ROI analysis of apartment in Royale Residence 1: DLD data and real deals — 12.12.2025

1. Definition of the area and data structure

Actual location: According to DLD, the building ROYALE RESIDENCE 1 belongs to the Al Hebiah Fourth area and the Dubai Sports City master project. All analytical comparisons with the area and master project are based on these parameters. The sample was formed from transactions involving two-bedroom (2BR) apartments in this building.

2. Transaction volume and dynamics for the building and the area

Transaction volume: Over the entire registration history, 18 sale transactions of 2BR apartments in ROYALE RESIDENCE 1 have been recorded. The quarterly sales frequency is moderate: over the last 4 years only isolated transactions have been registered, with no spikes in activity and no signs of mass resales.

Price dynamics: The average price per square metre (AED/m²) for 2BR apartments in ROYALE RESIDENCE 1 by quarter:

– 2021, Q4: 5,052
– 2022, Q4: 7,204
– 2023, Q2: 6,100
– 2023, Q3: 4,417
– 2024, Q4: 6,891

For comparison, for 2BR units across Al Hebiah Fourth as a whole:
– 2022, Q4: 6,138
– 2023, Q2: 6,683
– 2023, Q3: 7,729
– 2024, Q1: 9,086
– 2024, Q4: 10,469

Over the last 12 months, the average purchase price in the building was 7,119 AED/m², while the comparable figure for the area was 10,249 AED/m² (i.e. the building is cheaper than the area by roughly 30%).

The price range in the building was between 4,400 and 9,000 AED/m² depending on the period and specific transaction.

3. Rental market analysis (based on DLD database)

As of the analysis date, there are no active rental contracts for 2BR apartments in ROYALE RESIDENCE 1 registered in the DLD database, nor for the Dubai Sports City master project. Therefore, a rental and yield analysis for the building is not possible.

For Al Hebiah Fourth, over the last 12 months the average annual apartment rental rate (various sizes and layouts) stands at 894 AED/m²/year. Rental dynamics show confident growth: in 2022 the level was around 520–580 AED/m², and by the end of 2024 it is expected to reach 820–900 AED/m².

4. Purchase vs rent comparison. Yield assessment

For the building (ROYALE RESIDENCE 1, 2BR) there is no data on actual rentals, so it is not possible to calculate yield for the building.

For the area (Al Hebiah Fourth), comparison:
— Average purchase price over the last 12 months — 10,249 AED/m²;
— Average rent over the last 12 months — 894 AED/m²/year.

Rough calculated gross yield (ROI_brutto) for the area = 8.7% per annum.
If we factor in initial transaction costs of 7–8% of the purchase price, the expected “net” yield (ROI_net) for the area can be in the range of 8.1–8.2% per annum.

A fair price range for an investor targeting a 7–8% annual yield (using the area as a benchmark):
— For 7% ROI: 894 / 0.07 = 12,771 AED/m²,
— For 8% ROI: 894 / 0.08 = 11,175 AED/m².

The market price in the area (10,249) is significantly below the “fair investment” level, which indicates no overvaluation and a yield buffer. In the building itself, however, liquidity is below average and the price is below the area average.

5. Additional conclusions on liquidity and outlook

Liquidity of ROYALE RESIDENCE 1 for 2BR units is average: transactions do occur, but not regularly (no more than 2 per year), which is typical for mid-budget buildings in Dubai Sports City.

Overall, the area has seen stable growth in both sale prices (especially in 2023–2024) and rental rates over the past 2 years, indicating solid demand from both tenants and buyers.

Outlook for an investor: the building is currently trading at a discount to the area, which may be attractive for a long-term purchase; however, the absence of actual rental contracts for the building in DLD points to low transparency of yields specifically for ROYALE RESIDENCE 1. Extrapolating area indicators to the building should be done with caution — actual occupancy and rental rates may differ.