1. Definition of the area and data structure
Actual location: MADA Residences Tower is located in the Burj Khalifa area, within the DownTown Dubai master project. Identification is based on DLD data, where the building and project are uniquely defined.
Sample size and structure:
– For 2-bedroom apartments (2BR) in this building, there are 98 recorded sales transactions, and a total of 247 transactions for all apartments; for rentals, there are 649 registered contracts for the entire period, 74 over the last 12 months (but without breakdown by unit type, as no contracts were found in DLD specifically for “2 bed rooms”).
2. Price dynamics for purchases
Over the last 12 months, the average price per square metre in MADA Residences Tower (2BR) was 17,050 AED/m², according to DLD. For comparison, the average for 2-bedroom apartments in the Burj Khalifa area is 23,575 AED/m², meaning the building is noticeably cheaper than the area average (a difference of roughly 27–28%).
Building dynamics over 3–5 years:
– From late 2020 to the present, the average price per m² for 2BR units in the building has increased from ~9,400 to 16,700–17,000 AED/m².
– The growth rate was particularly strong in 2022–2024, with an increase of more than 50% over this period.
– In the second half of 2023 and early 2024, the average price in several quarters exceeded 15,500–17,000 AED/m².
– The size range in the sample is mainly 84–142 m²; the most liquid deals are in the 100–142 m² segment.
The trend shows an upward trajectory, although there is some volatility in individual quarters. Comparison with the wider area shows that Burj Khalifa is significantly more expensive on average, and the “premium” to the area is growing faster — average prices in the area have already exceeded 23,000 AED/m² and continue to rise steadily.
3. Rental market analysis
According to DLD data for the entire building, the average annual rental rate per m² over the last 12 months was 1,141 AED/m² (without breakdown by number of bedrooms, as no rentals were recorded specifically for “2 bed rooms”). The total number of contracts is sufficient for statistical reliability (74 per year).
Over the past three years, the average rent for the whole building has increased from 1,070 to 1,141 AED/m², confirming stable tenant demand and a gradual increase in yields.
The absence of contracts strictly tagged as “2 bed rooms” does not allow us to isolate metrics for 2-bedroom units only; however, the building-wide average for the Downtown Dubai market is comparable to the 2-bedroom segment in other similar developments.
4. Yield (ROI) comparison and investment assessment
– The brutto ROI for a buyer of a 2-bedroom apartment in MADA Residences Tower, calculated as the ratio of the average annual rental rate (for the building) to the average purchase price (for the building, over the last 12 months), is approximately 6.7% (1,141 / 17,050).
– Taking into account transactional and organisational entry costs (around 7%), the net yield (net ROI) will be about 6.3%.
If we compare this with a market target of 7–8% per annum, the range of “fair investment price” for an investor at the given yield can be defined as 1,141 / 0.08 ≈ 14,260 AED/m² (for 8%) and 1,141 / 0.07 ≈ 16,300 AED/m² (for 7%). The current average price in the building (17,050 AED/m²) is above the “investment fair value” range for a 7–8% yield, so purchases now will be of primary interest to buyers focused not only on rental income but also on potential capital appreciation.
For the Burj Khalifa area, brutto ROI based on the same data will be below 5% (at around 1,141 / 23,575 ≈ 4.8%), where the mismatch between entry price and rental rates is even more pronounced.
5. Liquidity and market outlook
Transactions in the building occur regularly; the number of deals in the 2BR segment is stable, indicating solid demand. The volume of rental contracts is also significant, with a steady flow of new agreements each year.
Capital growth prospects are supported by the substantial increase in the building’s average price over the past 3–4 years. The gap between the building’s average price and the wider area creates a local advantage for buyers seeking a balance between comfort, Downtown location, and a more attractive entry price.
Conclusion:
– The average 2-bedroom apartment here is cheaper per m² than the area as a whole and is noticeably more attractive in terms of brutto rental ROI than a typical unit in Burj Khalifa.
– Current price levels are already above the “pure investment” zone for a 7–8% annual yield, so further capitalisation depends on overall price growth in the location.
– Transaction and rental liquidity is high, with no signs of shortage or weakening demand.
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