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, the Binghatti Gateway building is located in the Al Jadaf area within the Dubai Health Care City Phase 2 master project.

There are 327 registered sale transactions for this building; however, there are no transactions for studio apartments (0BR) at all (all registrations relate to 1- and 2-bedroom units). In the open DLD rental data for Binghatti Gateway there are also no rental contracts whatsoever. This is typical for new developments, where most units are initially registered to investors and the rental history appears later.

For the Al Jadaf area itself, a large sample has been formed — almost 10,000 sales and more than 40,000 rental contracts have been recorded, which ensures high market liquidity and good quality of average statistics. All rental and price dynamics figures cited below are specifically for Residential/Flat in Al Jadaf, since there is physically no such data for the building and the master project.

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

2. Volumes and structure of transactions, liquidity

On the sales side, Binghatti Gateway shows a fairly high number of registrations (327), which confirms strong activity and buyer interest in this asset — above average for a typical tower in the area.

In the rental market, the building is not yet represented — most likely it is at the occupancy stage (or a buy-to-hold ownership model is being chosen). For rental yield assessment and benchmarking, the area-level data is used.

The Al Jadaf market is quite mature: tens of thousands of sales and rental transactions have been recorded, which allows for robust analytics and dynamics to be aggregated by year/quarter.

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

3. Sale and rental price dynamics (Al Jadaf area)

Sales:
The average price per 1 sq m of completed apartments (Residential/Flat) in Al Jadaf based on closed transactions over the last 12 months is 19,636 AED/m².
The range of deals over the year is from 2,160 AED/m² to 61,550 AED/m², but the overwhelming majority of transactions fall within 12,000–22,000 AED/m².
Quarterly data over the last 3–4 years shows noticeable volatility: after a low in the 11,600–12,400 AED/m² range in 2022, the market has moved up to 19,000–22,000 AED/m² by 2024–2025 and even higher in some quarters. The reference point should be the latest 12‑month snapshot (19–20k AED/m² area average).

Rent:
The average annual rate for long-term rentals in Al Jadaf over the last 12 months is 965 AED/m² (based on valid Residential contracts, with anomalies removed).
The distribution range is from 29 to 152,900 AED/m². The range is extremely wide due to the inclusion of rare or incorrect contracts, but the vast majority of new agreements fall within 700–1,200 AED/m²/year.
Dynamics: since 2022 the average rental rate in the area has grown from 730–750 AED/m² and has stabilised at 900–965 AED/m² by 2024–2025, reflecting rising demand and migration into Al Jadaf as a cluster of new, higher‑class projects.

4. Comparison of the building and the area

Since no 0BR (studio) transactions in Binghatti Gateway have been registered and there are no rental contracts for this building, the assessment is only possible at the Al Jadaf area level.

The average price per square metre of completed residential property in the area (over the last year) is around 19,636 AED.
The average rental rate is 965 AED/m²/year.
This is comparable to (or slightly above) the average figures for Dubai Health Care City Phase 2, which indicates the area’s attractiveness for business-class tenants and investors with a budget of 1.4–1.9 million AED for an apartment of 70–100 m².

5. ROI and fair value range for an investor

The yield calculation is based solely on the area-level data (Al Jadaf).

Annual return on invested capital (gross yield, ROI) for the area:
ROI_brutto = 965 / 19,636 ≈ 4.9%

Taking into account upfront costs (7–8% for commissions, DLD fees and registration), the adjusted (net) yield is:
ROI_net ≈ 4.5–4.6%

To reach a target yield of 7–8% per annum, the entry price per deal must be in the range of 12,063–13,785 AED/m² (calculated as rent_psm/target_roi):
Fair price range for an investor: 965 / 0.08 = 12,063 AED/m², 965 / 0.07 = 13,785 AED/m².

The current market price is 30–40% above this corridor. This means that the Al Jadaf market, like most new districts, is geared more towards capital appreciation than towards generating high rental yields in the short term. Achieving a 7–8% ROI is only possible with a substantial discount to the average entry price.

6. Forecast and recommendations

Binghatti Gateway is a new asset in an area with high sales liquidity and rapidly growing rental demand. However, according to current DLD data, there are no studio (0BR) transactions in this building, and no rental history at all. Al Jadaf demonstrates impressive growth in price per sq m over 3 years and a stabilisation of rental rates around 950–970 AED/m²/year.

The current ROI at the area level is below a typical investor’s target benchmark (4.5–5% after costs versus the desired 7–8%). Given the historical trend and the area’s liquidity, acquiring such assets may be more attractive for end users and for investors focused on long-term capital growth. For “dividend-style” income, it is reasonable to look for a discount or to focus on assets with a smaller gap between purchase price and annual income.

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