ROI analysis of apartment in Binghatti Azure: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to DLD, the Binghatti Azure building belongs to the Al Barsha South Fourth area and is part of the Jumeirah Village Circle master project. Only data confirmed for this area is used in the analysis.

Data structure and volume:
– The DLD sales database records 851 transactions for this building.
– The 2-bedroom apartment segment has a stable presence in the database.
– For rentals, only project_name_en is specified; linking to a specific building is not supported, but all contracts for the Binghatti Azure project are taken into account.
– The number of lease contracts for the project over the past year is 378, indicating high liquidity and sustained demand in the rental segment.

2. Sales volume and dynamics

Over recent quarters, a significant number of transactions have been completed for 2-bedroom apartments in Binghatti Azure (for example, 56 in Q2 2024). This indicates high liquidity, typical for new projects at a popular stage of handover and initial occupancy.

Average price per square meter (quarterly dynamics, 2-bedroom apartments, only completed transactions, future deals excluded):
– Q2 2024: 10,716 AED/m²
– Q3 2024: 10,269 AED/m²
– Q4 2024: 10,299 AED/m²
– Q1 2025: 13,672 AED/m²
– Q3 2025: 11,283 AED/m²
– Q4 2025: 11,935 AED/m²
– Q1 2026: 13,947 AED/m²

For comparison, the average price per m² in the area (Al Barsha South Fourth, residential apartments) over the last four quarters:
– Q1 2024: 12,959 AED/m²
– Q2 2024: 13,064 AED/m²
– Q3 2024: 13,520 AED/m²
– Q4 2024: 13,296 AED/m²

Current average price level over the last 12 months:
– Binghatti Azure, 2-bedroom units: 11,896 AED/m²
– Area: 15,093 AED/m²

Thus, transactions for 2-bedroom apartments in this building are closing at prices significantly below the area average, with a discount of around 20–25%.

3. Rental rate dynamics and levels

– The average calculated rental rate for Binghatti Azure over the last 12 months for all apartments is 1,393 AED/m²/year.
– The equivalent figure for the area is 1,043 AED/m²/year.

Quarterly rental dynamics:
– Over the last 3 quarters for the building: 1,341–1,459 AED/m²/year.
– For the area: an increase from 849 to 1,140 AED/m²/year over the last six quarters.

Therefore, rents in Binghatti Azure in recent quarters have consistently exceeded the area average by more than 30%, which is typical for new, highly demanded developments.

4. Yield and indicative investment range (ROI)

Actual ROI_brutto based on DLD metrics (last 12 months, all apartments in the project):
– For the building: about 11.7% per annum (1,393 / 11,896)
– For the area: about 6.9% per annum (1,043 / 15,093)

Adjustment for transactional and operating costs (7–8% total overhead):
– Effective ROI_net for the building: about 10.8–10.9% per annum.
– ROI_net for the area: about 6.4–6.5% per annum.

“Fair price” range as a benchmark for a 7–8% annual yield, based on confirmed market rental rates:
– For Binghatti Azure (average rental level) this is 17,400–19,900 AED/m². The actual market, according to transaction data, is significantly cheaper than this range, which explains the very high yield in DLD statistics.
– For the area: 13,037–14,900 AED/m², which is close to current average prices, meaning that the market level and yields in the area are balanced.

5. Final conclusion

Binghatti Azure is an extremely liquid building, with more than 850 recorded sales transactions and hundreds of new lease contracts annually. Average DLD prices per m² for 2-bedroom apartments are significantly below both current market levels in the area and the theoretical “investment fair price” range for a 7–8% annual yield. Thanks to attractive entry prices, the levels fixed in DLD transactions provide investors with a potential post-expense yield of around 10–11% per annum, which is in line with the top segment of JVC.

Rental rates in Binghatti Azure over the past 18 months have significantly outpaced the average for Al Barsha South Fourth, as the project is new, in strong demand among tenants, and often serves as a starting location for relocants and young families.

Overall, Binghatti Azure represents an asset with very high liquidity and competitive real yield for new investments, both relative to the area and to Dubai as a whole. Additional upside in rental rates and capital values is possible as the area and its infrastructure continue to develop, but even today, based on DLD data, market yield expectations and “fair price” levels in this building are exceeded with a solid margin.