ROI analysis of apartment in SUNSHINE RESIDENCE: DLD data and real deals

1. Area definition and data structure

Actual location:
The correct DLD area for SUNSHINE RESIDENCE is Nadd Hessa. The master project is Silicon Oasis. Transaction data is verified by the building name, which allows us to run analysis both at the building level and at the Nadd Hessa area level.

Volume of relevant data:
There are 73 registered sale transactions for the building in the DLD. There is also a solid body of rental contracts (181 leases recorded over recent years for this project). This provides a robust basis for statistics.

2. Market activity and liquidity

The frequency of transactions indicates a regular level of liquidity:

  • Since 2020, deals have been closing every year (from 3 to 27 per year), with a spike in activity in 2025 (the data most likely reflects off-plan registrations or a one-off handover of a large share of units by the developer).
  • There is clear evidence of strong demand for units in this building — SUNSHINE RESIDENCE cannot be described as “stagnant” or illiquid.

On the rental side, the building is also consistently in demand — the number of contracts and their distribution over time indicate sufficient turnover and strong tenant interest.

3. Sales price dynamics — building and area

Dynamics for SUNSHINE RESIDENCE (all apartments combined; aggregation is used due to the limited volume of pure 1BR data):

  • In the last quarters of 2025, the average price fluctuated in the range of 9,600–16,400 AED/m² (excluding outliers).
  • Over the last 12 months, the building shows an average sale price of 9,932 AED/m². This is below the current average market level for Nadd Hessa.

For Nadd Hessa (analysis under similar size filters and with outliers removed):

  • Long-term trend for 2020–2024: average price growth from ~7,000 to 12,000–15,700 AED/m² and even higher in the most recent quarters.
  • The average price per m² over the last 12 months for the area is 14,749 AED/m², which is noticeably higher than for SUNSHINE RESIDENCE. It is possible that SUNSHINE is positioned slightly more economically, or that transactions are dominated by internal deals (“between related parties”) or have specific developer-related terms.

4. Rental rates — building and area

Long-term dynamics for the building:

  • On average, rents per m² in the building have been rising over the past 1–2 years and in Q4 2024 reached 509–677 AED/m²/year.
  • The arithmetic average rental rate for active contracts over the last 12 months is 678 AED/m²/year.

For Nadd Hessa:

  • Rental rates per m² in the area are slightly higher — 738 AED/m²/year over the last 12 months.
  • The area shows stable growth: from 480–500 AED/m²/year in 2021 to 700–750+ AED/m²/year in the most recent quarters.

5. Comparative analysis and returns (ROI)

Comparison of price levels:

  • SUNSHINE RESIDENCE sells on average 33% below the area level over the last 12 months.
  • Rental rates in the building are also slightly below the area average (by about 8%).

Rough yield (ROI) calculation based on building averages over the last 12 months:

  • ROI_brutto for SUNSHINE RESIDENCE: 678 / 9,932 ≈ 6.8% per annum (before transaction costs).
  • ROI_brutto for Nadd Hessa: 738 / 14,749 ≈ 5.0% per annum.

Taking into account standard entry costs (around 7% of the price), the final indicative net yield after all expenses (ROI_net) is:

  • For the building ≈ 6.8% / 1.07 ≈ 6.36% per annum.
  • For the area ≈ 5.0% / 1.07 ≈ 4.7% per annum.

The range of investment-fair prices for a target yield of 7–8% per annum is defined as follows:

  • For the building: 678 / 0.08 = 8,475 AED/m² (price for an 8% yield), 678 / 0.07 = 9,686 AED/m² (for a 7% yield).
  • The actual average sale price is 9,932 AED/m² (slightly above the 8% yield range, at the upper boundary of the 7% range).
  • For a new investor, current deals are slightly overpriced relative to an 8% yield, but are closer to a 7% yield.
  • For the area, the gap is even wider: 738 / 0.08 = 9,225 AED/m², 738 / 0.07 = 10,543 AED/m² versus an average transaction price of 14,749 AED/m² — which means that across the area as a whole, investments are often made either at a lower yield or with an expectation of further capital appreciation.

6. Summary and conclusions

SUNSHINE RESIDENCE is a liquid, in-demand building in Nadd Hessa (Silicon Oasis). In terms of both rental and sales activity, it is among the actively utilized projects in the area. The current price level is at the boundary of the fair range for an investor targeting a 7% annual yield. The building trades at a discount to the area average (both in price and rent), which makes it attractive for buyers focused on maximizing income.

The area as a whole shows confident price growth, but at current market prices yields in most cases fall below 7%. When choosing between buying in this building and buying across the area in general, SUNSHINE RESIDENCE looks more attractive for an investor focused on passive income rather than speculative capital gains.

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