ROI analysis of apartment in BINGHATTI APARTMENTS: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to DLD, the BINGHATTI APARTMENTS building is located in the Nadd Hessa area and is part of the Silicon Oasis master project.
Type of asset under analysis: 2-bedroom apartments (2 b/r), exclusively residential property, Unit type – Flat.

2. Market volume and liquidity

There have been 32 sale transactions for 2-bedroom apartments in this building, which indicates the presence of deals but relatively low liquidity in this specific segment. Overall, a large number of lease contracts have been registered in the building over the past 12 months (699 contracts across all apartment types), confirming strong rental demand in the property.

3. Price dynamics over 3–5 years

From 2020 onwards, the dynamics of the average price per square metre for 2-bedroom apartments in BINGHATTI APARTMENTS were as follows:
– In 2020, prices were in the range of 5,400–7,200 AED/m².
– In 2021, the averages declined to 4,500–5,600 AED/m².
– Growth started again from 2022: in 2023 the range was 5,100–6,200 AED/m².
– In 2024–2025 the average price increased significantly to around 6,900–8,400 AED/m², with some transactions reaching 9,600 AED/m².
– The average price per square metre in the building over the last 12 months: 8,263 AED/m².

The dynamics in Nadd Hessa (Silicon Oasis submarket) show similarly strong growth. While in 2021–2022 average values were at 6,000–6,800 AED/m², by 2024–2025 they had risen to 13,000–15,500 AED/m², indicating a general market appreciation of residential property in the area. The average sale price per square metre in the area over the last 12 months: 14,281 AED/m².

4. Rental dynamics and levels

A large number of rental transactions have been recorded in the building itself. The average rental rate for all residential units in BINGHATTI APARTMENTS over the last 12 months was 801 AED/m² per year. In Nadd Hessa, the average rate for the same period was 735 AED/m² per year, slightly lower than in the subject building.

Quarterly rents increased from 450–500 AED/m² in 2020–2021 to 750–870 AED/m² in 2024–2025. A similar trend is seen across the entire area: values rose from 470–570 to 710–750 AED/m² per year.

5. Comparison with the area and investment metrics

– The average sale price of 2-bedroom apartments in BINGHATTI APARTMENTS over 12 months is below the area average (8,263 vs 14,281 AED/m² — the building is cheaper than the area by roughly 42%).
– The rental rate in the building is higher than the area average (801 vs 735 AED/m² — about 9% higher).

Return on investment (ROI) calculation:

– Gross ROI for the building: 801 / 8,263 ≈ 9.7% per annum.
– Gross ROI for the area: 735 / 14,281 ≈ 5.1% per annum.

Adjusting for initial acquisition costs (around 7%, including fees and commissions), the expected net yield for the building is: 9.7% / 1.07 ≈ 9.1% per annum.

6. Investment fair value for a target yield of 7–8%

Based on the achieved rental income:

– For a target yield of 8%: fair value in the building = 801 / 0.08 ≈ 10,013 AED/m².
– For a target yield of 7%: fair value = 801 / 0.07 ≈ 11,444 AED/m².

The current market price (8,263 AED/m²) is 18–28% below this “fair value corridor” — a buyer is already achieving a yield above 9% per annum at current market prices.

7. Conclusions and outlook

BINGHATTI APARTMENTS is priced below the area average on a per-square-metre basis but delivers a higher return on investment thanks to a strong rent-to-price ratio. Over the past 3–5 years, the volume of sales and lease contracts has demonstrated stable demand; in 2023–2024 the building appreciated significantly, yet it still remains cheaper than the area on average.

Under current market conditions, the building looks attractive for an investor seeking returns significantly above the area average and/or for a buyer focused on the rent-to-price relationship. From a liquidity standpoint, there are no material risks: both sales and rentals are stable, and demand is growing. High yields can be expected to persist until the price gap with the wider area is closed through further price growth or market rebalancing.