ROI analysis of apartment in ZENITH TOWER A2: DLD data and real deals

1. Definition of the area and data structure

Actual location: according to DLD, ZENITH TOWER A2 is assigned to the Al Hebiah Fourth area and the Dubai Sports City master project. A database query shows that there is a representative sales history for 1-bedroom apartments (1BR) in this building — 37 transactions have been recorded since 2020. For 1BR rentals in the building itself and in the master project, no active contracts have been registered over the past 12 months; rental analysis is only possible at the Al Hebiah Fourth area level as averaged indicators.

2. Liquidity of the property and the area

Over the past 12 months, there have been 3 transactions for 1BR units in ZENITH TOWER A2; at the area level, more than 1,380 1BR transactions have been registered over the same period, which indicates high liquidity of the segment overall. In terms of rentals, the total volume across the area exceeds 8,700 residential contracts per year, pointing to stable demand.

3. Price and rental dynamics over 3–5 years

For 1BR sales in ZENITH TOWER A2:
– 2020: average price per m² — from 3,623 to 5,096 AED/m².
– 2021: range — 5,003–5,826 AED/m².
– 2022: prices vary from 5,435 to 8,104 AED/m².
– 2023: growth to 6,417–7,087 AED/m².
– 2024 (last 12 months): sales are closing at an average of 9,446 AED/m² (3 transactions over the year).

For comparison, in the area (Al Hebiah Fourth), the average price for 1BR units over the last 12 months is higher: 12,056 AED/m² across 1,382 transactions — noticeably above the building’s levels. The area is showing rapid growth — from 6,705–8,107 AED/m² on average in 2023 to 9,474–11,394 AED/m² in 2024.

Rental dynamics for 1BR units cannot be analysed (only isolated or no transactions in this segment are recorded for both the building and the area). However, if we take all residential space in the area into account, the average annual rent stands at 909 AED/m² over the last 12 months, up from 475–617 AED/m² (2021–2023) to 749–818 AED/m² by the end of 2024.

4. Comparison of price and rent levels: building vs area

The price per m² in ZENITH TOWER A2 over the last 12 months is below the area benchmark for 1BR units (9,446 vs 12,056 AED/m², a gap of almost 27%). This may be a factor of attractiveness for buyers targeting capital growth, given that the area as a whole is on a clear upward trend.

The rental stream for the building is not directly confirmed by DLD, so we have to rely only on the area’s averaged figures across all residential space: 909 AED/m²/year. This approach is cautious, as a classic ROI benchmark for a specific 1BR unit is not feasible.

5. ROI and “fair price” for an investor

ROI calculation for this building is not possible based on DLD statistics, as there have been no registered 1BR rental contracts over the last 12 months (similarly for the master project). Calculations can only be made using aggregate data for the entire residential stock of the area:

Brutto ROI for the area: 909 / 12,056 ≈ 7.5% per annum (where 909 AED/m² is rent, and 12,056 AED/m² is the market purchase price).

Taking into account entry costs (around 7%), net ROI is estimated at roughly 7.0% per annum for the area (909 / 12,900).

For ZENITH TOWER A2, a “theoretical” comparison: if we use the area’s rent_psm (909) and the building’s average price (9,446), brutto ROI is virtually higher — about 9.6%. But again, this is not backed by actual rental transactions in the building, so this level is more theoretical.

Fair price range for a target ROI of 7–8%: based on the area’s rent, this is 11,362–12,986 AED/m². The building’s current market price (9,446 AED/m²) is significantly below this range — this is either a sign of the building being undervalued, or a reflection of asset specifics (weak rental demand for 1BR units in this building).

6. Prospects and limitations

Price dynamics for 1BR units in Al Hebiah Fourth are confidently upward, with a substantial inflow of transactions and high liquidity. Sales in the building itself are taking place at prices noticeably below the area average. However, the weak representation of 1BR units in the rental market (no contracts recorded in DLD over the year) makes it impossible to calculate the actual yield from purchasing a 1BR specifically in ZENITH TOWER A2. For an investor, the main upside in this building is a bet on further capital appreciation, rather than on guaranteed rental income.

7. Brief conclusion

ZENITH TOWER A2 shows lower 1BR price levels compared with the area, which historically can be viewed as an entry point for future growth. Actual rental cash flow for 1BR units is not confirmed; the 7–7.5% per annum area benchmark can serve only as an approximate guide. From an investment perspective, the key risk is the absence of proven rental yield — additional rental market analysis and demand verification are recommended before proceeding with a transaction.