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

1. Definition of the area and data structure

Actual location: According to DLD data, the Binghatti Creek building is located in the Al Jadaf area and is part of the Dubai Health Care City Phase 2 master project. A total of 565 transactions across the entire building and 36 transactions for two-bedroom apartments (2 b/r) have been analysed, which allows us to draw conclusions about market dynamics and liquidity specifically for this building.

2. Liquidity assessment

For two-bedroom apartments (2 b/r), the transaction volume by year is distributed as follows: in 2022 — 21 transactions, in 2023 — 2 transactions, in 2024 — 13 transactions to date. This indicates moderate demand for this type of unit. Across the entire building, 72 apartments have been sold over the last 12 months, reflecting sufficient market activity.

3. Sale price dynamics

Quarterly price analysis shows a steady increase in the average price per square metre for 2 b/r units in Binghatti Creek:

– Q2 2022: around 10,448 AED/m²
– Q4 2022: around 11,434 AED/m²
– Q2 2024: around 13,575 AED/m²
– Q4 2024: around 14,922 AED/m² (based on recorded transactions)

For the entire building, the average sale price per m² over the last 12 months amounted to 13,601 AED/m² (72 transactions).

Meanwhile, in Al Jadaf the average transaction price per square metre over the last 12 months is significantly higher — 20,273 AED/m² (3,493 transactions, all residential types). This indicates that Binghatti Creek is selling at a discount of roughly 33% to the average market level in Al Jadaf, most likely due to the project’s segment positioning.

Price dynamics in the area over recent years show strong growth: from 12,576 AED/m² (early 2022) to 21,709 AED/m² (mid‑2024). This reflects a strong overall appreciation trend in Al Jadaf.

4. Rental rate dynamics

For Binghatti Creek itself and the master project, no rental contracts for two-bedroom apartments could be identified in the DLD database. This is typical for new developments, where some units have not yet been listed for rent or contracts have not been registered in the system.

Across Al Jadaf over the last 12 months, the average rental rate for residential apartments (all types) stands at 964 AED/m² per year, based on a sample of 8,459 contracts, which makes the aggregation base highly reliable.

5. Comparison of prices and rental rates, investment yield (ROI)

– Average purchase price in Binghatti Creek over the last 12 months: 13,601 AED/m² (based on actual building sales, which is more accurate than applying the area average to this project)
– Average rental rate in the area: 964 AED/m² per year (no data for the building itself, nor for the master project)
– Gross yield (based on area data, as there is no rental information for the building): ROI_gross = 964 / 13,601 ≈ 7.1% per annum.
– Net yield, taking into account entry costs (approximately ~7% of the purchase price): ROI_net ≈ 7.1% / 1.07 ≈ 6.6% per annum.

Fair price range per m² for an investor targeting a 7–8% ROI:

– With a target yield of 8%: 964 / 0.08 ≈ 12,050 AED/m²
– With a target yield of 7%: 964 / 0.07 ≈ 13,771 AED/m²

This means that the current average sale price in Binghatti Creek (13,601 AED/m²) is slightly above the fair level for an 8% yield, but still falls within the corridor for a 7–8% target, sitting roughly at the mid “investment boundary” for the area’s market.

6. Conclusions on investment attractiveness

– Binghatti Creek offers apartment prices roughly 33% below the Al Jadaf area average, which may indicate a relatively budget or mid-market segment for the building.
– Purchase price trends for the building and the area show strong growth over the past 2–3 years.
– Rental yields in the area fall within Dubai’s typical investment corridor (6.5–7% net); for the building itself, data is insufficient to assess exact yields, as there are no DLD-registered rental contracts.
– Sales liquidity of the complex is high (72 apartments of all types sold over the last 12 months), while demand for two-bedroom units within the building is moderate.
– The fair “investment” price of the building is almost identical to the current average sale price based on transactions over the past year. To confidently achieve 7.5–8% per annum, an investor should aim to buy closer to 12,000 AED/m², but even at current levels it is still possible to reach around 7% with average occupancy.
– The key demand and pricing parameters in the area are stable and upward-trending, which supports the potential for further price growth over a 3–5 year horizon.

7. Outlook for investors

Under current conditions, Binghatti Creek appears to be an attractive option for investment purchases: liquid, with clear price dynamics relative to the wider area market, and an adequate level of potential yield. The risk of “overpaying versus the market” is mitigated by the discount to the area’s average price. The main drawback is the current lack of DLD-confirmed rental data for the building itself, so investors have to rely on area-wide benchmarks.