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1. Definition of the area and data structure
Actual location: the residential building The 50 (The 50) is located in Wadi Al Safa 3, within the Majan master development. This is confirmed by DLD data: all transactions for this building are unequivocally attributed to this area.
Data structure: for The 50 there are 14 registered sale transactions and 162 rental contracts (all-time), so the statistics for the building and the area are sufficiently complete for a comprehensive analysis.
2. Liquidity: transaction and rental volumes
– Sale transactions for The 50 appear only in 2025, starting from Q2. The volume is 14 deals, which means the building is new and has only just entered the market.
– In Wadi Al Safa 3, apartment activity is high: over the last year alone there were 5,707 transactions.
– For The 50, 21 new rental contracts were registered over the past 12 months, which is comparable to the liquidity of other buildings of a similar scale in the area.
– Overall, Wadi Al Safa 3 recorded more than 3,400 residential lease contracts over the year.
Conclusion: demand for both purchase and rent is high, the building is liquid and integrated into a rapidly developing residential cluster.
3. Purchase price dynamics per m² (3 years)
The 50:
— Sales are recorded only in 2025.
— Average price per m² by quarter: 12,257 AED (Q2 2025), 11,706 AED (Q3 2025), 12,073 AED (Q4 2025).
— 12‑month average: 12,047 AED/m² (14 transactions).
Wadi Al Safa 3:
— The area has gone through a rapid growth phase in 2022–2025.
— Price growth: in 2022–2024 the range was 9,300–14,200 AED/m², and at the beginning of 2025 (last 12 months) the average reached 15,226 AED/m² (5,707 transactions).
— Quarterly dynamics indicate further growth: Q1 2025 — 15,240 AED/m², followed by stabilization in the 14,000–16,000 AED/m² range.
Comparison: The 50 is noticeably cheaper than the area average — 20–25% below the “per square metre” price in Wadi Al Safa 3 over the last year.
4. Rental rates and dynamics
The 50:
— The average effective rent in the building is rising: 505–670 AED/m²/year in 2024–2025.
— The 12‑month average is 628 AED/m²/year (21 contracts).
Wadi Al Safa 3:
— The average rental rate in the area over the last 12 months is 794 AED/m²/year (around 3,441 contracts).
— Typically, the rent range for new contracts has been 750–910 AED/m²/year (2024–2025), with a trend of further slight growth.
Conclusion: The 50 rents out slightly below the area market level, but there is stable demand, including in terms of the number of new contracts.
5. ROI (gross/net) and the “fair purchase range”
— Based on actual values for the last 12 months:
– ROI_brutto for The 50 = 628 / 12,047 ≈ 5.2% per annum.
– For Wadi Al Safa 3 ~ 794 / 15,226 ≈ 5.2% per annum.
— Adjusting for transaction costs (around 7–8%): ROI_net ≈ 4.8–4.9% per annum for both the building and the area.
— “Fair price range” for a buy-to-let investor targeting 7–8% annual yield:
– For The 50: 628 / 0.08 = 7,850 AED/m² (minimum), 628 / 0.07 = 8,975 AED/m² (upper bound of the range at 7%).
– The share of contracts and demand indicate that these levels are far below current market prices, and achieving 7–8% per annum would require a substantial discount.
– For the area: 794 / 0.08 = 9,930 AED/m² (minimum), 794 / 0.07 = 11,340 AED/m² (max).
– Market prices are above these “investment benchmarks” both for the building and for the area.
6. Key takeaways for an investor
– Liquidity of The 50 is high both in sales and rentals.
– The dynamics show strong growth of the area’s market and a stable premium of the area average over the building (The 50 is 20–25% cheaper both in sale and in rent).
– ROI for buy-to-let investments today is ~5.2% (net around 4.8–4.9%), which is below the desired 7–8%; to reach 7–8% yield, the purchase level for the building would need to be 7,800–8,900 AED/m², i.e. 33–35% below the market.
– If the only goal is yield, the asset appears overpriced relative to the target threshold for investors; if the focus is on future liquidity and capital appreciation, Wadi Al Safa 3 is a growth cluster where unit prices continue to strengthen and rental rates are also trending upwards.
– For investments in The 50, it makes sense to focus on capital appreciation rather than purely on income yield.
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