1. Area definition and data structure
Actual location:
– Building: Alexis Tower
– Project: Alexis Tower
– Master development: Down Town Jabal Ali
– DLD district: Jabal Ali Industrial Second
Data for 2-bedroom apartments in this building has been available in the database since 2021, with the latest registered sales in 2025 (there is an overlap with off-plan/future registrations).
2. Sales dynamics and deal structure
Over the past ~4 years, 18 transactions have been recorded for 2-bedroom apartments in Alexis Tower. Sales started in 2021, with the majority in 2024–2025 (according to DLD, part of the registrations is recorded with a time lag).
Timeline of average price per square metre (AED/m²):
– In 2021–2023: in the range of 10,350–10,900 AED/m²;
– In 2024 — a slight decline and volatility: from 8,500 to 10,800 AED/m²;
– Including over the last 12 months, the average transaction price in the building: 11,043 AED/m² (7 deals);
– Over the same period in Jabal Ali Industrial Second (all apartments): 13,482 AED/m² (698 deals).
In recent quarters the district has seen a significant increase in the number of transactions (dozens to hundreds of sales per quarter), with the average district price 10–25% higher than in the building.
3. Rental dynamics
DLD records show a significant number of lease contracts across all apartment types in Alexis Tower. However, filtering specifically for 2-bedroom units did not return results, so the analysis was carried out for the entire building.
– Average rental rate in the building (last 12 months, all apartments): 1,293 AED/m²/year (272 active or newly signed contracts over 12 months).
– For comparison: in Jabal Ali Industrial Second the average rental rate for the same period is 5,186 AED/m²/year (847 contracts). This figure is abnormally high and likely reflects errors/outliers, as a more detailed quarterly breakdown shows historically lower levels (900–1,200 AED/m² by 2024–2025).
Rental dynamics in the building:
– By quarters of 2025: the average rental rate is volatile between 1,237 and 1,434 AED/m²;
– In the district there has been a substantial increase in rents from 2021 to 2025: roughly from 550 to 1,200 AED/m².
4. Yield and fair price assessment
– Average transaction price in the building over the last 12 months: 11,043 AED/m².
– Average rent in the building over the last 12 months: 1,293 AED/m².
– Gross yield (ROI before expenses): 11.7%.
– For comparison, at the district level (if we still use the average figures despite anomalies): gross yield could be higher (theoretically up to 38%, which clearly indicates major rental outliers — these values should not be treated as representative).
Adjusted net ROI (including 7–8% acquisition costs): around 10.8–10.9% (1,293 / 11,043 / 1.08).
Fair price range for an investor (with a target yield of 7–8%):
– Minimum “investment-fair” price in the building — 16,166 AED/m² (annual rental income divided by 0.08) up to 18,471 AED/m² (rental income divided by 0.07).
– Actual sales over the last 12 months are significantly below this range, meaning the current market allows an investor to achieve yields above the target 7–8%.
5. Liquidity and market conclusions
– Alexis Tower (2-bedroom apartments) demonstrates stable liquidity: transactions appear regularly, while the district records hundreds of registrations per quarter.
– Rentals in the building are in strong demand, with very high contract turnover.
– Price dynamics: moderately stable. Historically, the price per m² in the building has been more stable and slightly lower than the district average.
– Rental dynamics: pronounced growth in rental rates both in the district and in the building. In the building, yields remain at 10–12% gross, which is above baseline market expectations.
6. Investment potential
– For an investor, Alexis Tower is currently a location with extremely high gross yields (versus the market norm of 7–8%). Both speculative and investment strategies look attractive, depending on the district’s development scenario.
– However, there is a notable premium in the rental market (or some underpricing in current sales): it is possible to buy below the “investment-fair” level due to strong competition on the supply side.
– For a seller: actual sale prices today are below the investment benchmark, meaning a seller will need to accept a discount — or wait for potential price growth if the district continues to develop.
– For an investor: market-based ROI above 10% even after all adjustments is a rarity for Dubai at the current stage.
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