ROI analysis of apartment in Azizi Riviera 59: DLD data and real deals

1. Definition of the area and data structure

Actual location: according to the DLD database, the building Azizi Riviera 59 belongs to the Al Merkadh area and the Meydan One Community master project. All quantitative assessments for the building are based on this area and master project; no alternative naming was used.

Data structure and quality: for Azizi Riviera 59 there is a substantial history of sales transactions (146 deals, including 23 studios over the past 12 months). There is no rental data yet for this specific building, which is typical for new buildings or off-plan projects. For the rental market, a large sample for the Al Merkadh area and the Meydan One Community master project (studio segment) has been used.

2. Sales liquidity and dynamics

Transactions in Azizi Riviera 59 have been recorded since late 2023, with the main spike in 2024–2025 (95 and 44 deals respectively; part of the 2025 deals are most likely DLD registrations upon completion and handover, which is typical for new projects).

The dynamics of the average price per square metre for studios in the building over the last 5 quarters showed fluctuations in the range of 21,400–28,600 AED/m²:
– The peak average price per m² was in Q1 2024 — almost 28,600 AED/m².
– Over the last 12 months, the weighted average price for studios amounted to 22,990 AED/m² (23 deals per year).

Comparison with Al Merkadh (studios):
– The average price in the area over the last 12 months is 20,830 AED/m² (1,350 deals).
– Thus, studios in Azizi Riviera 59 are trading about 10% above the average market indicator for the area (explained by the building’s newness, project specifics and stage of realization).

Over the past 3 years, Al Merkadh has shown steady price growth: from ~15,600 AED/m² at the beginning of 2021 to the current 20,800 AED/m². This reflects high activity and growing investor interest in the area.

3. Rental liquidity and dynamics

There are no direct rental contracts for Azizi Riviera 59 reflected in the DLD (obviously related to the recent completion of the building and the long lag in registering residential rental units in new projects). However, at the level of the area and master project in the studio segment there is a large data set:
– Over the last 12 months, the average annual studio rent in Al Merkadh was 1,645 AED/m² (3,991 deals).
– A similar level for the Meydan One Community master project is 1,654 AED/m² (3,829 deals).

Aggregated dynamics for the area show a steady increase in rental rates: in 2021 — about 730–930 AED/m², by the end of 2023 — about 1,370 AED/m², current values exceed 1,600 AED/m². This clearly confirms the attractiveness of the area for investors focused on new residential complexes.

Thus, the current market rental rate for studios in Al Merkadh and Meydan One Community is a sufficiently representative “base” for assessing the yield of Azizi Riviera 59.

4. Yield comparison and fair price range

ROI calculation for studios, based on the last 12 months:

– Average purchase price per m² (building): 22,990 AED.
– Average purchase price per m² (area): 20,830 AED.
– Average annual rent per m² (area/master project): 1,645–1,654 AED.

Gross yield (ROI) for a studio in the area:
ROI_brutto_area = 1,645 / 20,830 ≈ 7.9% per annum.

Gross yield for the building (taking into account the price premium):
ROI_brutto_home = 1,645 / 22,990 ≈ 7.2% per annum.

Adjustment for initial investor expenses (≈ 7% on top of the purchase price):
ROI_net_home = 7.2% / 1.07 ≈ 6.7%.
ROI_net_area = 7.9% / 1.07 ≈ 7.4%.

Fair price range per m² for an investor targeting 7–8% per annum (based on the area):
– Lower bound: 1,645 / 0.08 = ~20,560 AED/m²
– Upper bound: 1,645 / 0.07 = ~23,500 AED/m²

Thus, the market price of Azizi Riviera 59 (23,000 AED/m²) is at the upper boundary of the “fair” range for achieving 7–8% per annum under current conditions. For above-market returns, either a discount at purchase or a higher rental rate is required (which is not yet supported by DLD statistics).

5. Conclusions and outlook

– Liquidity is high: both in the building itself and in the area there are significant volumes of deals and contracts.
– The Meydan One Community/Al Merkadh area demonstrates strong demand for compact formats (studios, 1BR), with price growth since the early 2020s of 30–35%.
– In terms of yield, premium (branded, new) buildings are already trading close to the upper boundary of the “fair” price range: when buying at market and successfully renting out, one can expect a net income of about 6.5–7.5% per annum, which remains attractive compared to major European markets; however, outpacing expectations (8–9%+) are unrealistic without a substantial discount.
– The main risks are associated with potential growth in competition from new Meydan/Riviera complexes, possible demand adjustment after supply saturation, and volatility of short-term rental rates.

Overall, for Azizi Riviera 59 and similar buildings in Al Merkadh, the yield zone for studios is close to a balanced market level, but the potential for further rental yield growth is constrained by the current price base. For new investments, careful entry calculations and a realistic ability to secure tenants at representative market rates are crucial.