1. Definition of the area and data structure
Actual location: WADI TOWER is part of the Wadi Al Safa 4 area and the City Of Arabia master project. Data for the building is available both in the sales transaction database and in the rental database. In total, 33 transactions for WADI TOWER have been recorded according to DLD data, spread over the years with a clear increase in activity in 2023–2025. For the market analysis, only valid apartment sales and rental contracts were used, matching residential criteria and typical ranges of unit size and value.
2. Activity and liquidity
Over the past two years (2023–2024), the number of transactions both in the building and at the area level has increased noticeably, indicating a substantial revival of liquidity in WADI TOWER and across Wadi Al Safa 4. In just the last 12 months, several sales have taken place in the building and several valid rental contracts have been registered, confirming strong market demand for this asset.
3. Sales price dynamics for the building and the area
Average prices per square metre in WADI TOWER (last 7 quarters):
2023 Q1: 8,916
2023 Q2: 5,306
2023 Q3: 9,044
2023 Q4: 6,672
2024 Q1: 7,215
2024 Q2: 6,943
2024 Q3: 7,664
At the Wadi Al Safa 4 area level, there is a much more pronounced increase in prices per m² in 2024:
2024 Q1: 12,690
2024 Q2: 14,076
2024 Q3: 15,838
2024 Q4: 18,944
The average price per square metre in the area significantly exceeds the level of this building.
Current average price per m² (transactions over the last 12 months):
– WADI TOWER: ~7,087 AED/m²
– Wadi Al Safa 4 area: ~16,528 AED/m²
Thus, WADI TOWER is selling noticeably below the area’s average market level (approximately 2.3 times cheaper).
4. Rental dynamics and rental yield
Average rental rates in WADI TOWER (last 7 quarters):
2024 Q1: 510 AED/m²/year
2024 Q2: 575
2024 Q3: 529
2024 Q4: 554
Very similar figures are obtained when analysing the area, meaning that rental data for the building and for the area largely coincide due to this asset’s dominance in the sample.
Average rental rate over the last 12 months:
– WADI TOWER: ~570 AED/m²/year
– Wadi Al Safa 4: ~570 AED/m²/year
The rental market is active, with a stable flow of new contracts.
5. ROI and the “investment fair value” price range
Brutto ROI for WADI TOWER (and for the area, since rates are identical):
ROI_brutto = 570 / 7,087 ≈ 8.0%
Net ROI (taking into account initial and recurring annual costs of ~7% of entry price):
ROI_net ≈ 8.0% / 1.07 ≈ 7.5%
Fair price range for an investor targeting 7–8% annual return:
– By calculation: from 570/0.08 = 7,125 AED/m² to 570/0.07 = 8,143 AED/m².
The actual average price in the building (~7,087) is at the lower boundary of this range; an additional discount to achieve yields above 8% is practically not required, and the current pricing level is close to fair value for the existing yield. At the area level (16,528 AED/m²), a very substantial discount would be needed to reach a similar yield — Wadi Al Safa 4 as a whole is significantly overpriced relative to this building.
6. Conclusions and outlook
WADI TOWER is a building with very dynamic pricing and rental trends, high market liquidity, and a very substantial discount to the area’s average market level (prices are almost 2.3 times lower, while rents are comparable). For an investor, this building offers a competitive yield, allowing for a 7.5–8% net ROI at current prices. The building is located in a rapidly developing district, with steadily growing sales and rental activity, which supports a favourable outlook for maintaining yields over a 3–5 year horizon. The wider area, by contrast, is characterised by “overheated” prices and effectively modest returns for new buyers.
Related Articles
- ROI analysis of apartment in The Square: DLD data and real deals
- How to sell an unit in Dubai in Ice Hockey – analysis 2026
- ROI analysis of apartment in ACES CHATEAU: DLD data and real deals
- How to sell an apartment in Dubai in Elite Sports Residence 8 – analysis 2026
- ROI analysis of apartment in CORAL RESIDENCE: DLD data and real deals
