ROI analysis of apartment in Silicon Heights: DLD data and real deals

ROI analysis of apartment in Silicon Heights: DLD data and real deals

Updated: 10 March 20265 min read


1. Definition of the area and data structure

Actual location: According to DLD, the Silicon Heights building belongs to the Nadd Hessa area, master project Dubai Silicon Oasis.

There is no deal data in the database specifically for 2-bedroom apartments (2BR) in Silicon Heights, however, more than 130 completed apartment transactions have been recorded in the building overall. This allows us to use the building as a representative benchmark for sales and to compare it with the wider Nadd Hessa area.

For rentals: no recent 2BR rental contracts were found specifically for the building, but there is a significant volume of rental transactions for Silicon Heights as a whole. This makes it possible to conduct a robust analysis of the average rental price per m² and its dynamics for both the building and the area.


2. Liquidity and transaction volumes

Silicon Heights demonstrates a stable level of liquidity: over the last 4 completed years the number of apartment transactions in the building has been growing: 3 (2020), 5 (2021), 19 (2022), 23 (2023), 31 (2024). In 2025, 50 transactions have already been captured in the sample (likely including some dated in the upcoming calendar period).

At the Nadd Hessa area level, apartment transaction volumes are even higher: more than a thousand transactions in each quarter over the last 2 years, confirming strong activity and interest in the area.

The volume of rental contracts in the building is very high: in just the last few months, dozens of new agreements have been registered, and at the area level we are talking about thousands of contracts per quarter.

Conclusion: both the building and the area have high liquidity, with no shortage of demand for either purchase or rental.


3. Price and rental dynamics over 3–5 years

Long-term sales dynamics for Silicon Heights:
– In 2020–2021 the average rate was in the range of 4,600–6,500 AED/m².
– From 2022 there was a sharp acceleration in growth: from 6,000–6,200 AED/m² to ~8,800 AED/m² by 2025.
– Over the last 12 months the average transaction price in the building has been around 8,600 AED/m².
– For Nadd Hessa the trend is even more pronounced: in 2022 — 6,200–8,600 AED/m², in 2024 — on average from 8,800 to 14,400 AED/m²; over the last 12 months the average level is 14,400 AED/m².
– Thus, Silicon Heights is currently noticeably cheaper than the area average (lagging by around 35–40%).

Rental rate dynamics (for the building):
– Rent per m² has been growing throughout recent years: from 450–600 AED/m² in 2020–2021 to 860–950 AED/m² as of 2025.
– Over the last 12 months, the average for Silicon Heights is about 865 AED/m²/year.
– For Nadd Hessa — an average of 736 AED/m²/year over the last 12 months.

Conclusion: both sale prices and rental rates have been growing steadily, with growth accelerating over the last 2 years. Since early 2024 a gap has opened between the building and the area in terms of average sale price: Silicon Heights is cheaper to buy, while its rental level is slightly above the area average.


4. Comparison of current levels: building vs area

– Average sale price per m² over the last 12 months:
– Silicon Heights: 8,594 AED/m²
– Nadd Hessa (area): 14,405 AED/m²

– Average rental rate per m² over the last 12 months:
– Silicon Heights: 865 AED/m²/year
– Nadd Hessa: 736 AED/m²/year

Silicon Heights is currently significantly cheaper than the area in terms of sale price, which increases its investment appeal given that rental rates are at a comparable level.


5. ROI and fair price range calculation

– Gross yield for Silicon Heights (last 12 months):
– ROI_brutto (building): 865 / 8,594 ≈ 10.1%
– ROI_brutto (Nadd Hessa area): 736 / 14,405 ≈ 5.1%

– ROI_net (building), taking into account typical transaction costs (≈ 7–8% on entry and vacancy time discount):
– ROI_net ≈ 10.1% / 1.07 ≈ 9.4%

– Investment “fair value” price range for a 7–8% annual yield (based on current DLD rental levels in the building):
– Lower bound: 865 / 0.08 ≈ 10,810 AED/m²
– Upper bound: 865 / 0.07 ≈ 12,360 AED/m²

In other words, the current average market price in Silicon Heights (~8,600 AED/m²) is below the fair range even for an investor targeting a 7–8% yield. For sellers, this is a signal to reassess the asset’s potential; for buyers, the current level offers a yield above the area average.

For comparison: in Nadd Hessa the current market is already “overheated” — net ROI is around 4.5–5.1%, and it is no longer possible to buy at a 7%+ yield without a discount to market.


6. Overall conclusion

Silicon Heights (Dubai Silicon Oasis, Nadd Hessa) offers an excellent balance between purchase price and potential income: the building is still significantly cheaper than the area average, while rental rates are slightly above the area level. This provides a rare net yield above 9% in the Dubai market, based on recent real transactions confirmed by DLD.

The asset’s liquidity is very high in both channels — it is actively bought and rented out, with the rental market well diversified by apartment types.

Over a 3–5 year horizon, a gradual alignment of the building’s prices with the area is likely, while yields will normalize closer to 7–8% as purchase prices rise.

For investors, this is a rare opportunity to enter “below market” on the sale side, while preserving the current rental level and securing a yield 2–3 percentage points above the area benchmark.

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