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


1. Definition of the area and data structure

Actual location: according to DLD data, the Binghatti Gateway building belongs to the Al Jadaf area and the Dubai Health Care City Phase 2 master project. The database records 250 sale transactions for 1-bedroom apartments (1BR) in this building, which allows for a detailed quantitative analysis of sales. For rentals, the DLD has no registered contracts for 1-bedroom units or any apartments at all in Binghatti Gateway (or in the entire master project), so aggregated data for the Al Jadaf area is used for rental and yield analysis.

ROI analysis of apartment in Binghatti Gateway: DLD data and real deals Continental Club Property LLC


2. Analysis of sales volume and dynamics

In Binghatti Gateway, since 2020 dozens of 1-bedroom sale transactions have been concluded every quarter, which indicates good liquidity of the asset. Peak activity occurred at the end of 2020, after which sales became more evenly distributed.

The average price per square meter for 1BR apartments in Binghatti Gateway showed the following dynamics:
– 2020: a decline from 9,300 to 8,200 AED/m²;
– 2021–2022: a range of 7,400–9,000 AED/m²;
– 2023: growth, with Q4 exceeding 9,800 AED/m²;
– 2024 (Q1–Q2): average levels in the range of 11,200–11,730 AED/m².

On average over the last 12 months, the building’s mean price per square meter was 10,980 AED/m². For comparison, across the entire Al Jadaf area the average price per square meter for 1-bedroom apartments over the same period was 18,318 AED/m² — significantly higher than in Binghatti Gateway, which points to the building’s relative affordability/discount versus the wider area.

ROI analysis of apartment in Binghatti Gateway: DLD data and real deals Continental Club Property LLC


3. Comparative analysis of rental rates

For the building itself and the master project, no DLD-registered rental contracts have been found over the entire history — neither for 1-bedroom units nor for other formats. This may indicate either a specific owner profile, the operating history of the building, or incomplete registration of contracts through the DLD.

The analysis therefore uses figures for the Al Jadaf area (all apartments without breakdown by size and type):
– The average rental rate in the area over the last 12 months is about 966 AED/m² per year.
– Rental rates have been steadily increasing: from 600–700 AED/m² in 2021–2022 to 900+ AED/m² in 2024, with growth up to 1,030 AED/m² recorded in certain quarters in recent years.


4. ROI and investment yield

Yield calculation based on averaged DLD data for the last 12 months:
– Average purchase price per square meter for a 1BR in Binghatti Gateway: 10,980 AED/m².
– Average market rent in the area: 966 AED/m² per year.
– Maximum gross annual yield (brutto ROI) under these parameters: around 8.8% per annum (966 / 10,980).
– Adjusting for entry costs (7–8%: DLD fee, brokerage and expenses), net yield (net ROI) will fall to roughly 8.2–8.3% per annum.

Assessment of a fair price range to secure a 7–8% annual yield for the investor:
– If an investor targets a 7–8% yield at the current market rent level in the area, the “investment fair” purchase price should be in the range of 12,000–13,800 AED/m² (966 / 0.08 … 966 / 0.07).
– The actual average market price in Binghatti Gateway is 15–20% below this range. This indicates that, based on the average rent in Al Jadaf, an apartment in Binghatti Gateway appears relatively undervalued compared with the average level of rental stock in the area.


5. Liquidity and outlook

In terms of transactions, the building has long been and remains consistently liquid: every quarter there are several deals just for 1-bedroom units — a solid indicator of market activity. The building’s average price is significantly below the area average, which may reflect both its relative “budget”/young-professional positioning and its potential for price growth if it converges with the wider location’s pricing in the future.

In the rental market, the entire Al Jadaf area is characterized by a large number of contracts (tens of thousands over several years), with a confident upward trend in rates over the past 2–3 years. This points to strong, stable demand and potential for long-term investment, despite rental activity in the building itself being insufficiently transparent in the DLD database.

Conclusions:
– The building shows stable transactional demand and an attractive market price relative to the area;
– The yield on a unit purchased now (using the area’s average rental level as a benchmark) is potentially above a typical investor’s target return, even after transaction costs;
– The asset may be of interest to value investors counting on price convergence with the wider area, as well as for rental strategies, provided adequate demand;
– In the absence of reliable direct rental data for the building, rely on area-wide averages, factoring in the risks to individual unit performance.

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