1. Defining the area and data structure
Actual location: According to open DLD data, SHERENA RESIDENCE is located in Wadi Al Safa 3, within the Majan master project. This is confirmed by a direct match of the building name in the transaction database. The asset is analysed using 2-bedroom apartments (“2 b/r” in sales) as the reference type. A total of 289 transactions have been recorded in the building, of which 117 relate specifically to 2-bedroom units. The surrounding area is predominantly residential, with strong demand for this format of apartments.
2. Liquidity of the asset and the area
Building liquidity:
- Transactions for 2-bedroom apartments have been recorded every year in recent years (2020: 2 deals, 2022: 1, 2023: 11, 2024: 84, 2025: 19), which indicates high liquidity.
- Over the past 12 months, a significant number of transactions have taken place in the building, further confirming steady demand for this type of unit.
The rental market also shows substantial turnover: more than 1,000 lease contracts have been recorded for the building (across all unit types). For the requested unit type, no direct contracts were recorded over the last year, but the current average rent for the building as a whole can be considered representative.
3. Sale and rental dynamics over 3–5 years
Sale prices (building, 2-bedroom apartments):
- Over the last year, the average transaction price per m² was around AED 9,733.
- In the quarterly price dynamics since 2023, the average price range has remained within AED 8,000–9,900 per m².
- For comparison: in Wadi Al Safa 3, the average price per m² over the past 12 months was AED 13,900 (for comparable apartments).
- The area’s quarterly dynamics show a smooth upward trend: AED 10,400–14,300 per m² over the past few years, with the area consistently trading at a premium to the building.
Rents (building):
- Over the last 12 months, the average annual rent in SHERENA RESIDENCE was AED 791 per m² based on valid contracts (only residential apartments with market-standard sizes and lease terms were included).
- For the area, the comparable figure is AED 807 per m².
- Quarterly dynamics for the building: rents have steadily increased from ~AED 500–600 per m² in 2020–2022 to AED 700–830 per m² in recent quarters. For the area, the spread is slightly wider, with some quarters above AED 800 per m².
4. Comparison of the building and the area, analysis of current levels
SHERENA RESIDENCE is noticeably cheaper in terms of purchase price per m² than the average level in Wadi Al Safa 3 (9,733 vs 13,900 AED/m² over the last 12 months, a gap of almost 30%). Rental rates, however, are very close: 791 vs 807 AED/m² — a difference of less than 2%. This gives the building a clear advantage in terms of yield.
5. ROI (yield) and fair purchase price range
Gross yield (ROI_brutto):
- Building: average ROI_brutto = 791 / 9,733 = 8.1% per annum.
- Area: average ROI_brutto = 807 / 13,901 = 5.8% per annum.
Adjustment for entry costs (net yield):
- Taking into account standard transaction costs on entry (around 7%): ROI_net for the building is ≈ 7.6%, and for the area ≈ 5.4%.
“Fair price” for an investor targeting a 7–8% annual yield:
- For SHERENA RESIDENCE (average rent AED 791/m²): the investment-fair price range for a target ROI of 7–8% is AED 9,910–11,300 per m².
- The actual price per m² (AED 9,733) is slightly below the upper bound of this range, indicating market attractiveness for investors targeting this yield level.
- For the area as a whole, at the same rental level, the fair range is AED 10,100–11,500 per m², but the actual price is 27–33% above this interval. An investor would need a substantial discount to reach a 7–8% ROI due to the high entry price.
6. Investor perspective
For a buyer in SHERENA RESIDENCE, the key advantage is the significantly higher yield (by 2.2 p.p. or more above the area average), driven directly by the low entry price against stable rents. Both sales and rental dynamics are positive: despite new stock coming to market, average rents continue to grow steadily, and prices are converging towards the investment-fair range.
7. Key takeaways
- The building demonstrates stable liquidity in both sales and rentals.
- Investor yield in SHERENA RESIDENCE is substantially higher than the area average.
- Current rental levels are comparable with the wider area, while transaction prices in the building are noticeably lower than the location’s average.
- Assuming moderate market growth over the next 3–5 years, a purchase in SHERENA RESIDENCE is highly likely to remain attractive for investors targeting above-average yields for Dubai.
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