ROI analysis of apartment in GLITZ RESIDENCE 1: DLD data and real deals

1. Area definition and data structure

Actual location: GLITZ RESIDENCE 1 is located in the Al Hebiah Second area, within the Dubai Studio City master project. The building name fully matches the DLD database, and both the area and the master project are unambiguously identified via a direct query to the transactions database.

The volume of valid sales data for this building is quite solid: over 100 transactions have been recorded in total, and for 1-bedroom apartments (1 b/r) there is a consistent sales history over the last 5 years.
According to DLD_rent_contracts, there are no rental contracts for 1-bedroom apartments either in the building itself or within the GLITZ RESIDENCE 1 master project. At the area level (Al Hebiah Second), however, there is a large rental database (6,200+ contracts for residential apartments), so rental rates and yields are calculated using the area benchmark.

2. Dynamics, transaction volumes and liquidity

For GLITZ RESIDENCE 1 (1 b/r), stable activity has been recorded at least since 2020. On average, between 5 and 13 transactions per year are concluded for apartments of this type (13 in 2024, 12 in 2023, 6 in 2022). This indicates relatively good liquidity for the affordable housing segment in Dubai Studio City.

At the Al Hebiah Second area level, the market is much larger: over the last 12 months, almost 600 transactions for 1-bedroom apartments have been recorded, and the total number of rental contracts runs into the thousands per year, which points to strong demand both for purchase and for rent.

3. Price dynamics per m² (1-bedroom apartments)

In GLITZ RESIDENCE 1, quarterly data over the past 3–4 years show a steady upward trend in the average price per m². At the beginning of 2021, the average price was around 4,400–7,700 AED/m², then by the end of 2023 it reached 7,200–7,300 AED/m², and in 2024 it surpassed the 9,000 AED/m² mark. Over the last 12 months, the average price per m² in the building has reached 9,770 AED.

For comparison, in Al Hebiah Second the average price per m² in the 1-bedroom segment over the last 12 months was around 14,200 AED (significantly higher than in GLITZ RESIDENCE 1 and other lower-class projects), and in the current year quarterly values have often exceeded 13,000–14,000 AED/m².

Thus, GLITZ RESIDENCE 1 is still trading at a discount to the area’s average market levels — roughly 30% lower.

4. Distribution/level of rental rates (Al Hebiah Second area)

DLD rental statistics show no contracts for 1-bedroom apartments in GLITZ RESIDENCE 1 itself or in the master project, so all estimates are based on the area level.
The average annual rental rate per m² for residential apartments in Al Hebiah Second over the last 12 months was 1,080 AED/m². Recent quarters show further growth, to 1,050–1,230 AED/m² depending on the season, which is a positive signal for investors.

5. ROI for the building and the area, fair price range

Since there are no direct rental contracts for the building in the DLD database, the investment yield is assessed using the area benchmark:

Average purchase price per m² in GLITZ RESIDENCE 1, 1-bedroom apartments, over the last 12 months: 9,770 AED/m².
Average rental rate per m² in the area over the last 12 months: 1,080 AED/m².

Indicative gross ROI based on the area: 1,080 / 9,770 ≈ 11.1% per annum.
Estimated net ROI after accounting for initial costs (≈8%): 11.1% / 1.08 ≈ 10.3% per annum.

If we consider a target yield corridor of 7–8% for an investor:

Fair entry price (for a target yield of 8%): 1,080 / 0.08 = 13,500 AED/m².
For a 7% target: 1,080 / 0.07 = 15,430 AED/m².

The current market price in GLITZ RESIDENCE 1 remains SIGNIFICANTLY below this range: 9,770 AED/m², which may be explained by the specifics of the building, its year of construction or its positioning (comfort class).

6. Conclusions and outlook

GLITZ RESIDENCE 1 remains one of the most budget-friendly purchase options in Dubai Studio City / Al Hebiah Second, as evidenced by the substantial discount in price per m² versus the area’s average market level. Transaction volumes in the building are consistently high, and buyer demand is not in doubt.

Rental yield cannot be reliably assessed at the building level — only at the area level — and even at the area level it significantly exceeds the “typical” yields of more expensive assets, reaching 10–11% gross (up to 10.3% net). This is a very high figure for Dubai. From an investment perspective, for a conservative investor the “fair” entry price range is in fact above the current prices in this building, which creates a visible advantage in terms of potential yield.

Over a 3–5 year horizon, the key question is whether the gap between the building and the area will narrow, or whether the asset will remain in the lower segment of the area. At the moment, DLD data confirm strong demand for both rent and purchase, as well as market resilience and significant upside in yield at current price levels.