ROI analysis of apartment in ZaZEN GARDENS: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to DLD, the ZaZEN GARDENS building is located in the Jabal Ali First area, within the Al Furjan master project.
Number of transactions: with a filter for 2-bedroom apartments (2BR) in this building, 131 transactions have been registered.
Only verified filters by property type and number of bedrooms were used in this analysis.

2. Sales dynamics of 2BR units in ZaZEN GARDENS and in Jabal Ali First

From 2023 to date, the highest sales activity for 2BR units in the building was recorded in Q2 2023. Quarter by quarter, the average price per square metre for 2BR in ZaZEN GARDENS ranged from 7,311 to 12,895 AED/m², while over the last 12 months the average level stands at 11,101 AED/m².
For comparison: in Jabal Ali First, the average sales price of 2BR apartments over the last 12 months is significantly higher — 16,922 AED/m², with strong quarterly growth also observed in 2023–2024.

This indicates that ZaZEN GARDENS is trading below the area average for 2-bedroom apartments — the discount is about 34% versus the average price per square metre.

3. Rental market analysis

According to the DLD database, there are no rental contracts recorded specifically for ZaZEN GARDENS (and similarly for the Al Furjan master project). Therefore, it is impossible to determine the market rental rate for 2BR apartments in this particular building or even within the master project based on DLD as the primary source.
However, for Jabal Ali First as a whole, the sample size is large: across all residential properties there are more than 148,000 rental positions. Over the last 12 months, the average annual rent for all residential contracts (any size and type) in the area is 873 AED/m²/year. The dynamics show a steady increase in rates: in 2023 the averages were closer to 700 AED/m²/year, rising to 780–800 AED/m²/year at the beginning of 2024.

Important: the obtained area-wide rate is averaged across all residential types (not only 2BR) and may not reflect the specifics of apartments of a similar class and quality to ZaZEN GARDENS.

4. ROI calculation and fair price range

It is not possible to calculate the gross yield (ROI) at the building level for ZaZEN GARDENS due to the lack of DLD rental data. At the area level, based on averaged figures:

– Average transaction price over the last 12 months: 16,922 AED/m².
– Average rent over the last 12 months: 873 AED/m²/year.
– Gross yield (ROI) for the area: approximately 5.2% per annum (873 / 16,922).

An adjustment to net yield taking into account entry costs (around 7–8% of the purchase price) would reduce this figure to about 4.8–4.9% per annum.

An investment-fair purchase price range targeting a 7–8% rental ROI looks as follows: 873/0.08 = 10,913 AED/m² to 873/0.07 = 12,471 AED/m². In other words, the actual average price in the area is significantly above this range, and to achieve 7–8% per annum the market would need to correct downwards, or an asset with a better yield must be found.

5. Liquidity and outlook

Based on transactions in ZaZEN GARDENS, liquidity is high — sales volumes for 2BR units were substantial, especially in Q2 2023.
The Jabal Ali First area also shows high turnover in both rentals and sales, which characterises the local market as active and in demand.
However, as of now, the comparable rental income level appears lower than typical investor expectations (5.2% gross versus the desired 7–8%). Without access to current rental rates specifically for ZaZEN GARDENS, its ROI cannot be reliably assessed.

6. Final conclusions for the investor

– In ZaZEN GARDENS, 2BR apartments are selling at prices significantly below the area average, which may indicate investment potential in case of price growth or reflect the specifics of the building (construction stage, quality, absence of tenants).
– DLD rental data for this building is completely absent; yield assessment is only possible at the area level, where ROI is currently noticeably below what a private investor typically expects for passive income.
– Recommending ZaZEN GARDENS to an investor is possible only with a clear disclaimer about the risks associated with the lack of publicly confirmed rental rates (rental liquidity, time on market).
– Transaction volume is high — judging by DLD history, there is no apparent risk of low resale liquidity.