ROI analysis of apartment in THE BRIDGE: DLD data and real deals

1. Definition of the area and data structure

Actual location: THE BRIDGE building is confirmed in open DLD data as located in Al Hebiah Fourth, within the Dubai Sports City master project. The analysis is conducted strictly within these administrative units.

For two-bedroom (2BR) apartments in THE BRIDGE there is a solid volume of sale and lease transactions, which allows us to build full-scale analytics specifically for this building and to compare its performance with the master project level (Dubai Sports City) and the wider area (Al Hebiah Fourth).

2. Liquidity, sales and rental volume

In THE BRIDGE, 2-bedroom apartments have been consistently purchased over the past 5 years: around 40 transactions have been identified (filtered by 2BR, at least 1–5 deals per quarter have been recorded in almost every quarter since 2020). This indicates good liquidity (there is both supply and demand). At the same time, in the DLD database itself, leasing activity in THE BRIDGE is among the highest in the area: over the last 12 months alone there have been more than 1,000 rental contracts in the building in total (all unit types).

3. Price and rental dynamics over 3–5 years

Average purchase price per m² for 2-bedroom apartments in THE BRIDGE (current data):
– Over the last 12 months — around 8,240 AED/m².
– For comparison: the average level for the Dubai Sports City master project and Al Hebiah Fourth area — 10,924 AED/m².

Price dynamics for THE BRIDGE over the past 3–5 years show significant volatility with individual outliers (there are occasional transactions at abnormally low or high rates that distort the averages). Nevertheless, most sales over the last 2–3 years have fallen in the 6,400–12,500 AED/m² range, which is noticeably cheaper than the master project on average. This indicates that THE BRIDGE is trading below the Dubai Sports City level (a discount of 20% or more).

Rent per m² (annual rate, all apartment types in THE BRIDGE):
– Over the last 12 months: average rent of 933 AED/m²/year.
– For the Dubai Sports City master project — 842 AED/m²/year.
– For Al Hebiah Fourth — 909 AED/m²/year.

Thus, the rental rate in THE BRIDGE is slightly above the area average (by about +3%), but remains within the general range for the budget and mid-priced apartment segment in Sports City.

Rental dynamics in THE BRIDGE show confident growth: 2–3 years ago levels were 550–700 AED/m²/year, while now they consistently exceed 850–950 AED/m²/year, confirming strong demand in the rental market.

4. Comparative performance: building vs area

– THE BRIDGE:
– Average purchase price over the last 12 months — 8,240 AED/m².
– Average rent — 933 AED/m²/year.
– Dubai Sports City and Al Hebiah Fourth:
– Average purchase price — 10,924 AED/m².
– Average rent — 842–909 AED/m²/year.

The rental premium in THE BRIDGE offsets its lower purchase price, which significantly increases the projected yield compared to other projects in the area.

5. Yield (ROI) calculation based on DLD data

Gross yield (calculation based on data for the last 12 months, building level):
– ROI_gross (THE BRIDGE) = 933 / 8,240 ≈ 11.3% per annum.
– ROI_gross for the area ≈ 909 / 10,924 ≈ 8.3% per annum.

Taking into account all one-off initial costs (around 7–8% of the price, including DLD fee, broker, vacancy and discounting):
– ROI_net (THE BRIDGE) ≈ 11.3% / 1.08 ≈ 10.5% per annum.
– ROI_net for the area ≈ 8.3% / 1.08 ≈ 7.7% per annum.

6. Fair price range as a benchmark for investors

If an investor aims for exactly 7–8% net yield at current rental levels, then at the average rental rate in THE BRIDGE (933 AED/m²) the “fair” price range for an investor is:
– For 7% per annum: 933 / 0.07 ≈ 13,330 AED/m².
– For 8% per annum: 933 / 0.08 ≈ 11,660 AED/m².

The current average transaction price is 8,240 AED/m² (a substantial discount to the “fair investment price” based on current average rents). Even the average market price for the area (10,924 AED/m²) is still in a range where an investor can expect almost 7–8% net yield or higher.

7. Overall conclusion

THE BRIDGE is a noticeably undervalued income-generating asset compared with the Dubai Sports City master project and the wider area, which is confirmed by actual DLD data for both sales and rentals. The building is liquid in both the sales and rental markets, with stable transaction pace and volume.

Yields are significantly above the target benchmarks of most large investors (7–8% net per annum), both for the building itself and for the area. This creates preconditions for potential price movement towards average market levels over a 1–3 year horizon, provided demand remains at its current level.

Recommendation: THE BRIDGE (2BR) is an attractive investment asset with an estimated ROI of over 10% net. Buyers can target a price range up to 11,500 AED/m² to maintain high rental income. For sellers, it is reasonable to expect strong demand if prices remain competitive relative to the area’s average market level.