ROI analysis of apartment in Azizi Riviera 44: DLD data and real deals

1. Definition of the area and data structure

Actual location: according to DLD data, the building Azizi Riviera 44 belongs to the Al Merkadh area and the Meydan One Community master project. All further comparative calculations by area and master project are based on this classification, not on marketing associations.

2. Liquidity assessment of the property and the area

The DLD database records 332 sale transactions for Azizi Riviera 44, including studio apartments (0BR) — a fairly high volume for new buildings, reflecting good liquidity of the property at the primary stage. Over the past 12 months, 15 studio transactions have taken place in this building. Overall, in Al Merkadh thousands of apartment transactions are concluded annually, indicating high demand and the potential for a large secondary and rental market.

In terms of rental deals, at least 95 new contracts for studios (0BR) in Azizi Riviera 44 have been recorded over the past 12 months, and more than 10,000 apartment (Flat) contracts in the area as a whole over the same period, which confirms high rental activity.

3. Sales price dynamics for the building and the area

Over the past 3 years for Azizi Riviera 44 (studios):
– The average price per m² has shown volatility driven by demand spikes and sales around the building’s completion.
– In 2024, the average price per m² for studios in the building ranged from 16,900 to 23,000 AED. Over the last 12 months, the average was 20,700 AED/m² (based on 15 transactions).
– In Al Merkadh, the average price per m² for apartments (all types) over the last 12 months was 20,450 AED/m² (more than 4,000 transactions).

The peak of sales activity for studios in Azizi Riviera 44 fell in Q2–Q3 2024, when both transaction volume and average prices were at their highest.

4. Rental rate dynamics for the building and the area

For rental contracts (studios in Azizi Riviera 44):
– Over the past 12 months, the average annual rental rate for studios was 1,620 AED/m² (based on 95 contracts).
– In Al Merkadh (all apartments), the average rent per m² was about 1,520 AED (more than 10,000 contracts) over the same period.

Rental dynamics show a rapid increase in rates: back in 2022–2023, average values in the area were in the 900–1,200 AED/m² range, while in 2024 (especially from mid‑year) they stabilized around 1,500–1,600 AED/m² and above.

5. Comparison of the building and the area by key metrics

Azizi Riviera 44 (studios, last 12 months):
– Average purchase price per m²: 20,700 AED
– Average rental rate per m²: 1,620 AED
– Transaction volume is high, liquidity is excellent.

Al Merkadh (all apartments, same periods):
– Average purchase price per m²: 20,450 AED
– Average rental rate per m²: 1,520 AED
– The market is active, but the range of asset quality and age is broader.

Thus, studios in Azizi Riviera 44 rent slightly above the average rental level for the area, while the average purchase price is at or slightly above the area average (a difference of less than 2–3%).

6. Return on investment (ROI) calculation

Gross yield for Azizi Riviera 44 (studios):
– ROI_brutto = 1,620 ÷ 20,700 ≈ 7.8% per annum (based on actual DLD transactions and contracts over the last 12 months).

For the area as a whole:
– ROI_brutto = 1,520 ÷ 20,450 ≈ 7.4% per annum.

Net yield (taking into account initial costs of ≈ 7%):
– For Azizi Riviera 44: ROI_net ≈ 7.8 ÷ 1.07 ≈ 7.3%
– For the area: ROI_net ≈ 7.4 ÷ 1.07 ≈ 6.9%

These are real averaged figures, assuming leasing without vacancy periods and without significant cost overruns.

7. Fair price range for an investor

If targeting a 7–8% annual yield for studios:
– For Azizi Riviera 44: fair price per m² = 1,620 ÷ 0.08 to 1,620 ÷ 0.07 ≈ 20,250 – 23,140 AED/m².
– The current average price in the building is at the lower bound of this range (20,700 AED), which makes this level fair for an investor on a 3–5 year horizon.

8. Conclusion and outlook

Azizi Riviera 44 demonstrates excellent liquidity, strong tenant demand (especially for studios), and price and rental dynamics that indicate healthy growth without signs of overheating. The building is priced and rented roughly at or slightly above the area average, while its gross yield is higher than in most Dubai locations. Over a 3–5 year horizon, assuming sustained demand and moderate market dynamics, the projected ROI should remain in the 7–8% per annum (gross) range, and for those entering at current prices, the investment looks justified both for rental income and for long‑term asset holding.