ROI analysis of apartment in The Spirit: DLD data and real deals

1. Definition of the area and data structure

Actual location: The building The Spirit, as confirmed by the DLD database, is located in the Al Hebiah Fourth area and is part of the Dubai Sports City master project. All further analysis is based precisely on these territorial affiliations. A total of 185 transactions have been recorded in the building, of which 150 were studios. On the rental side, more than 1,500 studio contracts have been registered in the same project, which allows for a representative analysis.

2. Market dynamics and liquidity

Sales
Over the past 4 years, between 15 and 43 studio transactions have been consistently recorded annually in The Spirit, indicating good liquidity that is not typical for “dead” buildings. Over the last 12 months, 20 studio deals have been closed in the building, which is an average-to-good figure for this type of asset. At the Dubai Sports City master-project level, more than 1,500 studio transactions took place over the same period.

Rentals
In the rental market, the number of studio contracts in The Spirit over the last 12 months amounted to 250, and more than 3,500 contracts across the entire master project. This indicates strong demand for this apartment format and a solid market depth.

3. Price dynamics and comparison with the area

Average sale price per m² (studios, last 12 months)
– The Spirit: 14,624 AED/m² (20 transactions).
– Dubai Sports City and Al Hebiah Fourth: 15,511 AED/m² (1,536 transactions).

Thus, transactions in The Spirit were concluded at roughly 5–6% below the average market level for the master project.

The 2020–2025 dynamics for the building show a wide range of average transaction prices per m² for studios — from peak levels of 28,000 AED/m² in 2020 down to 11,000–19,000 AED/m² in 2024–2025, with quarterly fluctuations within 11,000–19,000 AED/m². At the area level, the trend was smoother, with a gradual increase from 7,500–10,500 AED/m² in 2020–2022 to 15,000–19,000 AED/m² in 2024–2025, without such pronounced spikes as in the individual building.

Average annual rental rate per m² (studios, last 12 months)
– The Spirit: 1,326 AED/m² (250 contracts).
– Dubai Sports City: 992 AED/m² (3,555 contracts).

Over the last four quarters, the building has shown growth in average rent per m² — from 989–1,065 AED/m² (2024) to 1,120–1,882 AED/m² in 2025 (future periods are not counted, so it is more accurate to assess based on Q3–Q4 2024 and Q1 2025). At the area level, rates also increased — from 847 to 1,017 AED/m².

The Spirit confidently outperforms the area average in terms of rent (+34%, a difference of 334 AED/m²). This reflects the project’s popularity among tenants and its more premium positioning compared to other buildings in the area.

4. ROI and fair investment ranges

Based on data for the last 12 months:
– Gross yield (rent/price) for a studio in The Spirit: 1,326 / 14,624 ≈ 9.1% per annum — above the traditional target level of 7–8% net yield.
– For Dubai Sports City, the average ROI for studios: 992 / 15,511 ≈ 6.4% per annum.

Adjusting for acquisition costs (around 7–8%: DLD fee, broker, vacancy, minor refurbishment), the estimated net yield is:
– For The Spirit: 9.1% / 1.07–1.08 ≈ 8.4–8.5% per annum (net ROI).
– For the area: 6.4% / 1.07–1.08 ≈ 5.9–6.0% per annum.

Fair price range for a target investor yield of 7–8%:
– For The Spirit: 1,326 / 0.08 ≈ 16,575 AED/m² (at 7% — 18,943 AED/m²).
– For the area: 992 / 0.08 ≈ 12,400 AED/m² (at 7% — 14,170 AED/m²).

The current average price in The Spirit (14,624 AED/m²) lies within this fair range (12,400–18,943 AED/m²), and is closer to the lower boundary. This means that at today’s prices the asset can deliver the target investor yield of 7–8% per annum even after factoring in entry costs.

5. Overall conclusion

The Spirit is an actively traded, liquid building in the below-average price segment in terms of sale price, but it is efficiently rented out with yields significantly above the average for the area and the master project. High transaction volume and depth, stable rental activity and a positive yield trend make the building attractive both for the rental market and for long-term investment. Provided current rental rates are maintained, there is still upside in price for buyers, and there is no need for additional discounts to the current market price to achieve the desired yield level.

The short- and medium-term outlook for The Spirit appears stronger than the average for Dubai Sports City. The share of investors focusing on liquidity and rental performance in this asset will be higher than the area average.