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 unambiguously identified in the DLD database and belongs to the Al Hebiah Fourth area, within the Dubai Sports City master project. All price and rental analysis is carried out strictly for this building, while Al Hebiah Fourth indicators are used for comparative analysis.

Data volume: The DLD database records 199 sale transactions for THE BRIDGE, broken down by year, as well as a large number of rental contracts — for studios (0-bedroom units) alone there are 339 contracts (out of 1,349 for the entire project), which indicates high liquidity among both buyers and tenants.

2. Transaction dynamics and structure for the building

Transaction frequency and liquidity: From 2020 to 2025 the building has consistently recorded a significant number of transactions each year (from 20 to 44 per year). This volume of activity points to strong demand on the resale market.

Average price per m² dynamics:
– After the dip in 2020–2021 (average values fluctuating between 6,000 and 9,000 AED/m²), a steady recovery and growth has been observed since 2022.
– In 2023 the average price per m² for studios in THE BRIDGE ranged from 6,600 to 12,000 AED/m² by quarter.
– Over the last 12 months (April 2023 – April 2024) the average purchase price of a studio in THE BRIDGE was about 10,800 AED/m².
– For comparison, the average price for studios across the entire Al Hebiah Fourth area over the same period is significantly higher — approximately 13,900 AED/m². Thus, THE BRIDGE is noticeably cheaper than the area average (by ~22%).

3. Rental dynamics and rate distribution

Volume and spread: In recent years, several dozen studio rental contracts have been registered annually for this building, which indicates stable tenant demand.

Average rental rate:
– Over the last 12 months the average rental rate for a studio in THE BRIDGE was 932 AED/m² per year.
– The average rental rate for studios across Al Hebiah Fourth is 992 AED/m² per year, i.e. slightly higher than in this building (~6% difference).
– Historically, from 2020 to 2023 there has been a steady increase in rental rates in THE BRIDGE: from 550–600 AED/m² in 2020–2021 to the current range of 850–1,080 AED/m² per year, which is in line with the broader area trend.

4. Yield (ROI) comparison and fair price range

Gross yield:
– The current average purchase price for a studio in THE BRIDGE is 10,800 AED/m²; rent is 932 AED/m²/year.
– Roughly calculated gross ROI: 932 / 10,800 ≈ 8.6% per annum, which is significantly above the psychologically comfortable range for an investor (7–8%).
– For the area, the comparable figure is lower: 992 / 13,900 ≈ 7.1%.

Adjustment for costs:
– Taking into account typical transactional costs on purchase (7–8% of the price), the net yield (ROI_net) for THE BRIDGE is estimated at about 8.6 / 1.07 ≈ 8.0% per annum, which even on an adjusted basis is at the upper end of the target range for investors.
– For the area, after adjustment, ROI_net will be close to 6.6–6.7%.

Investment fair price range:
– To achieve a 7–8% annual yield in THE BRIDGE, an investor can buy within the following price range: 932 / 0.08 ≈ 11,650 AED/m² (purchase price delivering 8% gross ROI); 932 / 0.07 ≈ 13,315 AED/m² (for a target 7% per annum).
– At the current average price of 10,800 AED/m², the building offers a yield premium versus the market: the price allows returns to remain above the average area benchmarks.
– If we focus on a market yield of 7–7.5%, the premium of THE BRIDGE as a buy-to-let asset is evident based on actual DLD data.

5. Overall conclusions for the investor

THE BRIDGE is a liquid building in Dubai Sports City (Al Hebiah Fourth) with demonstrably strong and stable demand from both tenants and studio buyers. In terms of purchase price it is 22% cheaper than the area average, while rental rates are almost identical to the area averages. This ensures a superior position for the asset in terms of yield. At current studio prices, returns significantly exceed the 8% per annum psychological threshold even after factoring in all entry costs. The 3–5 year outlook for an investor appears highly favorable (assuming demand and the current market structure are maintained), although one should keep in mind the general trend of narrowing arbitrage between purchase prices and rents as the market recovers.