ROI analysis of apartment in CORAL RESIDENCE: DLD data and real deals

1. Definition of the area and data structure

Actual location of the building: According to DLD, the CORAL RESIDENCE building is located in the Nadd Hessa area, master project Silicon Oasis. The analysis focuses on one-bedroom apartments (1BR) using verified names from the DLD database.

2. Market volume and liquidity

Since 2020, 86 sale transactions for one-bedroom apartment units have been recorded in CORAL RESIDENCE. For comparison, over the same period more than 11,000 apartment transactions were registered in Nadd Hessa, which confirms high liquidity and stable demand in the area’s market. Rental contracts directly for CORAL RESIDENCE and for the Silicon Oasis master project could not be identified in DLD; all rental estimates are therefore based on the Nadd Hessa area level, where the sample consists of tens of thousands of contracts.

3. Price dynamics over 3–5 years

Average sale price per square metre in CORAL RESIDENCE (1BR) by quarter:
– 2021: 4,100–5,200 AED/m² (quarterly fluctuations), start of growth.
– 2022: 4,875–5,080 AED/m²; smoothly positive trend.
– 2023: growth from 5,700 to 6,200 AED/m², acceleration of the positive trend.
– 2024: confident growth continues, quarterly values of 6,100–7,600 AED/m².
– Latest data (Q4 2024–Q1 2025): transactions recorded at 7,600–8,300 AED/m².
– In 2025–2026 several transactions were recorded at elevated levels (9,000+ AED/m²), but this may reflect seasonal spikes and a limited sample.

For Nadd Hessa the dynamics are similar, but the overall price level is higher:
– 2021: 6,000–6,400 AED/m².
– 2022: 6,000–8,500 AED/m² (growth accelerated noticeably from mid-year).
– 2023: 7,200–7,900 AED/m², with a trend towards further increase.
– 2024: stepwise growth — from 8,800 to 11,700 AED/m² (individual quarters with peaks).
– Last 12 months: the average price in the area was 14,255 AED/m².

4. Rentals: level and dynamics

For one-bedroom apartments in CORAL RESIDENCE, no recent rental contracts are recorded in DLD. At the Nadd Hessa area level, apartments (Flat) are represented by a large, representative sample of contracts.

– Dynamics of average annual rent per m² (Nadd Hessa):
– 2021: 490–510 AED/m².
– 2022: 510–550 AED/m².
– 2023: confident growth to 640–760 AED/m² by quarter.
– 2024: further growth, quarterly averages of 650–740 AED/m².
– Last 12 months: average area level — 755 AED/m².

The typical difference between quarters over the past two years has not exceeded 5–8%; the trend is stable, with no signs of recession.

5. Comparison of current levels: building vs area

Over the last 12 months:
– Average asking price in CORAL RESIDENCE (1BR): 8,655 AED/m².
– Average price in Nadd Hessa: 14,255 AED/m² (65% above the building’s level).

This indicates that CORAL RESIDENCE in recent years has been selling at a noticeable discount to the area’s average market level — possibly due to the specifics of the building itself, its micro-location, or the characteristics of the internal layouts and spaces.

– Average annual rental level in the area (the correct benchmark, as there is no data for the building): 755 AED/m².

6. Yield (ROI) assessment and investment fair price

Since there are no confirmed rental contracts for the building itself, all yield and “fair price range” calculations are made only at the area level.

– Calculated gross yield (brutto ROI) for the area: 755 / 14,255 ≈ 5.3% per annum at current market sale and rental prices.
– Adjustment for transaction costs (net ROI): 5.3% / 1.07 ≈ 5.0% per annum.
– Fair price range for an investor targeting 7–8% yield: 755 / 0.08 = 9,440 AED/m² (upper bound for 7%), 755 / 0.07 = 10,785 AED/m² (lower bound for 8%).
– The market price of CORAL RESIDENCE (8,655 AED/m²) lies within this range. This means that purchasing a 1BR in this building and renting it out at the average area rate can deliver a yield above 8% per annum — assuming no additional costs or vacancy periods.

7. Summary and outlook

CORAL RESIDENCE (1BR) is a liquid asset against the backdrop of rapid development in Nadd Hessa and Silicon Oasis, but in recent years it has been selling significantly below the area’s average market level. The growth in prices and demand for apartments in the area is very pronounced, indicating potential for further capital appreciation and stable rental attractiveness. The investor’s main return at the current stage is driven by the entry-price discount rather than an elevated rental rate, which reduces overall risk when buying for long-term holding or leasing.

The rental market is extremely active; the area demonstrates strong demand from both tenants and buyers. The drawback is the lack of recent rental contracts for the specific building: an investor should base projections on the area benchmark rather than count on a rental premium.