ROI analysis of apartment in SILICON HEIGHTS2: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to the DLD database, the building SILICON HEIGHTS2 belongs to the Nadd Hessa area with the Silicon Oasis master project; the name in DLD also matches as both building_name_en and project_name_en. This allows us to compare the building’s data directly with the Nadd Hessa area to which it is officially assigned.

The sample for SILICON HEIGHTS2 includes 136 transactions over the entire period, and more than 12,500 for Nadd Hessa as a whole, which makes it possible to build stable area benchmarks.

2. Transaction dynamics and liquidity

The transaction frequency for SILICON HEIGHTS2 varies; there has been steady demand since the building was commissioned, starting from 2020. Since 2023, the pace of sales has accelerated: 6–13 deals per quarter over the last two years, indicating good liquidity both at the initial market entry stage and in subsequent resale activity.

3. Dynamics of average price per m² (studios, past periods only)

– SILICON HEIGHTS2: The price per m² for studios ranged from 6,000–11,000 AED/m² in 2021–2024, with volatility typical for new projects in the early operation phase. Over the last 12 months, the average level was 11,600 AED/m².
– Nadd Hessa area: The area average was slightly higher — 17,700 AED/m² over the last 12 months, with steady growth and historical values of 7,000–10,000 AED/m² up to 2022, followed by accelerated growth thereafter.

4. Rental dynamics and market levels

– Building rentals: The average rental rate (annualised and per 1 m² for all residential apartments, including studios) over the last 12 months in the building was about 856 AED/m² per year. For studios only — 979 AED/m² per year, but the sample is significantly smaller.
– Area benchmark: In Nadd Hessa, the average annual rent over the last 12 months is 736 AED/m².

The rental dynamics for the building show confident growth since 2021 — from 500–550 AED/m² to 700–900 AED/m² by 2024–2025, confirming a trend of rising demand.

5. Comparison of prices and rents: building vs area

– For sales in the building, the average price over the last 12 months (11,600 AED/m²) is significantly below the area average (17,700 AED/m²).
– For rentals, on the contrary, SILICON HEIGHTS2 shows a higher average rate than the area: 856 AED/m² versus 736 AED/m².

Thus, against the backdrop of the area, SILICON HEIGHTS2 appears relatively affordable in terms of purchase price per m² and slightly more expensive in terms of rental rate, which makes it attractive from a yield perspective.

6. ROI and fair price range

Calculation for SILICON HEIGHTS2:
– Average rental yield (brutto ROI) = 856 / 11,600 ≈ 7.4% per annum.
– After accounting for transaction costs (approximately 7–8% on entry), the effective (net) yield is estimated at about 6.9–6.8% per annum.

Calculation for Nadd Hessa:
– Area brutto ROI = 736 / 17,700 ≈ 4.2% per annum — significantly below the building level.
– Net ROI will be even lower (around 3.8–3.9%).

Fair investment price formula for a 7–8% target:
– For the building: 856 / 0.08 = 10,700 AED/m², 856 / 0.07 = 12,230 AED/m² — the current price is within the fair value range for a target ROI of 7–8%.
– For the area: the fair investment price range lies significantly below the actual market; the area-level yield does not reach the 7–8% target.

7. Overall assessment of prospects and liquidity

SILICON HEIGHTS2 is a building with high liquidity and stable demand both for sales and rentals. Historically, prices in the area have been moving upward, and for SILICON HEIGHTS2 over the last 12 months, rental yields (both brutto and adjusted) remain among the highest in the area. The apartment price in SILICON HEIGHTS2 is noticeably below the area benchmark, while the rental rate is higher, which makes the asset more attractive for investors focused on rental income.

Over the next 3–5 years, based on transaction dynamics and rental growth, we can expect this building to maintain or even increase its attractiveness for investors, provided the area does not overheat due to excessive supply and demand remains strong both for purchases and for long-term rentals.