ROI analysis of apartment in MIRDIF TULIP: DLD data and real deals

1. Area definition and data structure

Actual location: According to DLD, the MIRDIF TULIP building is formally part of the Mirdif area, within the Uptown Mirdif master project. The analysis is based on the residential apartment segment (sub-type: Flat).

Data volume: The DLD database records 109 sale transactions for the MIRDIF TULIP building and 288 active rental contracts. This is a sufficient sample to derive short- and medium-term market indicators based on actual transactions.

2. Liquidity and transaction volumes

Over the past five years there has been stable activity both in sale transactions and in the signing of new lease agreements. The highest sales frequency was recorded in 2023–2024, with up to 37 deals in 2024. This indicates decent asset liquidity and solid buyer interest. The rental stock in the building is diversified by apartment type, making it convenient both for investors and for end users.

3. Price and rental dynamics over 3–5 years

Sales: Data on the average price per square metre (AED/m²) for apartments filtered by the building is highly fragmented for the “0 b/r” format, with no quarterly or annual figures even for the last 1–2 years. All further dynamics are therefore based on revenues and areas of all apartments in the MIRDIF TULIP building (the building as a whole).

— For MIRDIF TULIP, average prices per m² fluctuated in the range of 7,700–15,500 AED/m² from 2020 to 2024, without a clear, sustained upward or downward trend.
— In the last four quarters (2024) there has been growth in the average price per m²: quarterly values increased from ~9,200 to ~11,550–15,560 AED/m². However, the system was unable to calculate a 12‑month rolling average (across all apartments in the building) due to the high dispersion by type and size.

Area (Mirdif): The average price per m² in the area over the last 12 months is 21,643 AED/m² (DLD data). In Mirdif, both at building and area level, the market is dominated by completed mid‑segment homes and apartments.
— Area dynamics show the presence of extreme values in certain quarters (abnormally high readings in Q2 2022 and Q2 2025, likely one‑off outlier deals). Otherwise, over the last 3 years the quarterly price per m² has remained in the 9,500–11,200 AED/m² range.

Rent: For MIRDIF TULIP there is a large number of current contracts. The average annual rental rate per m² over the last 12 months is 887 AED/m² for the building and 543 AED/m² for Mirdif as a whole.
— Intra‑building dynamics: over the last 4 quarters the building shows rental stabilisation in the 740–790 AED/m² range, with an expected annual average of ~887 AED/m² for the last year. The area trend is lower, but there is significant dispersion depending on asset condition and segment.

— By apartment type: studios are leased above the building average (~962 AED/m²), while 1‑bed and 2‑bed units are in the 695–785 AED/m² range.

4. Comparison of current prices and rents with the area

— For MIRDIF TULIP, the average rental level over the last year is significantly higher than the area benchmark (887 vs 543 AED/m²), which reflects a more modern building standard or a strong property management company.
— For sales, estimating the average price per m² specifically for studios (0BR) is difficult, as there are no valid recent transactions under this filter. For the building as a whole, average values across all apartments fluctuate around 9,200–11,550 AED/m².
— In Mirdif, the average price per m² over the last year is 21,643 AED/m², but on a quarterly basis the pricing level for mainstream stock is around 9,500–11,200 AED/m².

5. Yield assessment (ROI)

— For MIRDIF TULIP:
– Average rental rate over the last 12 months: 887 AED/m².
– There is no valid data on the average market price of studios (0BR), but for the building the average price range is 9,200–11,550 AED/m².
– Indicative gross ROI for the building (assuming 10,000 AED/m² as a current notional average): 887 / 10,000 = 8.9%.

— For Mirdif:
– Rent: 543 AED/m² per year.
– Price per m²: 21,643 AED/m².
– Gross ROI for the area: 543 / 21,643 = 2.5%.

— Adjusting for costs (DLD + broker + other expenses, ~8% of purchase price): net ROI for the building will be ≈ 8.9% / 1.08 ≈ 8.2%. For the area — around 2.3%.

6. Fair price range for an investor (target 7–8% yield)

— For MIRDIF TULIP (average rent_psm = 887 AED/m²):
– “Investment fair value” range at a required yield of 7–8%: 11,087–12,671 AED/m² (887/0.08 – 887/0.07).
– Based on actual transactions, in recent quarters the building has been trading within or slightly below this range, which suggests that the stated ROI can realistically be maintained over a 1–2 year horizon (excluding capex and vacancy).

— For Mirdif (rent_psm = 543 AED/m²): a reasonable price corridor for an investor targeting 7–8% is 6,788–7,757 AED/m².

Therefore, the price premium of MIRDIF TULIP versus the wider area is justified by its higher rental levels and the specific building’s popularity, and no additional “fair” discount to the market is required for the end investor.

7. Key takeaways for an investor:

The building demonstrates stable market liquidity; transaction and rental dynamics support sustained investor demand.
ROI for the building is significantly above the area benchmark, while the price per m² range supports the target annual yield (without extrapolating to all studios, as there are few sales for that type).
Entry price can be fine‑tuned to preserve a 7–8% yield even after transaction costs.
The investment potential of MIRDIF TULIP appears notably stronger than the area average, but when buying studios it is important to focus on the building‑wide averages rather than isolated deals.