ROI analysis of apartment in SEVANAM CROWN: DLD data and real deals

1. Definition of the area and data structure

According to the DLD database, the building SEVANAM CROWN is registered in the Nadd Hessa area, master project Silicon Oasis. This definition was used strictly for the analysis: all benchmarks and comparisons were based only on the actual DLD area codes and the building name, without any manual reclassification.

The total number of sale transactions for the building is 49, and rental contracts — 381 (for the project within Nadd Hessa). For studio apartments, the sample size is sufficient for processing, especially at the area level.

2. Sale price dynamics and distribution

Over the past 4 years, studio transactions in SEVANAM CROWN have been recorded irregularly, but the trend in the average price per square metre is as follows:

– End of 2020: 5,885 AED/m²
– 2022: 6,024 AED/m²
– 2023 range: from 6,417 to 8,381 AED/m² (by quarter)
– 2024: gradual increase, range 6,600–9,625 AED/m² (12‑month trailing average — 12,795 AED/m²)
– For comparison: in Nadd Hessa, studios over the same period were sold at higher prices — on average 17,743 AED/m² over the last 12 months (the area shows high liquidity, with 3,034 studio rental transactions in just one year).

Trend: the building has seen a significant increase in the average price per m² over the last year, but prices still lag noticeably behind the area average.

3. Rental rates and liquidity

For SEVANAM CROWN, the average annualised rental rate for studios over the last 12 months amounted to 891.82 AED/m² per year. For Nadd Hessa, this figure is slightly higher: 985.47 AED/m². Liquidity in terms of the number of contracts is very high.

Rental dynamics in the building over the last 2–3 years ranged from 500–600 AED/m² in 2021–2022 to 950–1,026 AED/m² in recent quarters, reflecting steady growth in demand against the backdrop of active delivery of new projects.

4. ROI and investment appeal

Calculation based on DLD data for the last 12 months (studio transactions only):

– For SEVANAM CROWN:
– Average purchase price: 12,795 AED/m²
– Average rent: 891.8 AED/m² per year
– Gross ROI: 7.0% per annum
– For Nadd Hessa (studios, same filters):
– Average purchase price: 17,743 AED/m²
– Average rent: 985.5 AED/m² per year
– Gross ROI: 5.6% per annum

Adjustment to net yield (including entry costs of ~7%): approximately 6.5% for the building and 5.2% for the area.
The “fair” price range for a target yield of 7–8% based on the current rental level in the building is 11,150–12,740 AED/m². The current average price in the building is right at the lower bound of this investment range, while the area average looks overpriced for this level of ROI.

5. Conclusion: liquidity, outlook and comparative analysis

– Liquidity of the SEVANAM CROWN asset is above the building’s average (although it is lower in volume than the major new developments in the area).
– Demand is stable, and the price range has shifted upwards over the last year; rental rates are also showing steady growth.
– ROI for the building is higher than the area average, which indicates the absence of a current premium for the building’s “brand”. On the contrary, studios are attractive specifically for buy‑to‑let investors, provided that the building meets average market standards in terms of fit‑out and management.
– If the current trend continues and prices remain at today’s levels, there is no market premium for investors — pricing in the building is now roughly at the fair level for a 7% annual yield. Further growth is possible with a general increase in rental demand in the area or through redevelopment/improvement of building management.