since 2023, confirming high liquidity and strong investment interest.
– Studio price dynamics show stabilisation with moderate growth.
– Market rental rates are rising faster than the area average; the building commands a premium both in purchase price and rental rate.
– Yield (ROI) in the 7.0–8.4% range is above the average for Al Merkadh apartments, especially in case of a favourable purchase or leasing at the top of the market.
– For an investor, the current Azizi Riviera 22 market is balanced: the fair price range for studios is already close to actual transaction levels, and no substantial additional discount is required to reach a 7–8% yield target.
– The building and the area are expected to remain attractive for both leasing and resale, especially as infrastructure in Meydan One Community is completed.