ROI analysis of apartment in Azizi Riviera 45: DLD data and real deals

1. Area definition and data structure

Actual location: According to DLD, Azizi Riviera 45 is located in the Al Merkadh area, within the Meydan One Community master project.

For Azizi Riviera 45 (1BR), 49 sale transactions for 1 bedroom apartments have been recorded, which allows us to draw conclusions on the price level and dynamics for this building. However, the DLD database contains no registered rental contracts specifically for this building and this apartment type. For comparative rental analysis, the data was therefore examined at the Al Merkadh area level.

2. Deal dynamics and structure, sale prices

Transaction frequency
Transactions with 1BR units in Azizi Riviera 45 were irregular; the bulk of activity falls in Q4 2022 (32 deals), while in other periods transactions are sporadic.

Average price per m² dynamics for the building (1BR)
Average price per square metre in Azizi Riviera 45 (1BR) by quarter:
– Q4 2022: 18,008 AED/m²
– Q4 2023: 15,662 AED/m²
– Q2 2024: 16,735 AED/m²
– Q3 2024: 12,960 AED/m² (a slight decline)
– Q4 2024: 17,224 AED/m²
– Periods in 2025 may relate to registered off-plan or late transactions, averaging around 13,200–18,900 AED/m² (high volatility).
Over the last 12 months, the average deal price for the building is approximately 15,877 AED/m².

Area price dynamics and levels
In Al Merkadh (1BR), the transaction volume is significantly higher (more than 13,800 apartment sales), which provides robust statistics. In recent years, the average price in the area has remained above that of the analysed building:
– Last year (12 months): 20,738 AED/m².
– Current trend: an upward trajectory in the area’s average price (quarterly values in 2023–2024: 19,400–21,400 AED/m²).

Compared to the area, Azizi Riviera 45 trades at a discount of roughly 24% to the average market level in Al Merkadh for 1BR units.

The distribution of transactions by size and price for both the building and the area falls within the typical segment for new Meydan complexes.

3. Rental rate analysis and rental dynamics

There are no registered rental contracts in DLD for Azizi Riviera 45, neither for the building itself nor within the Meydan One Community master project for 1 bedroom apartments.
At the Al Merkadh area level, more than 27,000 residential contracts (all sizes/types) have been registered over the last 12 months. The average annual rent per m² in the area amounted to 1,524 AED/m²/year (12 months).

Rental dynamics in the area:
– 2022: 847–1,119 AED/m²/year (growth)
– 2023: 1,152–1,356 AED/m²/year
– Q2 2024: 1,341 AED/m²/year
– Recent quarters: accelerated rental growth, with 2024 values exceeding 1,450–1,550 AED/m²/year.

4. ROI and investment analysis

For Azizi Riviera 45, ROI can only be calculated at the area level due to the absence of rental contracts for the building and the project.
– Average purchase price for the building (12 months): 15,877 AED/m²
– Average purchase price for the area (12 months): 20,738 AED/m²
– Average annual rent for the area (12 months): 1,524 AED/m²

Indicative ROI calculation for an investor:
– Gross ROI at current building prices (using area-level rents as a proxy): 1,524 / 15,877 ≈ 9.6%
– Gross ROI for the area: 1,524 / 20,738 ≈ 7.4%

Adjusting for acquisition costs (~7%): net ROI for the building ≈ 9.6% / 1.07 ≈ 9.0%; net ROI for the area ≈ 7.4% / 1.07 ≈ 6.9%.

Investment-fair price range for a 7–8% annual yield:
– For the area at this rental level: 1,524 / 0.08 = 19,050 AED/m² (for an 8% yield), 1,524 / 0.07 = 21,771 AED/m² (for 7%). Thus, the average area price broadly corresponds to a 7–8% gross yield benchmark.
– Azizi Riviera 45 is currently trading SIGNIFICANTLY below the area (around 15,900 AED/m² over the last year), which could theoretically provide an above-average yield if the achievable market rent in the building is in line with the area.

However, actually achieving such yields depends on the ability to lease the apartment at rates typical for new Meydan One complexes.

5. Liquidity and outlook

The Al Merkadh market shows stable liquidity and active secondary transactions, especially for 1BR apartments (more than 13,800 sales and tens of thousands of rental deals in recent years). For Azizi Riviera 45, sales demand was strong at launch, but the current depth of the secondary market is modest (a change of ownership after handover is relatively rare).
Rental demand is stable; as new complexes are completed and occupied, rental rates are rising at an accelerated pace. Average purchase prices in the area have reached a plateau and are moving higher.

Conclusions for an investor:
– Azizi Riviera 45 is located in an area with high rental and buyer activity.
– The current entry price for the building is significantly below the area average, which, all else being equal, increases potential yield.
– The building trades at about a 24% discount to the area in terms of price; gross yields could theoretically exceed 9% per annum, but it is important to factor in rental liquidity specifically in this building, as there is no precise rental data here.
– Rental demand in the area is high, which is favourable for occupancy in new apartments.
– A high share of off-plan/new buildings and substantial transaction volumes are typical for the current stage of the location’s development.
– Investment potential is attractive for a long-term holder focused on rental growth and a gradual narrowing of the discount to the area.