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

1. Definition of the area and data structure

Actual location: The Binghatti Point building is confirmed by DLD data as being located in the Nadd Hessa area, master project Silicon Oasis. The analysis uses only actual sales transactions and lease contracts for the building and the Nadd Hessa area.

Database volume: 212 sale and purchase transactions have been registered for Binghatti Point. The rental database records 101 contracts in the “2 bed rooms+hall” format (2-bedroom apartments). Rental data is detailed from 2022 to the present.

2. Liquidity and demand

Sales: For 2-bedroom apartments, the transaction dynamics in Binghatti Point have been stable since late 2021, averaging several deals per quarter. This indicates consistent demand from both investors and end users. The peak activity was in 2021–2022; afterwards, volumes have remained at a stable, moderate level.

Rentals: For 2-bedroom apartments (2 bed rooms+hall) in Binghatti Point, new leases are signed on a regular basis — 6–12 new contracts are recorded each quarter, confirming strong rental demand.

3. Purchase price dynamics

The average price per m² for 2-bedroom apartments in Binghatti Point by quarter since 2021 shows the following trends:

– Starting price in H2 2021: 5,360–6,250 AED per m².
– 2022: gradual growth to peaks in the 6,900–7,300 AED per m² range.
– 2023: a volatility phase, with quarterly averages ranging from 5,600 to 8,400 AED per m².
– Over the last 12 months, the average purchase price per m² for 2-bedroom apartments in Binghatti Point has been 8,114 AED.
For comparison, across Nadd Hessa as a whole (all apartments), over the last 12 months the average purchase price per m² is significantly higher at 14,433 AED. This indicates that Binghatti Point is currently trading well below the area benchmark — 44% lower than the district average.

4. Rental rate dynamics

For long-term leases of 2-bedroom apartments (2 bed rooms+hall) in Binghatti Point, the quarterly dynamics since 2022 are as follows:

– 2022: average annual rent of 500–520 AED/m².
– 2023: growth to 617–638 AED/m² by year-end.
– 2024 (current period): values increased to 649 AED/m² at the beginning of the year, with fluctuations in recent quarters between 596–667 AED/m².
– Over the last 12 months, the average rental rate for 2-bedroom apartments in Binghatti Point has been 759 AED/m² per year.

There is no comparable rental data for this apartment format across Nadd Hessa in the current sample, so ROI and fair prices are assessed only at the building level.

5. Comparison of the building and the area

– Average market purchase price per m² (12 months): Binghatti Point — 8,114 AED, Nadd Hessa — 14,433 AED.
– Average rent per m² (12 months): only for Binghatti Point — 759 AED (insufficient data for the area).
– The price/rent ratio in Binghatti Point is significantly more attractive than the area averages: for tenants — low purchase cost relative to current rent (for owners — higher yields).

6. Yield calculation (ROI)

According to DLD data for the last 12 months:

– Gross yield (ROI_brutto) for Binghatti Point (2-bedroom apartments): 759 AED / 8,114 AED ≈ 9.36% per annum.
– After adjusting for typical transaction costs (≈7%): net yield (ROI_net) is estimated at around 8.74% per annum (9.36% / 1.07).
– Fair (“investment market”) price range for a target yield of 7–8% per annum: 759 AED/m² / 0.08 = 9,488 AED/m² (upper bound), 759 / 0.07 = 10,843 AED/m² (minimum price at 7%).
The actual market price (8,114 AED/m²) is below this range, making the building attractive for an investor targeting a yield above 8% per annum. To reach a 7–8% yield, the price in the building could even increase by 15–33%, aligning with this range.

7. Outlook and conclusions

– For 2-bedroom apartments, Binghatti Point shows stable demand and, based on open DLD data, offers yields for investors above the area average.
– The building is trading significantly below the area benchmark, while rents have already reached levels close to the wider market, resulting in very high gross and net yields.
– The dynamics of transactions and rentals indicate good liquidity and convenience of this building for tenants in this segment over a 3–5 year horizon.
– Prices in Nadd Hessa are rising sharply, and the current price discount of the building provides upside potential both for capital appreciation and for rental rates.

8. Brief investment recommendation

The asset may be of interest to an investor focused on income with minimal drawdown in liquidity and capital risk. At the moment, the building allows you to achieve 8.7–9.4% net per annum without taking on additional market risk. The DLD-based market purchase price comes at a significant discount to the area, which, against the backdrop of strong demand, supports further growth potential. To calculate your personal yield, be sure to clarify the individual parameters of the apartment, potential renovation costs and actual achievable rent (DLD figures are averages).