ROI analysis of apartment in Viridian: DLD data and real deals

1. Definition of the area and data structure

Actual location: according to DLD, Viridian belongs to the Al Wasl area and the City Walk master project. For the price and rental analysis, this area was used, rather than alternative options.

2. Market volume and dynamics for the building

A total of 52 transactions with 2BR apartments in Viridian have been recorded according to DLD. Real market activity starts from 2022, with transaction peaks in H1 2022 and in Q2 2024.

3. Purchase price dynamics (Viridian 2BR and the area)

The average price per square meter for 2BR apartments in Viridian has varied significantly by period:
– In 2022, the average price per m² was in the range of 20,000–21,500 AED.
– In 2023, there were spikes up to 26,900 AED per m², followed by a correction to 20,000–21,800 AED.
– Over the last four quarters, the average price fluctuated within a wide range: from 18,300 to 33,900 AED per m² (reflecting market volatility and the release of units of different quality).
– Over the last 12 months, the average price per m² for 2BR transactions in Viridian amounted to 21,794 AED.

Across Al Wasl (similarly for 2BR-type apartments), the average price over the last 12 months was 31,084 AED per m² — noticeably higher than in Viridian.

4. Rental market analysis

The DLD database itself shows 0 active rental contracts for 2BR units in Viridian and in City Walk as a whole. At the Al Wasl area level, there is a sufficient volume of valid rental contracts.

The average annual rental rate for apartments in Al Wasl over the last 12 months was 1,274 AED/m² across all residential rental properties. Historical dynamics (arithmetic average by quarter) show a confident increase in rental rates starting from 2023: from 750–850 AED/m² (2020–2022) to the current 1,100–1,300+ AED/m², confirming demand and the momentum of the upper mid segment.

For Viridian (as well as for City Walk as a whole), there are no confirmed DLD rental contracts — this scenario is common for new builds and boutique projects with a low number of leased units or with alternative rental formats.

5. Yield (ROI) and fair price

At the Al Wasl area level:
– Price per m² (sale transactions) over the last 12 months: 31,084 AED.
– Average rent per m² (over the last 12 months): 1,274 AED.
– Gross yield (ROI) for the area is 4.1%.

Taking into account initial transactional and registration costs (around 7%), the “net” yield will be approximately 3.8–3.9% per annum (ROI_net = 4.1% / 1.07).

For Viridian, ROI calculation is not possible, as there is no valid rental data within this building.

The fair price range per m² for an investor targeting a 7–8% annual yield in Al Wasl is calculated at 15,930–18,200 AED per m². This is significantly below the current market price — to reach such a yield level, a substantial discount to average sale prices is required. This gap is explained by the high capital values of properties in City Walk and Al Wasl against a more moderate rental growth.

6. Outlook and key conclusions

Viridian (2BR) trades at a significant discount to the area average (21,800 versus 31,000 AED per m²), which makes it attractive compared with the benchmark in terms of acquisition cost. In terms of rental potential, the actual yield in this segment will be below 4% per annum, unless the specifics of short-term rentals are taken into account (there is no DLD data on this). Liquidity for transactions in both the building and the area remains fairly high, but yields above 7–8% per annum can only be expected with a substantial discount to market value.

Al Wasl (City Walk) retains its status as a premium segment with stable demand, but the gap between current purchase and rental prices is large — for an investor focused on 7–8% annual returns, there is no optimal entry point at current prices, except for strategies like “buy in Viridian below market.” The capital value growth of the building is striking; however, for an investment strategy centered on rental income, one should be as cautious as possible: the price appreciation potential is almost realized, rents are rising but still lag behind the pace of capital value growth.