1. Definition of the area and data structure
Actual location: According to DLD, The Residences building is located in the Al Thanyah Fifth area. In the DLD_transactions database, 135 deals were found for this building, of which only 2 relate to 1-bedroom apartments. In DLD_rent_contracts there are 232 rental contracts for the building across all apartment types, but there have been no new contracts for 1-bedroom units over the past 12 months. Therefore, for the rental arithmetic for the building we use the aggregated value for all apartments in The Residences and compare it with the Al Thanyah Fifth area.
2. Liquidity and volume of sales/rentals
Over the past 12 months, 8 transactions have been recorded for the entire building (The Residences) and 3,836 transactions for comparable apartments in the Al Thanyah Fifth area, which indicates moderate liquidity of the building relative to the scale of the district. The rental database also shows regular signing of new contracts — 14 contracts for the building over the year, and 7,720 for the area.
3. Dynamics of average price per m² (sales)
Quarterly dynamics for The Residences are limited for 1-bedroom apartments (only 2 historical transactions are available: 2021Q4 — 16,100 AED/m², 2024Q3 — 14,400 AED/m²), so it is not possible to build an objective trend for this unit type in the building. In aggregate for the entire building, the average price per m² over the last 12 months reached 20,800 AED/m² (all apartments), which is noticeably higher than in the area (Al Thanyah Fifth) — 19,600 AED/m² over the same period.
For Al Thanyah Fifth, there is a pronounced increase in the average price over 3–4 years: from 9,100–10,000 AED/m² in 2021 to peaks of 17,900–19,200 AED/m² in recent quarters. In The Residences, the average price dynamics for 1-bedroom units over the last 3 years do not show growth — both values (16,100 and 14,400) are below the current 12‑month building average (20,800), which may indicate that individual units were sold below the average, or simply reflect the specifics of a very small number of transactions.
4. Rental dynamics and level (annual rate per m²)
Over the past 12 months, the average annual rental rate in The Residences has been 1,465 AED/m² (for all apartments, due to the absence of new data specifically for 1-bedroom units). This is significantly higher than the average for Al Thanyah Fifth — 1,100 AED/m² per year, which points to the premium positioning or high demand for this project.
The long-term rental dynamics for the building show a marked increase: 2–3 years ago annual rates were at 800–1,000 AED/m², while by 2024 they stabilized in the 1,200–1,580 AED/m² range per year, confirming the strengthening trend in the rental market.
5. Comparison of price and rental levels: building vs area
The average purchase price per m² in The Residences over 12 months is 20,800 AED/m², which is about 6% higher than in the area (19,600 AED/m²). The average annual rent in the building is 33% higher than in the area (1,465 vs 1,100 AED/m² per year). This indicates higher investment potential, but also a higher “entry price” for the buyer.
6. ROI (gross and net yield), fair price range
Gross yield for the building (ratio of rent to price, calculated for all apartments over the last 12 months): ROI_brutto_home ≈ 1,465 / 20,800 ≈ 7.0% per annum.
For the area, the corresponding figure is: ROI_brutto_area ≈ 1,100 / 19,600 ≈ 5.6% per annum.
After adjusting for transactional and administrative costs (7–8% of the purchase price), the estimated net yield (ROI_net) for The Residences will be 6.5–6.7% per annum, which is at the upper end of the range for completed properties in this location.
The fair price range for an investor targeting 7–8% per annum (based on the average rental level in the building) is from 18,300 to 20,900 AED/m². The current average sale price in the building (20,800 AED/m²) is at the upper boundary of the “investment‑fair” range: one should not expect many real transactions above 21,000 AED/m² without a strong further increase in rents.
7. Investor conclusions
The Residences is a project with high liquidity and stable demand. Over the last 3–5 years rental rates have increased by 40–50%, and the current average sale price exceeds the area average by 6%. The building’s gross yield (7%) is higher than the average for Al Thanyah Fifth, while the net yield at market purchase prices is at the borderline of “fair value”. If purchased with a discount or at the building’s average level (up to 20,000 AED/m²), long-term returns for an investor will be attractive even after factoring in transaction costs. The rental market in this building is strong, which minimizes the risk of prolonged vacancy.
A 1BR in The Residences is a strong option for those counting on sustained liquidity and relatively fast leasing, but to achieve a 7.5–8% annual yield it makes sense to look for units with a discount to the current building average or to “catch” short-term spikes in rental demand.
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