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1. Defining the area and data structure
Actual location: according to DLD, the Binghatti Gems building is located in Al Barsha South Fourth, within the Jumeirah Village Circle master project.
Sales data volume: the database records 71 transactions with 1BR apartments in this building, which allows for a full-fledged quantitative analysis. There are no valid rental contracts either for the building itself or for the master project, so to assess the rental market and yields we have to rely on the benchmark for the Al Barsha South Fourth area.
2. Transaction and price dynamics for the building
For 1-bedroom apartments in Binghatti Gems, the bulk of transactions took place in 2021–2023, with a wave-like pattern in the average price per square metre:
– At the end of 2021, the average price level was about 8,200 AED/m².
– In early 2022 there was a sharp spike to 9,800 AED/m², after which prices declined and in 2022–2023 remained in the 8,200–8,900 AED/m² range.
– In 2024 there has been a gradual decrease in the average price to 7,600–8,700 AED/m².
– Over the last 12 months there has been a notable increase: the average recorded sale price for 1BR units in the building is 11,500 AED/m² (an increase of almost 40% compared to 2023).
Transaction activity is low: throughout 2024 there have been 1–2 deals per quarter, which indicates acceptable but not high liquidity for a building in this segment.
3. Benchmark for the Al Barsha South Fourth area
The average price per m² for 1-bedroom apartments in the area has shown a steadily rising trend over the past 3 years:
– In the first half of 2022, the average price level was 8,900–9,500 AED/m².
– During 2023–2024 there has been strong growth: in 2023 the average price reached 12,300 AED/m², and in the last quarters of 2024 it was already 12,400–12,800 AED/m².
– Over the last 12 months, the area-wide average level amounted to 14,250 AED/m² — roughly 24% higher than the average price level in the latest sample for Binghatti Gems itself.
4. Rental market analysis
For Binghatti Gems and Jumeirah Village Circle, DLD does not contain sufficient data on current 1BR rents at the time of analysis — not a single valid contract over the last 12 months. This is typical for new buildings (the share of off-plan sales is still high), as well as for a limited sample in a new property.
For the Al Barsha South Fourth area, a substantial number of residential rental contracts has been recorded, which makes it possible to calculate an average annual rental benchmark:
– In 2022–2023, average rental rates increased from 620–810 AED/m² to 850–960 AED/m².
– Over the last 12 months, the average residential rent in the area is about 1,030 AED/m² per year (across all residential types; for individual 1BR units the rates are likely slightly higher, but the data cannot be isolated).
5. Current price levels and inputs for yield assessment
Average purchase price per m² in the building over the last 12 months: 11,500 AED/m².
Average purchase price per m² in the area over the same period: 14,250 AED/m².
Average rental level in the area over 12 months: 1,030 AED/m² per year.
6. Yield calculation
For Binghatti Gems, it is not possible to estimate the gross yield (ROI) due to the absence of rental contracts. Only an area-based calculation is possible:
– Gross ROI for the area: 1,030 / 14,250 ≈ 7.2% per annum.
– Net ROI, taking into account all entry costs (taxes, brokerage, registration) with a 7% adjustment: 7.2% / 1.07 ≈ 6.7% per annum.
7. “Fair” price corridor for an investor
For a target yield of 7–8% per annum, based on the average rental rate in the area:
– “Investment fair” price per m² = rent / yield = 1,030 / 0.08 → 12,880 AED/m² (for 8%); 1,030 / 0.07 → 14,714 AED/m² (for 7%).
Thus, for a target yield of 7–8% per annum, the current benchmark of average prices in the area is broadly in line with these guidelines (at the current price level in the building you are potentially achieving a yield significantly above the market due to a historically lower entry price).
8. Liquidity and outlook
Binghatti Gems is a typical representative of the new Jumeirah Village Circle segment, with moderate liquidity. From the perspective of a 1BR buyer, the building is trading below the area average (by 19–24%), which increases its investment appeal, assuming stable rental demand.
Risks: the lack of confirmed rental contracts in the building itself complicates an individual investment calculation for the asset, however the area as a whole is showing growing demand both for purchases and for rentals.
Summary for an investor: the current transaction prices in Binghatti Gems are noticeably below the area level; the area’s gross ROI indicates a fair yield range of 7–8% at the average rental rate. The building is promising for income-focused acquisition, but you should carefully calculate the actual yield at this point based on real incoming tenants.
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