1. Definition of the area and data structure
Actual location: according to DLD data, the building Azizi Riviera 41 belongs to the Al Merkadh area and the Meydan One Community master project. For the analysis, only data confirmed in the open DLD database was used.
2. Analysis and liquidity
For this building, 47 valid sale transactions for 1-bedroom (1BR) apartments have been recorded, which is a good level of liquidity for a recently completed property.
Transaction dynamics:
– The main volume of 1BR sales occurred in Q4 2022 (26 transactions).
– In 2024, sales continued at a slower pace, indicating a gradual release of remaining units to the market or the start of resales.
3. Price dynamics per square meter (1BR)
Average price per square meter in the building:
– Q4 2022: 18,965 AED/m².
– Q1–Q3 2024: a decrease to 16,645–17,778 AED/m².
– However, over the last 12 months the average price for recent transactions is significantly higher — 22,137 AED/m², which indicates the emergence of “premium” resales or the sale of the most liquid units.
For the Al Merkadh area (1BR):
– The range of average prices per m² fluctuated between 15,300 and 21,300 AED/m² in 2020–2023.
– Over the last 12 months, the average price amounted to 20,356 AED/m², meaning Azizi Riviera 41 is selling at an 8–9% premium to the area average.
4. Rental market analysis
For Azizi Riviera 41 and the Meydan One master project, there are still no valid 1BR rental contracts in the open DLD data: the property is new, and the mass signing of rental agreements is only starting or has not yet been reflected in the system.
In the Al Merkadh area, the rental market is well developed — more than 27,000 contracts for all residential apartments are recorded in DLD.
Dynamics of average annual rent per m² (all apartments):
– 2022: 846–1,119 AED/m².
– 2023: 1,152–1,356 AED/m² (steady growth).
– Over the last 12 months: 1,525 AED/m².
Thus, the Al Merkadh area has reached an average rental level of around 1,525 AED/m² per year.
5. Price comparison and ROI
Summary figures for the last 12 months:
– Average transaction price (1BR, Azizi Riviera 41): 22,137 AED/m².
– Area level (1BR, Al Merkadh): 20,356 AED/m².
– Average rent in the area (all apartments): 1,525 AED/m²/year.
ROI calculation (for 1BR apartments in the building — there is no rental data for the building itself, so the calculation is based only on area figures):
– Gross ROI for the area: 1,525 / 20,356 ≈ 7.5% gross (annual yield).
– If we take the entry price in Azizi Riviera 41 (22,137 AED/m²), ROI decreases to 6.9% (calculated using area rental levels and the building’s price).
Adjustment for acquisition costs (an additional 7% on entry — government fees, broker):
– ROI_net = ROI_brutto / 1.07 ≈ 7.0% / 1.07 ≈ 6.5%.
Fair price range for a target yield of 7–8% per annum:
– With the average area rent of 1,525 AED/m²: the fair price range for an investor (at 7–8% ROI) is 19,063–21,786 AED/m².
– Azizi Riviera 41 is currently selling on average at the upper boundary of this range or slightly above; for an investor, a small discount from current transaction levels is reasonable if the goal is to achieve at least 7.5–8% gross annual yield.
6. Outlook and conclusions for the investor
– Azizi Riviera 41 is a liquid, modern premium-class building, with 1BR sales going at a clear premium to the area.
– Against the backdrop of overall rental growth in Al Merkadh, a slight increase or at least stability of rental rates in the area is likely in 2024.
– From a yield perspective, when buying “at market” (22,137 AED/m²) and renting out at the average area rate (1,525 AED/m²), the expected return is 6.9% gross (or 6.5% net after costs).
– For an investor, it is reasonable to target a purchase price up to 21,000 AED/m² to secure a yield close to 7.5–8% after all expenses.
– Resale is possible at a premium relative to older complexes in Al Merkadh, but rental ROI will be slightly below the area benchmark.
– The Al Merkadh area shows steady rental growth and strong rental demand, which reduces vacancy risk — a positive factor for investors.
There is still no data on actual rentals specifically in Azizi Riviera 41 and in the master project. All rental yield estimates are based solely on Al Merkadh area indicators.
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