1. Definition of the area and data structure
Actual location: CORAL RESIDENCE is confirmed in the DLD database as being located in Nadd Hessa, within the Silicon Oasis master project. The analysis uses only up-to-date sales and rental transactions related to this building and this area.
There is sufficient data on sales of 2-bedroom apartments (2BR) in CORAL RESIDENCE — 29 transactions have been confirmed for the entire period, with steady deal activity over the past two years. For rentals, there are no contracts specifically tagged as 2BR, so the analysis is carried out at the level of the entire building (all residential units), and for the general benchmark — at the Nadd Hessa area level.
2. Liquidity and market volume
Over the past 3 years, transactions for 2-bedroom apartments in CORAL RESIDENCE have been recorded on a regular basis, indicating good liquidity. Over the last 12 months, at least 10 transactions with 2BR units have been completed in the building, and the total number of rental contracts (for all apartment types) exceeds 500 over the lifetime of the building.
In Nadd Hessa overall, activity remains high both in sales and rentals of residential apartments. Steady demand is confirmed by a stable flow of transactions and contracts both in the building and across the area.
3. Price dynamics over 3–5 years
The sale price per square metre in CORAL RESIDENCE (2BR) has shown mixed dynamics:
– In 2021 — around 10,600 AED/m² (single transaction).
– In 2022 and most of 2023 — in the range of 5,100–5,900 AED/m² (a significant drop followed by gradual recovery).
– From 2024, a confident uptrend has been observed: in spring 2024 the average deal was already at 10,100 AED/m², followed by a moderate decline to 7,800–8,500 AED/m²; the current average level for the last 12 months in the building is 9,313 AED/m².
For comparison, in Nadd Hessa the average sale price for apartments has been more stable and higher: up to 2022 — around 6,000 AED/m², from mid-2022 there is a jump to 8,400 AED/m², and in 2024 — growth to 11,700–15,000 AED/m². The average for the area over the last 12 months is 14,440 AED/m², which is roughly 55% higher than in CORAL RESIDENCE 2BR.
4. Rental rate dynamics and levels
At the CORAL RESIDENCE building level, rental rate dynamics for all apartments are as follows:
– 2020–2021: rates within 430–530 AED/m²/year.
– Gradual growth: by early 2023 — 530–570 AED/m², in 2024 — already 600–655 AED/m².
– Over the last 12 months the average rental rate in the building is 707 AED/m²/year.
Across Nadd Hessa as a whole, rental rates are also rising, but at a faster pace:
– Up to 2022 — 480–500 AED/m².
– In 2023 — 560–730 AED/m² by quarter.
– In 2024 the average rate for the area over the last 12 months is 738 AED/m²/year.
5. Market comparison and analysis: current values
– CORAL RESIDENCE 2BR (sales, last 12 months): 9,313 AED/m².
– Nadd Hessa (sales, last 12 months): 14,440 AED/m².
– CORAL RESIDENCE (rent, all units, last 12 months): 707 AED/m²/year.
– Nadd Hessa (rent, all units, last 12 months): 738 AED/m²/year.
Thus, the current purchase price in the building is significantly below the area’s average market level, while rental rates are only slightly below the local benchmark.
6. ROI, investment yield and fair value
Rough payback (ROI) calculation:
– Gross yield in the building = 707 / 9,313 ≈ 7.6% per annum.
– Gross yield in the area = 738 / 14,440 ≈ 5.1% per annum.
After accounting for transaction costs (around 7–8% on entry):
– Net yield in the building ≈ 7.6% / 1.07 ≈ 7.1% per annum.
– Net yield in the area ≈ 5.1% / 1.07 ≈ 4.8% per annum.
Fair price range for an investor targeting a 7–8% annual yield:
– For the building: indicative fair price from 707 / 0.08 = 8,840 AED/m² to 707 / 0.07 = 10,100 AED/m².
The current market level (9,313 AED/m²) fits well within this range.
– For the area: range from 738 / 0.08 = 9,225 AED/m² to 738 / 0.07 = 10,543 AED/m².
The market price in the area (14,440 AED/m²) is noticeably above the fair value corridor for a target yield of 7–8%, so apartments purchased at the area average will generate a yield below 5%.
7. Investor conclusions
– CORAL RESIDENCE (2BR) offers a yield above the area average: the purchase price is significantly below the broader Nadd Hessa market, while rental rates are close to the area benchmark. This makes the asset attractive for investment if the goal is to secure a yield of 7% or higher.
– The area as a whole is growing faster in prices than in rents, which means purchases at current market levels in Nadd Hessa now imply a net yield closer to 5%.
– The building has high liquidity and strong volumes in both sales and rentals, which minimises vacancy risk.
– 3–5 year outlook: if the current divergence in the growth of prices and rental rates persists, the attractiveness of the asset may remain or even increase, especially for yield-focused investors.
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