ROI analysis of apartment in SEVENTH HEAVEN: DLD data and real deals

1. Definition of the area and data structure

According to DLD, the actual location of SEVENTH HEAVEN is Wadi Al Safa 3, master project Al Barari (not indicated in all transactions; the main identifier is the SEVENTH HEAVEN project in Wadi Al Safa 3).

There are 130 recorded sales transactions for 2-bedroom apartments in SEVENTH HEAVEN. For rentals, contracts are registered under the SEVENTH HEAVEN project, but no new 2-bedroom leases have been recorded over the past 12 months. Therefore, the annual rental analysis is carried out at the level of the entire residential stock of SEVENTH HEAVEN and the wider Wadi Al Safa 3 area.

2. Liquidity of the property and the area

SEVENTH HEAVEN shows a stable volume of transactions for 2-bedroom apartments: on average 3–12 deals per quarter. Wadi Al Safa 3 records a significantly higher turnover for 2-bedroom units, which indicates high segment liquidity in this location. Rental contracts for SEVENTH HEAVEN are also recorded consistently, with a sample of more than 300 residential leases per year, while overall activity in the area is extremely high (hundreds to thousands of transactions per quarter).

3. Price dynamics per m² in the building and the area

For SEVENTH HEAVEN (2-bedroom apartments):

– From 2020 to 2024 there has been a confident increase in the average price per m²: from 8,800–11,000 AED/m² in 2020–2021 to 13,000–16,200 AED/m² in 2023–2024.
– The strongest spikes in average price are recorded in 2024 (up to 16,200–20,000 AED/m² in certain quarters), illustrating a significant positive trend. However, some record highs in 2024 may be driven by a few isolated high-value transactions.
– In Wadi Al Safa 3 (2-bedroom apartments) growth is more moderate: 8,000–10,200 AED/m² in 2020–2022, rising to 11,800–13,800 AED/m² in 2024–2025, but median values remain below those in SEVENTH HEAVEN.

Over the last 12 months, the average purchase price for 2-bedroom apartments was:
– In SEVENTH HEAVEN: ~18,463 AED/m².
– In Wadi Al Safa 3: ~12,616 AED/m².

Thus, SEVENTH HEAVEN sells at a substantial premium to the area (difference of ~46%).

4. Rental dynamics and levels

For rentals in SEVENTH HEAVEN (all apartments):

– The average rent over the last 12 months was 1,276 AED/m²/year.
– There is strong growth: 600–900 AED/m² in 2020–2022, around 1,100–1,300 AED/m² in 2024–2025.
– In Wadi Al Safa 3, the average rental level over 12 months is 800 AED/m²/year, with a historical range of 450–900 AED/m² in recent years.

Thus, in terms of rent SEVENTH HEAVEN significantly outperforms the area (a premium of more than 55%). This reflects the positioning of the complex as a premium segment within its district.

5. ROI assessment and fair price range

Calculation based on actual 12‑month averages:

– In SEVENTH HEAVEN:
– Price per m²: ~18,463 AED
– Annual rent per m²: ~1,276 AED
– Gross yield (ROI, gross): about 6.9% (excluding expenses).
– Taking into account typical upfront costs (~7% at entry), the indicative net yield is around 6.4% per annum.
– To reach target investment yields of 7–8% per annum, the fair price range is 15,950–18,230 AED/m² (formula: rent / 0.08 and rent / 0.07 respectively). The actual market price almost coincides with the upper bound of the investment range: transactions are closing within the “fair price” corridor for a 7% yield, but with a noticeable premium to the wider area.

– In Wadi Al Safa 3:
– Price per m²: ~12,616 AED
– Rent per m²: ~800 AED
– Gross ROI is only 6.3% (net ~5.9%), slightly below the “premium” building.
– The fair investment range for the area is 10,000–11,400 AED/m². The market price in the area is slightly above the threshold for the desired yield.

Conclusion: Buying a 2-bedroom in SEVENTH HEAVEN delivers a yield close to the target 7% per annum, but is not “super‑high‑yield” at current prices — the premium for quality and the project’s brand fully absorbs any excess return versus the area average. To return to an 8% ROI, a downward price adjustment of about 10–12% would be required. The opportunity may be attractive to investors who prioritise brand liquidity and stable demand from premium‑segment tenants.

6. Outlook for the area and the building

– Wadi Al Safa 3 shows steady demand, rapid growth in the tenant pool, and ongoing modernisation driven by new projects.
– SEVENTH HEAVEN is perceived as one of the top complexes in the area, with high liquidity and stable rental demand.
– The building’s price dynamics are outpacing the local market (the building is growing faster), while the premium to the area remains stable. This is a positive factor for long‑term investors focused on capital appreciation.
– The 2-bedroom segment reflects the general trends — both sale and rental prices are growing significantly faster than the area average.

7. Key risks

– The clear price premium of SEVENTH HEAVEN over the area may limit the potential for further price growth in the future (especially compared with competitors in Al Barari and new launches in the area).
– To achieve yields above 7% per annum based on the last 12 months, a substantial “discount at entry” is required (purchase price at least 10–15% below current market).