ROI analysis of apartment in Binghatti Royale

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

Updated: 9 March 20265 min read


1. Definition of the area and data structure

Actual location: According to the DLD register, Binghatti Royale is located in Al Barsha South Fourth and is part of the Jumeirah Village Circle master project. For this building, the DLD transactions database shows 361 sale-purchase deals and 37 new lease contracts over the last 1–2 years, which provides a sufficient volume for building-level statistical analysis.


2. Liquidity and market volume

There is a strong flow of transactions in Binghatti Royale: 182 deals in 2024, 170 in 2025, and already 9 at the beginning of 2026. The rental volume is also substantial for a new building (37 contracts over the past 12 months). Overall, the project demonstrates good liquidity: a steady inflow of new owners and tenants, which is favorable for an investor.


3. Apartment price dynamics for the building and the area

Over the past 12 months, the average sale price of an apartment in Binghatti Royale was approximately AED 22,370 per m². A significant share of transactions in the building is for compact units (studios and small 1-bedrooms), so all estimates are averaged for sizes from 10 to 120 m².

At the Al Barsha South Fourth area level, the average price per m² over the same period was about AED 15,850 per m². Thus, Binghatti Royale trades at a 41% premium to the area’s average market level, which is typical for new towers in the contemporary segment.

Quarterly dynamics (building, last 1.5 years):

– Q4 2024: AED 15,707/m² (162 deals)
– Q1 2025: AED 16,793/m² (19 deals)
– Q2 2025: AED 17,887/m² (9 deals)
– Q3 2025: AED 21,279/m² (57 deals)
– Q4 2025: AED 25,057/m² (71 deals)

In Al Barsha South Fourth, prices in Q2–Q4 2024 and 2025 have been growing smoothly (from AED 13,415 to 16,794 per m²), but not as fast as in Binghatti Royale.


4. Rental rate dynamics and levels

In Binghatti Royale, the average achieved rent over the last 12 months was about AED 1,395/m² per year (37 contracts). This is a very high rate for the market, noticeably (by 34%) above the area average: in Al Barsha South Fourth the average rent over the same period was AED 1,044/m², with the area showing fairly even growth in recent years.

Quarterly analysis of rents in the building (recent quarters):

– Q4 2025: AED 1,417/m² (28 contracts)
– Q1 2026: AED 1,324/m² (9 contracts)

At the area level, the dynamics are less pronounced, but the growth rate is noticeable: from AED 849–967/m² in Q1–Q4 2024 to AED 962–1,066/m² in Q1–Q3 2025.


5. Comparison of market and rental levels. ROI

The current average transaction price in Binghatti Royale is significantly higher than in surrounding new developments in the area; similarly, rental yields for owners are also above average.

Estimated current yield indicators (based on the last 12 months):

– Binghatti Royale (building):
Annual rent per m² — AED 1,395, average purchase price — AED 22,370/m²
Brutto ROI = 1,395 / 22,370 ≈ 6.2% per annum

– Al Barsha South Fourth (area):
Annual rent — AED 1,044, average purchase price — AED 15,850/m²
Brutto ROI = 1,044 / 15,850 ≈ 6.6% per annum

Taking into account standard transactional and entry costs (~7–8% of the purchase price), the adjusted net ROI will be around 5.7–5.8% per annum for the building and 6.1–6.2% for the area.

Investment-fair purchase price range for a target yield of 7–8% per annum:

– For Binghatti Royale: 1,395 / 0.08 = AED 17,438/m² to 1,395 / 0.07 = AED 19,929/m²
– For the area: 1,044 / 0.08 = AED 13,050/m² to 1,044 / 0.07 = AED 14,914/m²

This means that current deals in Binghatti Royale are closing with a substantial premium to the 7–8% yield range (the actual price exceeds investment-fair levels by 10–30%). Such a premium is typical for a popular new building with hype-driven demand, but for a long-term investor it implies a lower expected return compared to the wider area.


6. Conclusions and outlook

Binghatti Royale is a liquid and in-demand asset in the fast-developing Jumeirah Village Circle (Al Barsha South Fourth) area. High sales velocity at launch has driven a significant price increase in recent periods. Property in this building is consistently rented at the upper end of the market, but the current market price is ahead of the area averages and does not provide a 7–8% annual target yield for a buyer today.

For a holder with a 3–5 year horizon, the risk of a major price correction is low: demand and the area’s dynamics support the current price level, although a further explosive growth similar to 2024–2025 is already unlikely. This building is more suitable for personal use or a long-term strategy than for aggressive investment with maximised yield.


7. Machine-readable block for charts

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