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

1. Definition of the area and data structure

Actual location: Binghatti House is located in Al Barsha South Fourth, within the master community Jumeirah Village Circle (JVC), according to DLD data. The building and project name in the database fully match the filter used.

The DLD database contains over 921,000 sale transactions and almost 4.8 million lease contracts across the market, which ensures high data completeness for this area and segment.

2. Liquidity: transaction and rental frequency

For Binghatti House (studios – 0-bedroom units):
– 16 studio sale transactions were completed over the year.
– 26 studio lease contracts were registered over the last 12 months.
– In total, 71 studio sales and 177 lease contracts (all residential types) have been recorded in the building.

This indicates fairly high liquidity for both sales and rentals specifically in this building.

3. Sales dynamics for the building and the area (studios)

Average price per m² (AED) dynamics for Binghatti House (studios, quarterly):
– 2023, Q3: 19,915
– 2023, Q4: 20,091
– 2024, Q1: 20,892
– 2024, Q2: 20,393
– 2024, Q3: 20,832

Average sale price per m² over the last 12 months in Binghatti House: 20,112 AED (16 transactions).

For comparison — average price per m² dynamics for studios across JVC, Al Barsha South Fourth:
– 2023, Q3: 14,207
– 2023, Q4: 15,431
– 2024, Q1: 15,389
– 2024, Q2: 15,398
– 2024, Q3: 15,979

Average price in the area over 12 months: 17,603 AED (6,084 transactions).

Conclusion on prices: Binghatti House trades at a premium to the area (around +14%), which points either to the project’s recency or to higher quality compared with the JVC average.

4. Rental rate dynamics for the building and the area (studios)

For Binghatti House (studios):
– Quarterly rental values per m² are in the range of 1,550–1,720 AED.
– Average rental rate per m² over the last 12 months: 1,627 AED (26 contracts).

For JVC (Al Barsha South Fourth):
– Average rental rate over 12 months: 1,271 AED/m² (7,069 studio contracts).

Thus, the area shows a slightly lower rental rate than the building itself — the difference is substantial, around 28% (Binghatti House is more expensive).

5. Yield (ROI) comparison and the “fair” price range for an investor

Brutto ROI for Binghatti House (based on the last 12 months):
– Gross yield: 1,627 / 20,112 = 8.1% per annum.

Brutto ROI for the area (JVC studios):
– Gross yield: 1,271 / 17,603 = 7.2% per annum.

Taking into account the main transaction costs (around 7–8% of the purchase price), the actual/net yield will be lower:
– For the building: 8.1% / 1.08 ≈ 7.5% per annum.
– For the area: 7.2% / 1.08 ≈ 6.6% per annum.

“Fair” price range for a target yield of 7–8% (benchmark for calculations):
– For the building: to achieve 7–8% per annum, the purchase price for studios in Binghatti House should be in the range of 20,337 – 23,243 AED per m², with the current average at 20,112 AED per m², meaning the “investment fair” price almost coincides with the market.
– For the area: a similar range is 15,893 – 18,157 AED per m²; the current price is 17,603 AED. For the area, the price is close to the upper boundary of the “investment price corridor” at 7% per annum.

6. Market outlook

Key takeaways:
– Binghatti House demonstrates high liquidity — in terms of both the number of sale transactions and lease contracts, the project remains consistently in demand.
– The average studio price is above the area level, which may be driven by the building’s recency/quality and its premium positioning.
– The rental rate in the building is noticeably higher than the area average, which also indicates strong demand.
– The actual ROI at the time of assessment exceeds typical “investor” benchmarks (target 7–8%) for both the building and the area; however, taking ancillary costs into account, the net ROI for Binghatti House would fall at the lower to mid-upper end of the expected range. For an additional safety margin on new purchases, it is advisable to target deals not above the current average price in the building.
– Recent quarterly dynamics for both prices and rents indicate a favourable trend. If the current price and rental levels are maintained, the project has the potential to remain an attractive income-generating asset in the medium term.
– For JVC studios: the substantial volume of sales and rentals points to high liquidity and stable demand (dozens of transactions per quarter in the building alone, and thousands across the area).

Summary: Binghatti House can be considered an attractive option for purchasing a studio both for own use and for investment income — its price and yield are in line with, or slightly outperform, the area benchmarks. The project is particularly appealing to investors focused on quick leasing with minimal vacancy and stable income in the studio segment.