ROI analysis of apartment in Reportage Village 1: DLD data and real deals

1. Definition of the district and data structure

Actual location: According to open DLD data, the building Reportage Village 1 is territorially assigned to the Wadi Al Safa 7 district. For this building and this apartment type (2 rooms), no transactions were found in the DLD, and there is no available information on sales and rentals for individual units in this building. Therefore, the subsequent analysis is carried out for Wadi Al Safa 7 at the level of the apartment market as a whole.

2. Market dynamics and structure by district

The transaction volume in Wadi Al Safa 7 over the past 4 years has been consistently high: from the beginning of 2021 to the present, more than 1,500 transactions have been recorded in the apartment market (Residential, Flat). This indicates stable liquidity and a solid level of both supply and demand.

The average price per square meter for apartments in Wadi Al Safa 7 has increased significantly over the past 3 years:
– 2021: on average about 4,900–6,600 AED/m² (by quarter)
– 2022: 7,800–9,300 AED/m²
– 2023: 8,500–9,500 AED/m²
– 2024 (current year): stabilization at around 8,400–9,600 AED/m²
The current 12‑month average for the district is about 9,790 AED/m². The three‑year growth exceeds 70%.

There is dispersion in the sample by unit size and price (transactions with areas of 10–1,000 m² were used, excluding outliers), which is typical for developing districts with a wide range of modern complexes.

3. Rental dynamics and levels

For Reportage Village 1, the DLD database contains no active rental contracts for 2‑room apartments — not only for the last 12 months, but for the entire available period. This is typical for new buildings and projects at the initial occupancy stage.

In Wadi Al Safa 7, the dynamics of the average annual rental rate per square meter for apartments (Residential Flat) has accelerated sharply in recent years:
– 2021: 535–575 AED/m²/year
– 2022: 550–630 AED/m²/year
– 2023: 620–950 AED/m²/year (acceleration in the 2nd half)
– 2024: 730–960 AED/m²/year and higher

The average rental rate for apartments over the last 12 months in the district is about 928 AED/m²/year.

The 2‑room apartment segment is not analyzed separately — in the DLD database there are not enough contracts over the last 12 months to calculate an average rate specifically for Wadi Al Safa 7.

4. Price and rent comparison, yield calculation

Current price level for apartments in the district over the last 12 months:
– Around 9,790 AED/m²

Average annual rental rate for apartments:
– Around 928 AED/m²/year

Brutto ROI (gross yield before costs) for apartments in the district is determined by the ratio of average rent to price:
– Brutto ROI for Wadi Al Safa 7 ≈ 9.5%

Taking into account typical entry transaction costs (DLD fee, brokerage, registration, etc., totaling 7–8%), the adjusted Netto ROI will be about 8.8–8.9%.

Calculation of the “investment fair price” range for a target yield of 7–8%:
– With a rental rate of 928 AED/m²/year, the range of investment‑justified prices is 11,600–13,250 AED/m².
– The current market average is slightly below these levels, meaning that investments at current district prices can generate 8.8–9.5% per annum, excluding taxes and vacancy.

5. Conclusions on investment attractiveness

The apartment market in Wadi Al Safa 7 is growing rapidly, with a notable increase in prices and a sharp rise in rents over the past 3 years. Liquidity is high, with a large number of transactions and new rental contracts. At the current market levels of prices and rents, an investor can expect a brutto yield of 9–9.5% per annum (before costs), which supports a fair assessment of the district as investment‑attractive. The basic yield benchmark (7–8% net) is met and even exceeded for a significant number of units.

For Reportage Village 1 itself, due to the absence of specific transactions and rental contracts in the DLD, one has to rely solely on district benchmarks. This does not allow for a precise assessment at this particular address, but it shows that overall market dynamics are favorable for new developments and complexes, and that investment parameters at the district level currently look attractive.

6. Limitations and recommendations

– For accurate individual expectations regarding yield and price specifically in Reportage Village 1, real transactions and rental contracts need to appear in the database after handover and occupancy.
– All yield calculations are based on average market indicators for Wadi Al Safa 7 and do not constitute a formal valuation or a guarantee of income for any particular apartment or building.