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

1. Definition of the area and data structure

Actual location: According to Dubai Land Department (DLD), BAHWAN TOWER belongs to the Burj Khalifa area and the DownTown Dubai master project. All subsequent metrics for the area and the master project are based on this unambiguous confirmation in the DLD database.

The apartment sales data form a complete and valid sample for the analysis of 2-bedroom units. A total of 142 transactions for 2-bedroom apartments in this building have been recorded. In terms of sales volume and market activity, Burj Khalifa is one of the largest areas in Dubai (over 36,000 apartment sales over the entire period). The rental market is also large (over 52,000 contracts). However, for BAHWAN TOWER itself and the DownTown Dubai master project, there is no confirmed DLD data on 2-bedroom apartments among rental contracts.

2. Deal frequency and dynamics for the building

BAHWAN TOWER has shown steady transaction activity for 2-bedroom apartments from 2020 onwards. The periods of highest frequency are 2021 and early 2022, as well as spikes in activity in certain quarters of 2023–2025 (by deal registration date). The number of registrations per quarter reflects stable interest from investors and end users, and the data structure allows for a reliable price-per-square-metre trend to be built.

3. Price dynamics and level per m²

The average transaction price per square metre for 2-bedroom apartments in BAHWAN TOWER over the last 12 months is about 15,400 AED/m². By comparison, across the Burj Khalifa area as a whole (2-bedroom and other apartments within a comparable size range), the average price over the last 12 months is approximately 21,875 AED/m².

The dynamics for the building are as follows: from 2020 to 2022 prices were stable at 10,000–13,000 AED/m², then from mid-2022 and especially in 2023–2025 they increased to the current 15,000–17,000 AED/m² (there are individual quarters with outliers above 17,000, but the average remains below the overall Burj Khalifa level). Over the same period, the Burj Khalifa area has been in the 19,000–22,000+ AED/m² range, which is 35–45% higher than the building’s average price. This positions BAHWAN TOWER as an asset with a notable discount to the location’s average market level.

4. Rental market analysis

The analysis confirms that for BAHWAN TOWER and the DownTown Dubai master project there have been no valid 2-bedroom rental contracts registered in recent years. This is typical for a number of modern projects in Downtown Dubai: rental flows are recorded in the DLD system with a significant lag, or a substantial share of contracts is not processed officially through the system (common for premium and new properties).

Therefore, to estimate average rents and yields, we have to use the area benchmark (Burj Khalifa). The average annual rental rate per m² in this area over the last 12 months is 1,594 AED/m², with a pronounced increase over the last 2 years (from ~1,100 to 1,500+ AED/m²). Rental dynamics show regular, steady growth, correlating with strengthening investment demand.

5. Comparison of building and area prices, liquidity

BAHWAN TOWER shows a significantly lower average price level compared to the Burj Khalifa area — about 15,400 AED/m² versus ~21,900 AED/m² in the area (–30–35%). The price dynamics are similar: the building is appreciating more slowly than the core area, but offers a favourable setup for yield and liquidity due to the discount.

The transaction volume (142 deals for the asset) confirms high liquidity for an investor — there are no pronounced “quiet” periods; sales are recorded quarterly and annually over the past years.

6. ROI assessment for an investor

Using the average sales and rental values over the last year (15,400 AED/m² and 1,594 AED/m²), we can estimate the potential gross yield (ROI):

For the building (using the building’s price and the area’s rent): ROI_b = 1,594 / 15,400 ≈ 10.4% (gross)
For the area (for comparison): ROI_area = 1,594 / 21,875 ≈ 7.3% (gross)

Adjusting for standard transaction costs (7–8% added to the entry price) reduces the net yield (ROI_net):

For the building: around 9.7% (with 7% costs);
For the area: around 6.8% (with the same costs).

This means that for an investor targeting a 7–8% annual yield, the current building price is already comfortable: the fair price range for an exit yield of 7–8% is 19,900–22,770 AED/m² at the current market rental levels. BAHWAN TOWER is trading below this mark, creating an “income premium” for investors. For the Burj Khalifa area, current deals deliver an ROI slightly above the rental benchmark and close to 7% per annum (excluding vacancy and maintenance).

7. Outlook and comments

For 2-bedroom apartments, BAHWAN TOWER offers an attractive entry price for investors, with good liquidity and stable demand. Price growth is lagging behind the central area’s pace, but yields are higher than the Downtown Dubai average. The area remains one of the most stable rental markets, with steadily rising rates. The main limiting factor is the lack of official DLD rental statistics specifically for this building; any individual deals should be further verified against market sources.

Over a 3–5 year horizon, the building has solid potential for further capital appreciation as the discount to the area narrows and strong rental demand persists.