ROI analysis of apartment in GRAND HORIZON 1: DLD data and real deals

1. Area definition and data structure

Actual location: according to DLD transactions, the building GRAND HORIZON 1 belongs to the Al Hebiah Fourth area and the Dubai Sports City master project. The apartment type under analysis is 1 bedroom (based on DLD filtering by 1 b/r for sales). The sample for this building and apartment type includes 80 transactions, which allows for statistically valid conclusions on price dynamics and price levels.

2. Purchase price dynamics (1BR in GRAND HORIZON 1 and in the area)

Transaction dynamics since 2020 show a substantial volume of activity: a steady flow of deals in the building (typically 2–5 per quarter, with occasional spikes up to 10). The average price per square metre in GRAND HORIZON 1 for 1BR apartments has fluctuated between 4,600 and 7,800 AED/m² depending on the period, with isolated spikes (for example, 13,500 AED/m² at the beginning of 2023, which looks like a one-off anomalous case).

Over the last 12 months, the average transaction price for 1BR apartments in GRAND HORIZON 1 amounted to 7,100 AED/m² (based on actually completed transactions).

For comparison, in Al Hebiah Fourth the comparable figure for 1BR apartments over the last 12 months is 12,000 AED/m², which is significantly higher than in the building; the difference is around 70%.

Over the past 2–3 years the area has also seen a notable increase in price per m²: from 5,500–7,000 AED/m² to more than 10,000 AED/m² by 2024.

3. Rental data and yields

For GRAND HORIZON 1 (and even for the Dubai Sports City master project) there are no valid 1BR rental contracts in the DLD database — such rental transactions have not been recorded. Switching to the Al Hebiah Fourth area level provides representative data: over the last 12 months around 8,700 residential apartment lease contracts have been registered in the area, with an average annual rent across the entire residential stock of 910 AED/m².

Post-2022 rental dynamics in the area show steady growth: for the overall market of typical apartments, the average rate per m² has increased from 500–600 to 900 AED/m² and continues to grow moderately.

4. Building vs area comparison (12‑month window)

Average market transaction price for 1BR apartments over the last 12 months:

  • In GRAND HORIZON 1 — 7,100 AED/m².
  • In Al Hebiah Fourth — 12,000 AED/m².

The average annual rental rate in the area (for all apartment types) is 910 AED/m². There is no separate data specifically for 1BR units; averaged figures for the entire area are used.

It is not possible to calculate gross yield (ROI) for the building due to the absence of rental data specifically for 1BR units in GRAND HORIZON 1. For the area (as a benchmark for an investor):

  • Gross ROI (area) = 910 / 12,000 ≈ 7.6% per annum.
  • Taking into account standard acquisition costs (7–8%), the net ROI for the area will be ≈ 7.0% per annum (or slightly lower).

Fair investment price range (for a target ROI of 7–8% per annum), using the area’s rental rate:

  • With a target ROI of 8%: 910 / 0.08 = 11,400 AED/m².
  • With a target ROI of 7%: 910 / 0.07 = 13,000 AED/m².
  • The actual price in the building (7,100 AED/m²) is significantly below this range, while the area level (12,000 AED/m²) falls within the fair range.

5. Liquidity and conclusions

The building shows a steady flow of transactions (typically at least 3–4 quarterly deals for 1BR units), with strong market presence. In the area, liquidity is very high — thousands of sales and rental contracts per year; the upward trend in demand and average prices is confirmed by the last few years.

In terms of entry price for 1BR units, GRAND HORIZON 1 currently trades at a significant discount to the Al Hebiah Fourth market average. For an investor this may represent an entry point with potential upside, or the “investment gap” may be explained by the building’s specific characteristics (quality, age, unit layouts, image or operational history).

There is no factual data on rental rates specifically for this building, so ROI and fair price ranges can only be calculated at the area level. The area’s ROI is currently slightly above the market benchmark of 7–7.5%, and capital inflows are also reflected in price dynamics.

Overall: for a cautious investor, GRAND HORIZON 1 looks more attractive than the wider market in terms of price per m², while the actual achievable rent in the building requires separate verification (it is not reflected in DLD). The area as a whole maintains high liquidity, moderately rising rental rates and prices.

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