ROI analysis of apartment in HZ RESIDENCES 4: DLD data and real deals

1. Definition of the area and data structure

Actual location: HZ RESIDENCES 4 is located in the Warsan Fourth area, within the master project International City Phase 3 (matching DLD data). All further comparisons at the building level are made specifically with the Warsan Fourth area. The key figures are derived using the project/building filter HZ RESIDENCES 4 and by area.

2. Liquidity and transaction volume

HZ RESIDENCES 4 demonstrates a high level of liquidity. Over the past 12 months, 65 apartment sale transactions have been registered in this building, indicating strong activity on the primary or secondary market.

Across Warsan Fourth as a whole, several hundred transactions per quarter have been recorded over the last four quarters, confirming the high liquidity of the location among investors and end users.

From a rental perspective, 52 lease contracts have been registered for HZ RESIDENCES 4 over 12 months, which is a sufficient volume for reliable average yield statistics.

3. Average price per m² dynamics — building and area

At the building level (HZ RESIDENCES 4), the average price per m² over the last 12 months stands at AED 9,174, with actual transaction values ranging from AED 5,820 to AED 11,104 per m².

Across Warsan Fourth for the same period, the average price is higher at AED 10,648 per m². The range in the area is wider (from AED 5,105 to AED 19,375 per m²), which is due to a more diverse stock — from budget/mid-range to a number of more expensive properties.

Quarterly dynamics:
– In HZ RESIDENCES 4, prices in 2024–2025 fluctuate between AED 8,358 and AED 10,497 per m². The quarterly average price mostly stays in the AED 9,300–9,700 per m² range, with isolated spikes above AED 10,000 in 2025 (likely the completion of sales of the most liquid or larger units).
– In Warsan Fourth there is substantial growth: in 2022–2023 prices were at AED 6,000–8,000 per m², with a sharp acceleration from 2024; by 2025 quarterly averages reach AED 10,675–11,204 per m². Thus, prices in the area are actively rising and have already overtaken HZ RESIDENCES 4, supporting demand and investment appeal.

4. Rental rate dynamics

For HZ RESIDENCES 4, the average annual rental rate per m² (over the last 12 months) is AED 835, with the quarterly range in 2025 between AED 829 and AED 838 per m², indicating stable rental income with a gradual upward trend.
Across Warsan Fourth over 12 months, the average rent is AED 759 per m². In recent quarters this figure has been gradually increasing: in 2025 quarters it stands at AED 702–798 per m² (based on more than 8,000 contracts).

This means that HZ RESIDENCES 4 is rented out at a rate significantly (~10%) above the area average, which can be interpreted as strong demand for new or higher-quality housing in this segment.

5. Building vs area comparison. Yield and fair price assessment

Average purchase price per m² over 12 months: HZ RESIDENCES 4 — AED 9,174; area average — AED 10,648.
Average rental rate per m²: building — AED 835; area — AED 759.

Brutto ROI for the building: 835 / 9,174 ≈ 9.1% per annum.
Brutto ROI for the area: 759 / 10,648 ≈ 7.1% per annum.

Adjusted to net ROI taking into account typical entry costs (7–8% per transaction): for the building, net ROI is approximately 8.4–8.5% per annum; for the area — 6.6–6.7% per annum.

“Fair investment price” range at a target yield of 7–8%:
– For the building: fair price — 835 / 0.08 = AED 10,438 per m² (for 8% per annum) and 835 / 0.07 = AED 11,929 per m² (for 7% per annum).
– The actual building price (AED 9,174 per m²) is below the lower bound of the fair range for a 7–8% target ROI. The current market offers investors a yield above expectations, making entry attractive.
– For the area: the fair price range of 759 / 0.08 = AED 9,488–10,843 per m² almost coincides with the actual average level (AED 10,648 per m²).

6. Outlook and conclusions for the investor

HZ RESIDENCES 4 is one of the most liquid buildings in its segment, with a high frequency of sale transactions, steady rental demand and rental rates that significantly exceed the area average.
The actual ROI based on sale and lease transactions (real DLD data) is above the 7–8% per annum target even after accounting for all additional entry costs.
Warsan Fourth has shown sustained price growth since 2023 and a gradual increase in rental rates, creating an additional cushion for returns over a 3–5 year horizon.

For an owner or investor in HZ RESIDENCES 4, the prospects of maintaining a yield of around 8.5% net per annum are strong, and the fair price level relative to the market indicates further capital appreciation potential. The level of liquidity ensures an easy exit from the asset without a forced-sale discount.