ROI analysis of apartment in Samana Hills: DLD data and real deals


1. Definition of the area and data structure

Actual location: According to DLD, Samana Hills belongs to the Al Barshaa South Third area, master project Arjan. The DLD database contains at least 150 sale transactions for studios in this building, and the rental database shows 250 valid annual studio contracts over recent years. This provides a sufficient volume of information for a robust, unit-level (studio) analysis both within the building and across the area.

ROI analysis of apartment in Samana Hills: DLD data and real deals Continental Club Property LLC


2. Sales: dynamics, structure and current price

Frequency and dynamics of transactions:
– A stable number of studio sales has been recorded since 2020: from several to more than two dozen deals in individual quarters.
– Over the last 12 months, the number of transactions has remained at a notable level, indicating good liquidity of the building.

Dynamics of the average price per square metre for transactions in the building:
– An average price in the range of 13,000–15,000 AED/m² has been observed for most of the period, with occasional fluctuations.
– Over the last four quarters (current period), the average sale price of studios in Samana Hills was about 15,392 AED/m².
– The price range for actual studio transactions varied from 8,000 AED/m² (one-off outliers) to 18,000 AED/m², with the bulk (~80%) falling within 12,000–15,500 AED/m².

Comparison with the area:
– The average transaction price for studios in the last 12 months in Al Barshaa South Third was slightly higher — around 15,980 AED/m². Thus, Samana Hills is marginally cheaper than the area average (minus 3–5%), which may be related to positioning, competition or the presence of other, newer buildings.

ROI analysis of apartment in Samana Hills: DLD data and real deals Continental Club Property LLC


3. Rental: dynamics, level and structure

Volume and frequency of rental contracts:
– More than 250 studio contracts with valid data have been registered in Samana Hills, with a regular inflow of new agreements since 2022.
– This confirms stable tenant demand — the asset is well perceived by the market as an investment property for leasing.

Dynamics of the average rental rate:
– Since Q3 2022, the average rental rate has increased from approximately 1,020 AED/m²/year to 1,400–1,460 AED/m²/year at the moment.
– Over the last 12 months, the average rent for studios in Samana Hills amounted to 1,452 AED/m²/year.


4. “Building vs area” comparison in current metrics

Average purchase price of a studio over the last year: 15,392 AED/m² (building), 15,980 AED/m² (area).
Average rental rate for the same period: 1,452 AED/m²/year (building).
This shows that Samana Hills is trading slightly below the area average, while the average rental level is fully comparable with the standard benchmarks for Arjan — Al Barshaa South Third.


5. Investment return (ROI) calculation

Brutto ROI for studios in Samana Hills based on actual annual rental rates and current transaction prices over the last 12 months: 1,452 / 15,392 ≈ 9.4% per annum (excluding expenses).
Adjusting to netto (taking into account standard entry costs of 7%) gives approximately: 9.4% / 1.07 ≈ 8.8% per annum.

For a target yield of 7–8% (often considered a fair benchmark for residential rental investors), the “fair” purchase price range at the current rental level is: 1,452 / 0.08 = 18,150 AED/m² (upper bound, at 7% — 20,700 AED/m²).
The current average transaction price is 20–25% below this threshold — from an investor’s perspective, prices can be considered attractive, assuming rental demand is maintained.


6. Liquidity and outlook

Samana Hills shows a stable flow of both sale and rental transactions, confirming good liquidity within the building and strong demand for studios in Arjan. Rental growth has supported high investor returns even against the backdrop of a gradual increase in purchase prices. In the area overall, the dynamics are similar, and average price levels are highly comparable.

Risks for the investor: local adjustments of rental rates are possible as new competing projects come to market, but even taking this into account, current price and rental levels leave a margin for potential returns above market benchmarks.


7. Conclusion and recommendations

Samana Hills is a relevant choice for an investor focused on rental income. The building is slightly cheaper than the area in terms of purchase price, while rental rates are in line with or even slightly above the Arjan average. The potential yield based on transactions over the last 12 months is around 8.8% netto, which exceeds market benchmarks for highly liquid studios. For investors who prioritise quick exit options and stable occupancy, Samana Hills meets all key criteria.

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