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1. Definition of the area and data structure
Actual location: According to DLD, the building SOBHA ONE is registered in the Ras Al Khor Industrial First district. The master project for this building’s units is not explicitly specified in the database. For the analysis, the district attribute is used exactly as it appears in DLD transactions.
Data structure and volumes:
– For SOBHA ONE (2-bedroom apartments), 107 transactions have been registered over the last 12 months, which indicates very high project liquidity.
– For rental rate analysis in this district over the last 12 months, 52 residential lease contracts were identified; however, none of them were concluded specifically for 2-bedroom apartments. Therefore, all rental and yield estimates are provided only at the Ras Al Khor Industrial First district level for residential apartments in general.
2. Transaction dynamics and average prices
Transaction frequency (2-bedroom apartments in SOBHA ONE, only relevant periods):
– Over the last 12 months, more than 100 transactions were recorded, which is an extremely high figure for the primary market.
Average price per square metre dynamics over 2 years (by building), AED/m²:
– Quarterly values range from 22,591 to 22,902 AED/m², which indicates a stable price level over the past 2 years.
Comparison with Ras Al Khor Industrial First (2-bedroom apartments):
– Quarterly values for the district are comparable with the project in 2024 (22,770–22,900 AED/m²), then in 2025 district prices for apartments start to grow into the 24,125–25,590 AED/m² range (data for future periods are ignored; for comparison we use only the current year).
Size of 2-bedroom apartments in the building:
– Main size range: 78–157 m².
– Main concentration by price per m²: the vast majority of 2-bedroom transactions are clustered in the 21,000–24,500 AED/m² corridor, which confirms the average values cited above.
3. Market purchase price level over the last 12 months
– Average price per m² in SOBHA ONE (2-bedroom apartments, last 12 months): 22,757 AED/m² (based on 107 actual DLD transactions).
– District benchmark for the same period is 24,849 AED/m² (Ras Al Khor Industrial First, 2-bedroom apartments). Thus, the building trails the district average by roughly 8% (likely due to the development stage and buyer profile at the time of reporting).
4. Rental level and yield (ROI)
– There are no registered DLD rental contracts for SOBHA ONE over the last 12 months: not a single 2-bedroom apartment in this project has been officially leased.
– At the Ras Al Khor Industrial First district level, the average rent across all residential apartments (not only 2-beds) is 1,025 AED/m²/year over the last 12 months (sample of 52 lease contracts). The actual market range is 680–1,200 AED/m²/year, with the spread driven by the heterogeneity of properties.
– Rental dynamics in the district show stable consolidation in the 980–1,070 AED/m²/year range over the last 6 quarters (2023–2024).
ROI:
– For SOBHA ONE it is not possible to calculate a justified DLD-based ROI due to the absence of rental contracts.
– For the district (all residential apartments combined), ROI_brutto = 1,025 / 24,849 ≈ 4.1% per annum.
– If we factor in initial transaction costs (7–8% of the purchase price), the actual net yield (ROI_net) on a typical apartment purchase in the district is around 3.8% per annum.
– This is below Dubai’s investment benchmark (7–8%), so at the current price and rental levels, purchasing apartments in SOBHA ONE and in the district is oriented more towards capital appreciation rather than rental income.
5. Outlook and conclusions for an investor
– The building and the district both show high sales liquidity, which is positive for resale potential.
– Price per m² dynamics are stable, with no sharp fluctuations or declines; upside potential is more likely tied to construction completion and infrastructure development.
– The gap between price levels in SOBHA ONE and the district (8% in favour of the district) creates room for price growth as the project is completed and moves into the operational phase.
– Current rental yields in the district do not provide the target 7–8% per annum typically expected by investors. To reach this level, the entry price for the project must be significantly below market, or one must wait for rental rates to rise after handover and occupancy.
Fair price range for a target ROI of 7–8% (based on district rents):
– Fair price to achieve a net yield of 7–8% per annum at the current average district rent: 12,800–14,600 AED/m². This is about 40% below the current average achieved transaction price and is only realistic either at early off-plan stages or with a deep discount.
Summary: SOBHA ONE (2-bedroom apartments) is attractive as an investment for capital appreciation, but not for classic buy-to-let at the time of analysis. Liquidity is high, but primarily geared towards resale rather than generating substantial passive income.
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