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1. Definition of the area and data structure
Actual location: According to DLD, the CLOUD Tower project (both buildings: CLOUD A and CLOUD B) belongs to the Al Barsha South Fifth district and the Jumeirah Village Triangle master project. This district is used as the market benchmark for comparisons.
Data structure and volume:
A significant number of sales of 1-bedroom apartments (1BR) in the building have been recorded starting from Q2 2022, with regular transactions up to the present moment. There is no data in the database on the registration of lease contracts (Ejari) directly for CLOUD Tower, nor for the master project, therefore rental analysis is only possible at the level of the entire Al Barsha South Fifth district. Over the past 5 years, more than 15,000 residential apartment lease contracts have been recorded in the district, which indicates high market liquidity and stable rental demand.
2. Transaction dynamics and purchase prices
Transaction frequency: From the start of marketing and handover of apartments in CLOUD Tower, the first peak of registrations was observed in H2 2022. The number of transactions per quarter for 1-bedroom apartments reached 25–35 in 2022–2023, then the frequency slightly decreased, but sales continued up to the last quarter, which indicates high liquidity of the primary market.
Dynamics of the average price per square meter in the building (1BR):
– In Q2 2022 the average price was about 11,300 AED/m².
– By the end of 2022 – mid‑2023 the price stabilized in the range of 12,000–12,500 AED/m².
– In 2024 growth was recorded: average values reached 14,700 AED/m² in Q2.
– The current average level for 1-bedroom apartments over the last 12 months is approximately 13,890 AED/m².
– The spread across individual transactions is wide; some units were sold above 17,000–20,000 AED/m², which corresponds to peak prices for the smallest or best-view apartments, but the median range for 1-bedroom units in 2024 is 12,000–15,000 AED/m².
District dynamics:
– From 2020 to 2022 apartment prices in the district grew from an average of 6,700–9,500 AED/m² to 10,600–11,000 AED/m².
– In 2023 the district price level increased significantly, reaching 16,600 AED/m² in Q3; in 2024 average values stabilized in the 13,300–14,400 AED/m² range.
– The price over the last 12 months for the district is about 16,210 AED/m² (significantly higher than the average for CLOUD Tower, which is due to the registration of high-end transactions in other projects in the district, as well as high market volatility).
Comparison: The 1-bedroom apartment market in CLOUD Tower is currently trading noticeably below the district average according to DLD. A possible reason is the focus on the affordable investment-apartment segment, a high share of off-plan sales, and the emergence of competing developments.
3. Rental market dynamics
No data for the building: As of the date of analysis, not a single rental contract for CLOUD Tower or for the Jumeirah Village Triangle master project among 1BR apartments has been registered in DLD. Therefore, further analysis is carried out only at the Al Barsha South Fifth district level.
Rental dynamics in the district:
– Since 2020 the average rental rate in the district has been steadily increasing — from 400 AED/m² per year to the current 730–880 AED/m² in the quarters of 2024.
– Over the last 12 months the average registered rental rate for apartments in the district is about 946 AED/m² per year (including all residential apartments and actual Ejari contracts with valid area and value).
Approximately 15,000 lease contracts in recent years ensure stable demand for long-term rentals in Al Barsha South Fifth.
4. Yield analysis and investment attractiveness
It is not possible to calculate ROI for the building, as according to DLD there is not a single registered rental contract for CLOUD Tower. All investment assessments can only be based on the district’s average rental rates.
Current levels (district averages):
– Average purchase price: ~16,210 AED/m² (district), ~13,890 AED/m² (CLOUD Tower building, sales only).
– Average rental rate: ~946 AED/m²/year (district, confirmed by DLD for the last 12 months).
– Indicative gross ROI for the district: 946 / 16,210 ≈ 5.8% per annum.
– Taking into account entry costs (7–8% on entry — DLD fee, brokers, registration), the effective net yield will be about 5.4–5.5%.
“Fair investment price range” (if an investor targets a 7–8% annual yield) for the district at present:
– 946 / 0.08 ≈ 11,825 AED/m² (minimum, for 8% yield)
– 946 / 0.07 ≈ 13,514 AED/m² (maximum, for 7% yield)
The current average transaction price for CLOUD Tower lies within this range (~13,890 AED/m² — that is, it corresponds to the upper boundary of the comfortable range for an investor targeting 7% per year, while the district as a whole in the current cycle is noticeably overheated in terms of purchase price).
5. Comments on liquidity, trends and outlook
– CLOUD Tower is a liquid project within the investment-class segment; the number of transactions and the level of demand allow one to expect a relatively fast resale within the average market exposure period.
– The Al Barsha South Fifth district continues to develop dynamically: the number of tenants and buyers has been steadily growing since 2020, and average rental and sale prices have been rising consistently over the past 4 years.
– The main investment thesis for CLOUD Tower buyers in the current cycle is to capitalize on the relative discount to the district and the potential growth of rental income (as the complex gradually fills with tenants). It is recommended to monitor the building’s occupancy and the appearance of the first rental contracts to refine the market rental rate within the building itself.
– Over a 3–5 year horizon, assuming the current trend continues and there is no sharp increase in supply, prices are likely to remain around current levels with limited upside potential (growth of 5–10% is possible if rental rates consolidate above 1,000 AED/m²/year).
6. Risks
– The absence of registered rental contracts in the building itself makes it difficult to accurately assess the actual yield for an investor (the only benchmark is the district).
– An increase in supply in neighboring districts or projects with better infrastructure may lead to stabilization or a decrease in rental and sale prices.
– A 7–8% yield in the future is not guaranteed and may change depending on local demand and macroeconomic factors.
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