1. Area definition and data structure
Actual location: RED RESIDENCE building, 1-bedroom apartments (1BR), is recorded by DLD as being in Al Hebiah Fourth, within the Dubai Sports City master project. All analysis and comparisons below are based specifically on this community and master project, with data verified against the DLD sales registry.
2. Sales: dynamics and current level
A total of 162 transactions for 1BR apartments have been recorded in this building (with high activity in recent years).
The average price per square metre for 1-bedroom apartments in RED RESIDENCE over the last 12 months was 7,705 AED. Over the past four years, prices have shown steady growth from around 5,900 AED per quarter in 2022 to 7,700–8,700 AED/m² in 2024.
For comparison: across the area (Al Hebiah Fourth, 1BR units only) over the same period, the current average purchase level stands at 8,738 AED/m², meaning RED RESIDENCE is priced about 12% below the area average. This may indicate some upside potential or reflect structural specifics of the building compared with its surroundings.
Transaction dynamics show sustained activity, accelerating from 2022 onwards: volumes in the building are increasing, and the area as a whole demonstrates stable demand and a revival both in terms of the number of deals and the average price per m².
3. Rental market
For RED RESIDENCE itself and for the Dubai Sports City master project, no 1-bedroom rental contracts have been identified in the DLD database over the last 12 months, or the available data is insufficient for representative statistics. Accordingly, it is not possible to honestly calculate rental levels and yields for this building based on DLD contracts.
Across Al Hebiah Fourth (without breakdown by bedroom count due to the lack of 1BR data), the average annual rent for all apartments over the last 12 months was 903 AED/m², with a consistently rising trend: from 610–730 AED/m² in 2023 to around 900 AED/m² by summer 2024.
4. Yield (ROI) and fair price range for an investor
A gross yield (ROI_brutto) calculation can only be made reliably at the wider area level:
– Average sale price per m² (area): 8,738 AED
– Average rent per m² (area): 903 AED
The calculated gross ROI_brutto for the area is about 10.3% per annum before expenses, which is a very strong figure for Dubai.
Adjusting for entry costs (around 7%), the net yield (ROI_net) is approximately 9.6%.
The fair purchase price range for a target yield of 7–8% is 11,300–12,900 AED/m². Thus, both the current average market price in the area (8,738 AED/m²) and in RED RESIDENCE (7,705 AED/m²) are below this range — meaning acquisitions are happening slightly below the formal fair-value levels for a target ROI of 7–8%. This indicates that the asset is attractive for an investor.
5. Conclusions on liquidity, demand and outlook
Liquidity of RED RESIDENCE and the wider area is assessed as high: a stable flow of transactions, rapid price growth, and tens of thousands of rental contracts annually across all apartments in the area. Dubai Sports City/Al Hebiah Fourth shows a cyclical but pronounced increase in both prices and rental rates after 2021, broadening the differentiation of the housing stock and supporting investment appeal.
RED RESIDENCE is being sold (and likely bought) noticeably cheaper than the area average, which creates potential for capital appreciation over a 3–5 year horizon. If a different, reliable rental benchmark for the building appears in the future, its yield may even exceed the area-wide level.
Limitations of the analysis: for the building itself and for 1BR units, there is a visible absence of rental contracts in DLD (this is usually associated with buildings where tenants sign contracts off-register, or with a small number of investors). Accurate yield and fair-value estimates for RED RESIDENCE 1BR units should be revisited in the future as new contracts are recorded.
Related Articles
- How to sell an apartment in Dubai in Orion Building – analysis 2025
- ROI analysis of apartment in Binghatti Nova: DLD data and real deals
- How to sell an unit in Dubai in The Tower – analysis 2025
- ROI analysis of apartment in Joya Blanca Residences: DLD data and real deals
- ROI analysis of apartment in OLYMPIC PARK 4: DLD data and real deals
