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1. Definition of the area and data structure
Actual location: According to DLD, the buildings Socio Tower 1 and Socio Tower 2 are part of the Socio project, which is located in the Hadaeq Sheikh Mohammed Bin Rashid area and forms part of the Dubai Hills Estate master development.
The DLD database contains a sufficient volume of data: 650 registered apartment sale transactions (resales and primary market, the overwhelming majority in 2023–2024). There is also a substantial rental dataset (352 active contracts), including studios (0BR).
2. Liquidity of the project and the area
Over the past 1–2 years, the number of transactions in the Socio project has increased significantly (especially from Q4 2023). This appears to be linked to handover and the commissioning wave: in Q4 2023 alone, 203 transactions were registered, and in Q1 and Q2 2024 there were 279 and 32 transactions respectively. The transaction volume indicates good liquidity and strong market activity in the building after completion.
In the Hadaeq Sheikh Mohammed Bin Rashid area, apartment sales also show a stable flow, with a gradual increase in the average price per m² over the last 3–4 years. The share of studios in the area is small, but the segment is present.
Rental activity in Socio is confirmed by the number of concluded contracts: more than 350, including at least 2 current studio contracts over the last 12 months. The wider area also demonstrates fairly high rental activity.
3. Purchase price dynamics
Quarterly dynamics of the average price per m² in the Socio building (all apartments, size range 20–100 m²):
– Until the end of 2022, the price per m² remained at 14,600–15,000 AED/m².
– In Q4 2023 there was a jump to 21,000+ AED/m².
– Over the last 12 months (July 2023 – July 2024), the average price per m² according to DLD increased to 24,600 AED/m².
– In the latest quarters of 2024, figures reach 24,400–25,200 AED/m².
In the Hadaeq Sheikh Mohammed Bin Rashid area, quarterly dynamics are also upward, but the price level is slightly lower:
– In 2022 – 15,700–19,400 AED/m²,
– In 2023–2024 growth continued, and the average figure over the last 12 months amounted to 23,270 AED/m².
Thus, the Socio premium over the area’s average market level is about 5–6% as of the last 12 months.
4. Structure and level of rental rates
The average confirmed rental rate per m² for studios in Socio according to DLD over the last 12 months is 1,818 AED/m² per year (based on contracts with valid area and annual rent).
In the Hadaeq Sheikh Mohammed Bin Rashid area, the average studio rental rate is somewhat lower — 1,528 AED/m² per year.
Thus, in terms of rental as well, Socio outperforms the area average (a difference of about 19%).
Yearly/quarterly dynamics also confirm growth: more recent deals show higher rates as the building is handed over and filled with tenants.
5. Indicative yield and “fair price”
ROI calculation based on the last 12 months:
– Gross yield in Socio (for studios): 1,818 / 24,597 ≈ 7.4% per annum.
– For the area: 1,528 / 23,273 ≈ 6.6% per annum.
If we include initial acquisition costs (DLD fee, agency commission, registration — in total about 7–8%), the net yield (net ROI) for an investor will be 6.8–6.9% for Socio and about 6.1–6.2% for the area.
Indicative “fair price range for an investor” when targeting a 7–8% annual yield:
– For Socio: with the current rent of 1,818 AED/m², the fair price is in the range from 22,700 (1,818/0.08) to 25,970 (1,818/0.07) AED/m². The current Socio market level (24,597 AED/m²) lies roughly in the middle of this range, meaning an investor can obtain on average 7.4% gross, or about 6.9% net over a 1‑year horizon.
– For the area: the analogous range (1,528/0.08 … 1,528/0.07) is from 19,100 to 21,800 AED/m², whereas the average transaction in the area is 23,273 AED/m². In other words, the area has already moved slightly above the “fair range” for a 7–8% ROI. This explains why premium projects like Socio enjoy strong tenant demand even at higher prices.
6. Brief conclusions for the investor
– Socio stands out within the area both in terms of final market price and average rental rate.
– The volume of sales and leases is high — a strong indicator of liquidity and demand for the building among investors and tenants.
– After handover, the price level increased significantly; the premium to the area is justified both by the project concept and by demand.
– The current gross ROI on studio transactions is 7.4%, with net ROI after expenses at about 6.9% (based on DLD data for the last 12 months).
– To achieve a net yield of 7–8% per annum, it is not advisable to buy in Socio significantly above current market levels; the fair price currently coincides with the actual market price.
The Socio studio market suits an income-focused investor either as a highly liquid rental asset or for resale amid strong demand. Across the area as a whole, yields are already closer to 6%, while premium buildings require a payback level of 6.5–7% net, which is confirmed by recent statistics.
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