1. Definition of the area and data structure
Actual location:
ZUBAIDA RESIDENCY is located in Wadi Al Safa 3, within the Majan master development. This is confirmed by the presence of direct transactions in the DLD database for this specific building.
Data structure and volume:
For 1-bedroom apartments (1BR) in this building, 32 sales were recorded between February 2023 and November 2024. For 1-bedroom rental contracts in this building itself, no leases have been registered over the past 12 months; however, it is possible to analyse the performance of this unit type at the Wadi Al Safa 3 area level.
2. Sales frequency and dynamics, price analysis
Transaction activity and dynamics for ZUBAIDA RESIDENCY 1BR:
– 2023: the main volume of sales, especially in Q1 and Q3, with average prices from AED 6,400 to 8,800 per m².
– Late 2023 and 2024: growth in the average price per m² — up to ~AED 10,300–10,500 per m².
– Over the last 12 months, the sales sample in this specific building is insufficient for averaging (effectively zero).
Comparison with the area/Majan (1-bedroom units):
– Over the last 12 months, the average price per m² in the area (Majan master project, Wadi Al Safa 3, 1-bedroom units) is AED 13,515 per m².
– Overall dynamics for 2022–2024 show rapid growth: from AED 7,000–8,800 per m² at the beginning of 2023 to over AED 13,000 per m² by 2024.
Important feature: across the area, the transaction volume is very high, which ensures strong liquidity, but the wide price range (from AED 5,000 to 25,000 per m²) requires taking into account outliers and the concentration of deals around the mid-market level.
3. Rental dynamics and levels
Rental contracts:
– For ZUBAIDA RESIDENCY itself, it is not possible to determine an annual rent level for 1-bedroom apartments from DLD data for the last 12 months — no contracts are recorded.
– At the area level (Wadi Al Safa 3, all units with type “bed room”), the average annual rent over the last 12 months is about AED 779 per m².
Historical rental dynamics for the area:
– In 2022–2023, the average rate was in the range of AED 530–640 per m².
– In 2024, there was a noticeable increase: up to AED 770–880 per m².
– In Q1 2023, there were isolated anomalous values (average >1,600), but thereafter rental levels stabilised in the AED 650–880 per m² range.
4. Liquidity, benchmarks, ROI and fair price range
Liquidity:
– The building demonstrated solid liquidity at the market launch stage (the spike in sales occurred in 2023–2024).
– In Majan (Wadi Al Safa 3), the transaction volume and number of rented 1-bedroom units are very high.
Area benchmarks (last 12 months):
– Average sales price per m² (1-bedroom, Majan/Wadi Al Safa 3): AED 13,515/m².
– Average annual rent per m² (1-bedroom, Wadi Al Safa 3): AED 779/m².
Yield potential:
– Gross ROI for the area = 779 / 13,515 = 5.8% per annum (rounded).
– Indicatively, after accounting for transaction costs (around 7–8%), net ROI* is approximately 5.4% per annum (slightly below the gross figure).
– For an investment-focused buyer, the “fair price range” for a unit targeting a 7–8% yield is AED 9,740–11,130 per m². This is significantly below the current market level in the area and indicates the presence of a “market premium” under conditions of strong demand.
– Current market transactions are closing above this range, which is typical for areas with limited supply and high investment activity.
*Note: the yield calculation is only possible at the area level, not for the specific building, as no valid registered rentals have been found for it over the past year.
5. Investor conclusions
– ZUBAIDA RESIDENCY was sold out quickly and fits well into the current liquidity wave in Majan.
– Market prices for 1-bedroom units are catching up with area-wide trends and may locally lag behind districts with a more established rental track record.
– There is no recorded rental history for this building yet; this is typical for new projects with a high share of investor-owners and rapid sell-out.
– Investment yield in the area is currently around 5.8% gross at prevailing prices (and ~5.4% net, factoring in entry costs). This is below the classic 7–8% “investor benchmark” for the Dubai market.
– For a target yield of 7–8%, the “fair purchase price” for an investor is substantially below the current market level, and a new discount is unlikely — the market is more likely to consolidate around existing price levels with moderate yields.
– The 3–5 year outlook suggests sustained liquidity and upper-market dynamics, high occupancy, but moderate rental yields. At this stage, Majan looks more like a capital preservation and liquidity play than a tool for maximising income.
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