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

1. Definition of the area and data structure

Actual location: according to DLD, transactions for AG TOWER are recorded in two areas — Business Bay and Jumeirah Lakes Towers. For AG TOWER with 2 bedrooms (“2 b/r”), only transactions in Business Bay were found. This is taken as the “building area” for further analysis.

For sales of two-bedroom apartments in AG TOWER (Business Bay), 34 transactions were found in the DLD database — the sample is sufficient to draw conclusions about sales dynamics and price levels. For rentals in this specific building with this filter (“2 bed rooms” / AG TOWER), there are no confirmed contracts in DLD. Therefore, for rental and yield calculations, we use aggregated data for Business Bay (comparable apartment types).

2. Sales analysis (2BR) in AG TOWER

The price per square meter from 2020 to 2026 shows volatility; however, the overall price level in recent quarters has held in the range of 11,500–14,500 AED/m² (mainly 2023–2025). The average price per m² over the last 12 months was 12,508 AED. In recent years there has been no sustained upward trend: there were both declines (down to 8,940 AED in 2022) and a recovery in 2023 and 2024 to 13–14 thousand AED/m².

For comparison, the price per m² for two-bedroom apartments across Business Bay over the last 12 months is higher — averaging 23,892 AED/m². This means AG TOWER is selling at a substantial discount to the Business Bay market average (approximately 48% cheaper). The same pattern is seen in the quarterly dynamics.

3. Rental analysis in Business Bay

For AG TOWER and even for the master project, no separate rental transaction statistics for this apartment type were found in DLD. Across Business Bay, comparable two-bedroom apartments over the last 12 months were rented at an average of 1,332 AED/m² per year (all residential properties with reasonable floor areas are included). Rental dynamics from 2020 to 2024 show confident growth: from 700–900 AED/m² in 2020 to 1,200–1,350 AED/m² in 2024, i.e. rental rates have increased roughly 1.5–2 times over 4 years.

4. Yield and fair price range

ROI_brutto (calculated using Business Bay area data, as there are no DLD rental contracts for AG TOWER):

– Average sale price over 12 months for AG TOWER: 12,508 AED/m²
– Average rent over 12 months for the area: 1,332 AED/m²
– Gross yield (ROI): 1,332 / 12,508 ≈ 10.65%
– Taking into account initial costs (7%): ROI_net ≈ 10.65% / 1.07 ≈ 9.96%

For an investor targeting a yield of 7–8% per annum, the fair purchase price range per square meter in Business Bay (at current rental rates) is:
– At 8%: 1,332 / 0.08 ≈ 16,650 AED/m²
– At 7%: 1,332 / 0.07 ≈ 19,029 AED/m²

The current price level in AG TOWER (12,508 AED/m²) is significantly below even the lower bound of the fair range, based on current rental rates in Business Bay.

5. Liquidity and outlook

AG TOWER is a building with medium liquidity: there is a stable flow of secondary market transactions, but rentals are only captured at the area level in DLD. The building’s discount to the area average may be linked to its age, interior specifications, location, or lower demand compared to more premium projects in Business Bay.

Overall, for 2-bedroom apartments in AG TOWER over a 3–5 year horizon, the discount to the market is likely to persist. Price growth (if demand for the value segment recovers) may narrow the gap towards the Business Bay median, but the “investment entry” today is significantly more attractive than the broader market.

6. Brief conclusion for the investor

2BR units in AG TOWER are trading at one of the deepest discounts to Business Bay. Using area-level rental rates as a benchmark, the gross yield on purchase significantly exceeds the typical market level (above 10%). Even after all initial costs, the net yield will remain well above Dubai’s standard market range (6–8%). The limitation is the absence of confirmed rental contracts for the building itself, so all yield estimates are based solely on Business Bay area rental rates over the last 12 months.