Report on studio apartments (0BR, Studio) in Alexis Tower, Jabal Ali Industrial Second
1. Area definition and data structure
Actual location: according to DLD, Alexis Tower is located in Jabal Ali Industrial Second, within the master project Down Town Jabal Ali. The database records more than 500 sale transactions for this property.
2. Liquidity of the property and the area
The transaction volume for studios (0BR) in Alexis Tower over the last 4 years has been consistently high: in 2023 there were 50 deals, in 2022 — 96, in 2021 — 46. Over the last 12 months the market has remained active, which indicates solid demand and high liquidity for this product level among small-scale investors. The volume of rental contracts for studios in the building itself is also high (192 in total and dozens in each quarter).
3. Sale price and rental rate dynamics over 3–5 years
Average sale price per square metre (price per sqm) for studios in Alexis Tower:
– 2021: from 11,473 to 12,439 AED/sqm by quarter,
– 2022: from 12,835 to 13,458 AED/sqm,
– 2023: from 12,304 to 13,386 AED/sqm,
– 2024: from 10,952 to 14,753 AED/sqm (by quarter for the current year, 2024),
– Recent quarters (2025/26, based on forward-looking deals): growth to 14,932–16,483 AED/sqm, although some of these units have not yet been handed over.
Average annual rent per sqm:
– 2022: around 643 AED/sqm,
– 2023: around 780–790 AED/sqm,
– 2024: growth to 850–926 AED/sqm,
– 2025: a substantial increase — already from 1,065 to 1,460 AED/sqm (depending on the quarter).
– For studios in Alexis Tower itself, the current rental rate is clearly above the area average.
4. Comparison with the wider area
Over the same period, the average sale price per sqm across the entire Jabal Ali Industrial Second area (apartments, residential stock):
– 2021: range 6,882–10,993 AED/sqm,
– 2022: 11,111–12,024 AED/sqm,
– 2023: 9,944–11,261 AED/sqm,
– 2024: 9,231–14,227 AED/sqm.
Average rental rates in the area were lower than in the building in all quarters, but from late 2024 and especially in 2025 there is a sharp spike: one anomalously high quarter is recorded (likely a data error), yet the multi‑year trend shows a notable increase to 1,173–1,216 AED/sqm, with growth rates slowing towards the end of the period.
5. Market levels over the last 12 months
– Average sale price per sqm for studios in Alexis Tower: 13,716 AED/sqm
– Average sale price per sqm in the area: 13,577 AED/sqm
– Average rent per sqm for studios in Alexis Tower: 1,411 AED/sqm/year
– Average rent per sqm in the area (for all apartment types): 5,170 AED/sqm/year (anomalously high — most likely some contracts were selected incorrectly; further analysis at the building level is more reliable).
6. ROI calculation for an investor
– For the building (studios, last 12 months): ROI_brutto_home = 1,411 / 13,716 ≈ 10.3% per annum (gross).
– For the area: rental data are most likely not representative (value is too high and probably contains anomalies), so ROI for the area is not provided and should not be interpreted.
Adjustment to ROI_net takes into account initial costs (fees, brokerage, discounting, etc.): the effective “net yield” to the investor is ~9.5–9.7% per annum with standard commissions and expenses (assuming total costs of ~7–8%).
Fair price range for an investor targeting a 7–8% yield based on actual rents in the building:
– If we focus on rental income (1,411 AED/sqm/year), the fair purchase price (for a 7–8% ROI) is from 17,638 to 20,157 AED/sqm.
– The current market level (13,716 AED/sqm) is below this range — the discount to the fair value allows the investor to achieve a yield significantly above the typical 7–8% per annum.
– If the target yield is exactly 7–8% per annum, a moderate price increase for this property is acceptable (even a +20% deal price would still be within the upper boundary of the target range).
7. Conclusions for investors and owners
– Alexis Tower shows high liquidity, confirmed by a stable volume of sale and rental transactions.
– The entry price for a studio in the building remains slightly above the area average, but in return the buyer receives a yield significantly higher than the typical 7–8% per annum.
– Over the last 2 years there has been an accelerating increase in both sale prices and rental rates. This makes the property particularly attractive for yield‑focused investors — the current market is clearly not overheated.
– 2–3 year outlook: if current dynamics persist and demand from new residents remains strong, the upward trend is likely to continue.
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