1. Definition of the area and data structure
Actual location: according to DLD, GLITZ RESIDENCE 2 belongs to the Al Hebiah Second area and is located within the Dubai Studio City master project. The database contains sufficient data for analysis of both the building and the area: more than 100 transactions have been identified for the building itself; however, over the past years no new rental contracts for 2-bedroom (2BR) apartments in GLITZ RESIDENCE 2 have been recorded – rental statistics are collected at the Al Hebiah Second area level for the same apartment type (2 bed rooms+hall).
2. Sales dynamics of 2BR apartments by building and area
Transaction activity for GLITZ RESIDENCE 2 (2BR apartments) by year:
– 2021: 2 transactions
– 2022: 3 transactions
– 2023: 5 transactions
– 2024: 5 transactions (recorded as of the request date)
Dynamics of the average price per m² (AED/m²) by quarter (2BR only in GLITZ RESIDENCE 2, followed by area-level data for comparison):
GLITZ RESIDENCE 2 (2BR):
– In 2021–2022 the average price remained at 5,700–6,000 AED/m².
– In 2023 there is significant volatility: Q1 – around 4,800 AED/m², but already in H2 2023 and further – a sharp increase, with values in the 7,400–8,900 AED/m² range by 2024.
– Over the last 12 months in the building (2BR), the average price reached 8,864 AED/m².
Dubai Studio City, Al Hebiah Second (2BR):
– The range is variable: 2022 – about 5,700–9,100 AED/m², 2023 — 7,700–9,800 AED/m², 2024 — on average 8,300–11,200 AED/m².
– Over the last 12 months, the average price in the area for 2BR reached 12,764 AED/m².
– Area-level prices consistently come out higher than directly in GLITZ RESIDENCE 2.
Conclusion: over the past year and a half GLITZ RESIDENCE 2 has been catching up with the area (in 2022 the building was cheaper by 25–35%, now the discount has narrowed to ~30%), but the gap is still substantial.
3. Rental distribution and dynamics
There have been no 2BR rental transactions in the building itself in recent years — most likely the rental pool is limited or owners are focused on long-term holding. In Al Hebiah Second, for the same 2 bed rooms+hall format, dozens and even hundreds of rental contracts are concluded annually.
Average rental rate per m² in Al Hebiah Second (2BR+hall over the last 12 months):
– 2023: growth from 648 to 686 AED/m² during the year.
– 2024: continued growth to 735–756 AED/m².
– Average rate over the last 12 months: about 740 AED/m².
4. Liquidity comparison
GLITZ RESIDENCE 2 remains liquid: the building is involved in sales every year, with an average of about 5–10 transactions per year just for 2-bedroom units. At the area level, the volume of contracts is much larger, which confirms overall market interest and an active rental component (in the area – 1,000+ new rentals of 2BR apartments over the last 3 years).
5. Current price levels and rental rates (over the last 12 months)
– GLITZ RESIDENCE 2, 2BR (price per m²): 8,864 AED/m²
– Area (Al Hebiah Second, 2BR): 12,764 AED/m²
– Area (Al Hebiah Second, 2BR rent): 740 AED/m²/year
GLITZ RESIDENCE 2 remains 30% cheaper in sales compared to the area average, but rental rates are calculated at the area level and are considered representative for the segment.
6. ROI and investment range
Calculation of gross yield (ROI_brutto) at the area level (based on DLD data; building-level rent cannot be calculated due to the absence of contracts):
– ROI_brutto = 740 / 12,764 ≈ 0.058 (5.8% per annum)
– Adjusted net ROI (taking into account purchase and entry costs of ≈ 7%): ROI_net ≈ 5.4% per annum
“Fair price for an investor” based on a target yield of 7–8% per annum:
– For 7%: 740 / 0.07 = 10,571 AED/m²
– For 8%: 740 / 0.08 = 9,250 AED/m²
Thus:
– The current average transaction price in the building (8,864 AED/m²) is even below the fair range: at these deal levels the property potentially provides the investor with a yield above 8%, assuming the average area rental rate can be achieved (an important note — area-level, not specifically GLITZ RESIDENCE 2).
– The average area sale price for 2BR has jumped above the upper limit of the fair corridor, signalling a decline in potential yield for new buyers at current area prices.
7. Outlook for investor/seller
– GLITZ RESIDENCE 2 currently retains investment appeal against the backdrop of significantly more affordable prices compared to the area and a stable, albeit not very high, transaction turnover.
– The area as a whole is appreciating faster than the specific building under review; the rental market is active, but competition among landlords is high.
– For an investor, a purchase at the current price level comfortably exceeds the minimum required yield (7–8%) — there is room for price growth or a relatively safe entry into the rental business, provided a tenant can be found at around the area-average rate.
– For a seller, it is reasonable to target the 9,200–10,600 AED/m² range as an “investment-fair” benchmark, which is 5–20% above the latest typical transactions in the building.
Risks:
– The substantial price gap between the area and the building may reflect physical quality, perceived quality, competition, or the liquidity of this particular asset.
– The absence of recent rental statistics in the building itself may indicate a specific ownership structure or constraints on rental activity.
Conclusion: GLITZ RESIDENCE 2 is one of the most liquid and reasonably priced entry points in the 2BR segment of Dubai Studio City; in theory, the yield exceeds 8%, but due to the lack of building-level rental data, risks are higher than for an “area-average” investment.
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