ROI analysis of apartment in Azizi Riviera 8: DLD data and real deals

1. Defining the area and data structure

Actual location: according to the DLD database, Azizi Riviera 8 is located in the Al Merkadh area, within the Meydan One Community master project. All further comparisons are made at the level of this building and this area.

The database contains 233 registered sale transactions and 385 long-term lease contracts for this building. Across Al Merkadh as a whole, the dataset is much larger: about 35,000 sales and almost 28,000 rental contracts. This indicates high liquidity of residential real estate in this area for analytical purposes.

2. Transaction frequency and dynamics for the building and the area

For Azizi Riviera 8, sales occur in several distinct waves: a small number of isolated deals in 2020–2022 and a sharp spike in volumes from Q3 2023 (114 deals in the quarter), most likely linked to mass handover of keys or completion of construction. Over the past four years, market activity for the building has remained consistently strong.

The average price per square metre in Azizi Riviera 8 by quarter for 2020–2024 shows a pronounced increase: while in 2020/2021 deals were closing at an average rate of around 11,000–16,000 AED/m², in 2023–2024 values have consistently stayed above 17,000 AED/m², in some quarters reaching 21,000–25,000 AED/m² (for example, Q1 2024 — 21,242 AED/m², Q3 2024 — 24,963 AED/m²). This indicates a notable rise in property values in the building itself in the post-handover period.

In Al Merkadh, the situation is also dynamic, but the growth is less volatile: in 2020–2021 the average price remained in the 16,000–18,000 AED/m² range, and starting from 2023 the area-wide average exceeded 19,000 AED/m², reaching 22,000 AED/m² by 2024. It can be noted that in the last 12 months (June 2023 – June 2024) Azizi Riviera 8 has been selling slightly below the area’s average market level (19,493 AED/m² for the building versus 22,471 AED/m² for the area).

3. Rental market: dynamics and comparisons

Based on lease agreements in Azizi Riviera 8 over the last 12 months, the average rental rate is 1,653 AED/m² per year. In Al Merkadh, the comparable figure is 1,525 AED/m². This means that the current rental level in the building is noticeably higher than the area average — a premium of more than 8%.

The dynamics of rental contracts for the building are as follows: from the second half of 2023 (when the building’s rental market effectively launched), there has been a rapid increase in the average rental rate: from roughly 1,263 AED/m² in Q3 2023 to a peak of 1,391 AED/m² in Q3 2024 and 1,365–1,451 AED/m² in subsequent quarters. This is in line with the wider area, where growth started earlier (back in 2021) and in recent quarters has stabilised at 1,350–1,550 AED/m².

4. Key 12‑month metrics and returns

Current average transaction price per m² for the building over the last 12 months: 19,493 AED/m².
Average annual rent per m² for the building over the last 12 months: 1,653 AED/m².

For Al Merkadh over the same period:
Price per m²: 22,471 AED/m².
Rent: 1,525 AED/m².

Gross yield (ROI) is calculated as the ratio of average annual rent to average purchase price:

– For Azizi Riviera 8: ROI_gross = 1,653 / 19,493 ≈ 8.48%
– For Al Merkadh: ROI_gross = 1,525 / 22,471 ≈ 6.79%

Taking into account standard transaction costs (around 7–8% on entry), net yield (ROI_net) is lower:

– For the building: ROI_net ≈ 7.9% (8.48% / 1.07)
– For the area: ROI_net ≈ 6.35% (6.79% / 1.07)

Fair price for a 7–8% yield

Targeting an annual yield of 7–8%, the “fair” price range for an investor is calculated as follows:

– for Azizi Riviera 8: 20,663–23,614 AED/m² (1,653 / 0.08…1,653 / 0.07)
– for the area: 19,060–21,786 AED/m² (1,525 / 0.08…1,525 / 0.07)

Current market prices for the building are slightly below this range, while for the area they are slightly above. This configuration underpins investor interest in Azizi Riviera 8: the established market price can deliver a yield above the area average without the need to discount below market level.

5. Conclusions on liquidity and potential

Azizi Riviera 8 demonstrates high liquidity: both sales and rentals are regularly recorded in the DLD, and the mass commissioning of the building triggered a spike in transactions from late 2023. The current price per m² is slightly below the average market level in Al Merkadh, but against the backdrop of higher average rents in the building it provides an attractive gross yield for investors (8.5% versus 6.8% for the area). Net yield after costs is 7.9% and 6.3% respectively.

Market dynamics are clearly positive: both levels (building and area) show steady price growth, while rental demand for Azizi Riviera 8 even outperforms the area benchmark. Liquidity and rental demand are strong: over the past 12 months, several dozen contracts have been signed in the building — clear evidence of tenant interest.

For investors focused on stable income, Azizi Riviera 8 stands out favourably against the wider area both in terms of current gross yield and the price-to-rent ratio. There is no need to pay a premium to the market to buy here — on the contrary, the building can deliver even higher-than-market returns at current transaction prices. This makes it an attractive asset both on a 3–5 year horizon and for a buy-to-let strategy in the current market.