ROI analysis of apartment in Azizi Riviera 63: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to the DLD database, Azizi Riviera 63 is located in the Al Merkadh area, with the master project (top level) being Meydan One Community. These values were used for all SQL selections.

According to DLD sales data, 153 transactions were found for Azizi Riviera 63, including a sufficient number of 1-bedroom (1 b/r) apartment deals to provide a representative analysis of dynamics and indicators over the last 12 months. For rentals, the DLD shows 80 active contracts over the past year directly for Azizi Riviera 63 and several thousand contracts for the Al Merkadh area.

2. Liquidity and demand

Over the past 12 months, there have been 8 transactions for 1-bedroom (1 b/r) apartments in Azizi Riviera 63 and a total of 38 transactions for the entire year 2024. From 2025 onwards, activity has further increased: in just the first half of 2025, 11 transactions have already been registered for the building. This indicates solid demand, typical for new complexes in mass-market Dubai New Developments with a predominance of investors and end-users.

For rentals, 80 contracts have been registered directly for the building over the last 12 months — for a new building this level indicates good demand and high occupancy.

Overall, turnover for both sales and rentals is above the area average, with no signs of acute oversupply or lack of transactions.

3. Price and rent dynamics over 3–5 years

The average sale price of 1-bedroom apartments in Azizi Riviera 63 over the entire analysis period has grown significantly faster than in Al Merkadh as a whole:

– Over the last 12 months, the average transaction price for a 1-bedroom apartment in the building was 23,568 AED/sq m, while in Al Merkadh it was 20,829 AED/sq m.
– Quarterly values for the building: in 2024–2025 the range was from 22,000 to 29,000 AED/sq m (a spike in 2024, followed by a correction to 24–25k in 2025).
– For the area, from 2021–2024 the dynamics were more stable: from 16,000–19,000 AED/sq m (2021), with a gradual increase to 21,000 AED/sq m (2024–2025).

Price growth over 3 years in Al Merkadh was about 27%, while for Azizi Riviera 63 the dynamics show a local overheating in 2024, followed by stabilization closer to the area level.

For rentals, the average rate per sq m in the building over the last 12 months is 1,515 AED/sq m/year (all apartment types). In Al Merkadh over the same period, the average rate is similar — 1,526 AED/sq m/year. Over the past 2 years, the average rent in the area has increased by almost 30% (from 1,150 to 1,525 AED/sq m/year).

4. Comparison of prices and rents: building vs area

– The building’s average sale price per sq m is 13% higher than the area level (23,568 vs 20,829 AED/sq m over the last 12 months).
– The average rent per sq m for the building and the area is effectively identical (~1,515–1,526 AED/sq m/year).
– The cost of ownership in Azizi Riviera 63 is significantly higher than in the average projects of the area, while the rental level does not provide a unique premium upside.

5. Yield (ROI)

Gross yield (brutto ROI) for Azizi Riviera 63:

– For the building: ROI_brutto = 1,515 / 23,568 = 6.4% per annum.
– For the area: ROI_brutto = 1,526 / 20,829 = 7.3% per annum.

Taking into account standard all-in acquisition costs (estimated at 7–8% of the purchase price), the net ROI (net yield) is:

– For the building: ROI_net ≈ 6.4% / 1.07 ≈ 6.0% per annum.
– For the area: ROI_net ≈ 7.3% / 1.07 ≈ 6.8% per annum.

6. Fair investment price range

To achieve a target rental yield of 7–8% per annum, the fair purchase price is calculated as Current rent_psm / Target ROI.

– For Azizi Riviera 63: with rent at 1,515 AED/sq m/year, the price range for an investor is from 18,937 to 21,642 AED/sq m.
– For Al Merkadh: with rent at 1,526 AED/sq m/year, the range is from 19,075 to 21,800 AED/sq m.

The actual current price for the building is 23,568 AED/sq m, i.e. 9–16% above the fair price range for a 7–8% yield target. To reach a higher yield, the buyer will need either rental growth or a discount on the purchase.

7. Conclusions and outlook

– Liquidity of Azizi Riviera 63 is confirmed: both sales and rentals are active.
– The purchase price (23,500+ AED/sq m) is 13% above the area level, and at the current rental level the yield is below typical investor benchmarks.
– Azizi Riviera 63 is currently in a “new-build premium” phase of the market cycle: sellers are asking above-area prices, but the rental flow does not provide a substantial premium.
– Over a 3–5 year horizon, steady market absorption, continued leasing and the absence of overheating are likely to lead to a gradual convergence of ROI towards the area’s 6–7%. A new growth wave may occur with an infrastructure upgrade of the area (Meydan development).
– Investors targeting a 7–8% annual yield should consider purchases at a 10–15% discount to the current level, or be prepared for a moderate 6–6.5% NOI rate.