1. Definition of the area and data structure
Actual location: According to DLD, the Sobha One project (also registered as “SOBHA ONE”) is located in the Ras Al Khor Industrial First area. No master project is recorded in the database. The analysis is based on this area and on the project as a whole.
Data availability: The DLD records more than 3,000 transactions for this project. For 1BR apartments in Sobha One, transactions appear only from 2024. As for rentals: there are currently no active 1BR rental contracts within the project itself, which is explained by the development stage (off-plan or early handover). At the same time, there is sufficient rental data for Ras Al Khor Industrial First to provide an objective market picture.
2. Liquidity and transaction dynamics
Sobha One shows very strong investor interest: the sales wave started in 2024 (158 transactions in Q1 2024; almost 1,800 in Q2 2024). This is typical for large-scale projects under construction or just handed over at launch.
Data for subsequent quarters show lower but still significant volumes — the market is starting to shift towards selective resales. Overall, the project is characterized by high liquidity in the primary market and a large volume of investment.
3. Price dynamics per m² for 1BR apartments
Average price per square meter for 1BR in Sobha One by quarter:
2024:
– Q1 — 23,595 AED/m²
– Q2 — 24,187 AED/m²
– Q3 — 23,999 AED/m²
– Q4 — 24,105 AED/m²
2025:
– Range: 24,018–24,450 AED/m², with no recorded growth or decline; prices are stable.
For comparison, in Ras Al Khor Industrial First over the same quarters and for the same unit type, the average price is similar (difference within 0.5%), which is logical given the dominant impact of Sobha One on the 1BR market in this area (the project is new, large-scale, and has no same-class competitors).
Average price per m² over the last 12 months for 1BR:
– In Sobha One: 24,145 AED/m²
– In the area: 24,134 AED/m²
In this case, it is fair to say that the current market purchase level is formed primarily by transactions in Sobha One.
4. Rental rate and its dynamics
Within Sobha One itself (and for the project overall), there are currently no relevant rental transactions for 1BR units, which is explained either by the early handover stage or by occupancy specifics. Therefore, the area-level rental benchmark is used to estimate market rent.
Over the last 12 months, the average annual rental rate per square meter for all residential apartments in Ras Al Khor Industrial First has been 1,037 AED/m². The historical dynamics over the past two years ranged from 870 to 1,190 AED/m², and in the current year (based on recent quarters) values have stabilized in the 950–1,080 AED/m² range. This confirms steady demand; however, the area is still not perceived as premium by tenants, and the spread of rental rates remains quite wide.
5. Comparison of purchase and rent (yield and ROI calculation)
As of today, the gross yield for 1BR apartments in Sobha One, based on the last 12 months, is as follows:
– Purchase: 24,145 AED/m² (Sobha One); rent: 1,037 AED/m² (area).
– Approximate gross yield: 1,037 / 24,145 ≈ 4.3% per annum.
– Taking into account mandatory entry costs (DLD fee, commissions, registration, vacancy and service charges — in total around 7%), the indicative net level drops to roughly 4.0%.
For an investor targeting an ROI of at least 7–8% per annum, the fair price range for purchasing a 1BR apartment in this area (at the current rental level) should be between 12,960 and 14,820 AED/m² (calculation: 1,037 / 0.08 and 1,037 / 0.07). The market price in Sobha One is almost 1.7 times higher than this indicative “investment fair value” zone. This means that investments at current prices are justified only for long-term buyers and those who prioritize product quality or see strong price growth potential on a 5+ year horizon. For a purely investment profile focused on high yield, entering at current market levels is not advisable.
6. Prospects for investors and conclusions
– Project liquidity is excellent; transaction volumes are comparable to the city’s largest premium new developments.
– Prices in the building are very stable and slightly above the area average due to the developer’s reputation and product quality.
– The upside potential for prices is constrained by the purchasing power in this location, and ROI over the coming years remains moderate.
– For conservative rental-focused investments, the project is not optimal (low yield at current prices), but it is well suited for “buy-and-hold” strategies and for end users seeking a high residential standard.
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