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

1. Definition of the area and data structure

Actual location: the REVA RESIDENCES building is fully attributed to the Business Bay district (and the Business Bay master project) according to DLD data. In DLD the building is also recorded as a separate project, which allows for a granular transaction analysis. Additionally: the analysis is based on 1-bedroom apartments.

2. Sales volume and transaction dynamics

Over the entire period of available data (2020–2024), 512 transactions for 1-bedroom apartments were completed in REVA RESIDENCES. The building shows stable market activity — transaction volumes are well distributed by quarter starting from 2020, the handover period, with peaks in 2022 and a subsequent stabilization in transaction frequency.

Average price per square meter dynamics for the building over the last 3–4 years:
– In 2020–2021, average prices per m² were in the range of 12,000–20,000 AED, with noticeable fluctuations correlating with market downturns and upswings.
– In 2022–2024, the level stabilized while showing growth: by 2024 the average price reached 21,200–21,600 AED/m². The dynamics over the last 4 quarters show additional growth; the current average price for the last 12 months is 21,167 AED/m².
– For comparison: in Business Bay the average price for 1-bedroom apartments over the same 12 months is significantly higher — around 24,658 AED/m², i.e. REVA RESIDENCES is currently cheaper than the district “benchmark” by roughly 14%.

Average deal sizes and prices in the building and in the district are similar, but the building is slightly more affordable to purchase compared to the district average.

3. Rental market and liquidity

For rental contracts on 1-bedroom apartments specifically in the REVA RESIDENCES building and the Business Bay master project, DLD does not contain a sufficient amount of data (not a single valid contract has been recorded). Therefore, an analysis of rental rates and an ROI calculation for the building are not possible.

Instead, we rely on statistics for the entire Business Bay district (84,167 contracts). The average rental cost over the last 12 months in the district is 1,330 AED per m² per year based on valid DLD contracts (all apartments in Business Bay, i.e. without a narrow 1-bedroom sample).

District-wide dynamics over the last 3–4 years:
– Before the COVID period, rental rates were 700–900 AED/m²;
– In 2022, growth begins: values reach 800–900 AED/m²;
– 2023–2024: a sharp acceleration to 1,200–1,350 AED/m².

4. Yield (ROI) and fair value adjusted for income

– It is not possible to calculate a valid ROI (and a fair price range) for REVA RESIDENCES due to the absence of DLD rental contracts for 1-bedroom apartments in the building.
– For Business Bay, using valid data: the average gross yield (brutto ROI) is about 5.4% per annum (1,330 / 24,658).
– Taking into account initial transaction costs (7–8% at entry), the “net” yield (net ROI) may be around 5.0% per annum or slightly lower.

Fair price range for an investor targeting a 7–8% annual rental yield (using the district as a benchmark):
– If we take the district rental rate of 1,330 AED/m², then the fair price for a target rental yield of 7–8% is 16,625–19,000 AED/m².
– Current market prices are above this range (both in REVA RESIDENCES and in the district), so when buying at market level the yield will be in the 5.0–5.4% range.

5. Comparison with the district and outlook

– REVA RESIDENCES is sold on average slightly below the Business Bay district level for the “1 bedroom” segment.
– Rental rates in the district are growing rapidly, which supports future liquidity and payback.
– Transaction and rental liquidity in the district is very high.
– The current ROI in the district (excluding taxes/expenses) is 5.0–5.5%. To reach 7–8%, one would need to buy an apartment at a discount to the current market (around 16,500–19,000 AED/m²).
– The building is suitable for an investor targeting high demand and long-term capital appreciation, but not for a purchase aimed at achieving a “pure” above-market yield without a discount.

6. Summary:
– REVA RESIDENCES has high liquidity; the building is on par with the district in terms of transaction activity.
– The potential for further price growth is moderate; the gap with the district is small (the building is slightly cheaper).
– There is no DLD data on actual rentals for the building itself — ROI and alternative investment conclusions can only be reasonably calculated using the district benchmark.
– For an investor targeting a 7–8% yield, at current prices neither REVA RESIDENCES nor the wider district are suitable without a substantial discount to market.