ROI analysis of apartment in RUFI GARDENS: DLD data and real deals

1. Definition of the area and data structure

Actual location: RUFI GARDENS, Al Warsan First district, master project International City Phase 1.
All analysis is based on actual DLD data: for both sales and rentals, a filter was applied for the RUFI GARDENS building and the Al Warsan First district.

2. Transactions and liquidity

A total of 18 sale transactions for two-bedroom apartments (2BR) in RUFI GARDENS have been recorded.
Transactions are distributed by quarter from 2021 to 2024, averaging 2–4 deals per quarter, which indicates moderate liquidity for the secondary market. Several deals have also been completed over the last 12 months, confirming ongoing demand.

The number of registered rental contracts for the entire building over recent years is high (327 contracts), which indicates strong tenant demand and confirms rental liquidity.

3. Price per m²: dynamics and level

Over the past 3–4 years, the average price per m² for two-bedroom apartments in the building has been in the range of 4,300–6,200 AED/m²:
– 2021: 4,464–5,531 AED/m²,
– 2022: 4,670–4,928 AED/m²,
– 2023: 4,351–5,466 AED/m²,
– 2024 (to date): 4,940–6,192 AED/m².
The trend is moderately upward, with a noticeable increase in 2023–2024.

For comparison: the current average price per m² for apartments in Al Warsan First over the last 12 months is 6,496–7,192 AED/m². Prices for 2BR units in RUFI GARDENS are 13–15% below the district average, which is related to the building’s specific location and segment.

The average price per m² for the last two transactions in the building over the past 12 months is 6,192 AED/m².

4. Rental dynamics and levels

In RUFI GARDENS, the average annual rental rate per m² over the last 12 months amounted to 616 AED/m² per year (with a large volume of contracts, which makes the calculation robust).
For comparison, in Al Warsan First over the same period the average rent is 681 AED/m² per year.

Rental dynamics in RUFI GARDENS show confident growth: from 390–480 AED/m² in 2021–2022 to 530–565 AED/m² in 2023–2024.

5. Building vs district comparison, yield (ROI)

Current figures (last 12 months):
– Average purchase price per m² for 2BR in the building: 6,192 AED/m².
– Average rental rate per m²: 616 AED/m² (building), 681 AED/m² (district).

Annual “gross” ROI for RUFI GARDENS (based on actual prices and rents over 12 months):
– For the building: about 9.95% per annum (616 / 6,192).
– For the district: about 9.47% (681 / 7,192).

Taking into account standard upfront purchase costs (around 7–8% for registration, commissions and discounting), the estimated “net” ROI for RUFI GARDENS at the moment is around 9.2–9.3% per annum (a rough division of the gross ROI by 1.07–1.08).

As a benchmark for investment-fair value: if an investor targets a yield of 7–8% per annum, the fair price range for 2BR units (at current rental levels) is 7,700–8,800 AED/m². This is above current market levels, indicating a market premium on the tenant side and a phase of a rising market.

6. Conclusions and outlook

RUFI GARDENS in Al Warsan First is characterized by stable secondary market turnover and confirmed rental demand. Apartment prices in this building are traditionally below the district average, while rental rates remain competitive and deliver very high gross yields (up to 10% per annum before entry costs).

The growth rates of rents and prices over the past 2 years exceed the district average, making the asset attractive for an investor with a 3–5 year horizon. However, it should be borne in mind that such a high ROI reflects current market conditions and may decline as prices in the building catch up with the district average.

Active leasing and a stable number of sale transactions support the investment appeal of RUFI GARDENS as a resale and rental asset on the secondary market.