1. Definition of the area and data structure
Actual location: MODELUX TOWER 1, Warsan Fourth district, master project International City Phase 3. All calculations below are based on verified data from the DLD platform; the full filter was applied strictly by the building name and the district as specified in DLD.
2. Liquidity and transaction volume
Over the past 12 months, there have been 14 sale transactions for studios in this building (MODELUX TOWER 1), which is a quite acceptable liquidity level for a relatively new building and for studios. Over the same period, 20 rental contracts for studios were registered, which also indicates stable demand.
In Warsan Fourth, the sample is even more representative: 647 sale transactions and 2,619 rental contracts for studios over the last 12 months.
3. Sale price dynamics for the building and the district
In recent years, MODELUX TOWER 1 (studios) has shown a steady increase in the average price per square metre: from the 5,700–6,100 AED/m² range in 2021–2022 to 7,430–9,600 AED/m² in 2023–2024. Over the last 12 months, the average achieved transaction price was 9,028 AED/m² (based on 14 deals).
For Warsan Fourth, the trend is similar, but the absolute level is higher: an increase from 5,700–7,300 AED/m² in 2021–2022 to 8,375–12,200 AED/m² in recent quarters. The average price per square metre in the district over 12 months is 12,232 AED/m² (647 deals).
Thus, studios in MODELUX TOWER 1 are trading at roughly a 26% discount to the district average.
4. Rental rate dynamics
The average rental rate for a studio in the subject building over the last 12 months was 789 AED/m² per year. At the district level, the rate is higher — 926 AED/m² per year. The 3‑year trend for the building: from 445–520 AED/m² in 2021–2022 to around 880 AED/m² in 2025 (based on the latest quarters).
5. Comparison of current levels, yield and fair price range
Comparison of average sale prices and rents for the building and the district over the last 12 months (only actual deals and contracts):
– Price per 1 m² in the building: 9,028 AED/m² (studios, 14 deals)
– Price per 1 m² in the district: 12,232 AED/m² (studios, 647 deals)
– Rent in the building: 789 AED/m²/year (studios, 20 contracts)
– Rent in the district: 926 AED/m²/year (studios, 2,619 contracts)
Bruto yield (ROI) calculation:
– For the building ROI_brutto = 789 / 9,028 = 8.7%
– For the district ROI_brutto = 926 / 12,232 = 7.6%
Taking into account all initial costs (7–8% entry), the adjusted ROI_net is estimated approximately at:
– For the building: 8.7% / 1.07 ≈ 8.1%
– For the district: 7.6% / 1.07 ≈ 7.1%
Fair price range to secure a 7–8% annual yield (for the building, based on the average rent):
– 7%: 789 / 0.07 ≈ 11,271 AED/m²
– 8%: 789 / 0.08 ≈ 9,863 AED/m²
The current achieved price level in the building (9,028 AED/m²) is below the fair price range for an investor targeting a 7–8% yield at today’s average rent. This means that at current prices the buyer has a yield buffer above the market target.
6. Investment potential conclusions
– MODELUX TOWER 1 demonstrates stable liquidity in both sale and rental transactions for studios.
– Studio prices in this building are below the district average (26% cheaper), while rents are slightly below the district (~15% discount).
– The building’s yield (8.7% bruto) exceeds both the district average and typical investor targets (7–8% net).
– Under current market conditions, purchasing a studio in the building appears justified for a buy‑to‑let investor: the entry price allows for a yield above the market average.
– Warsan Fourth has shown positive price and rental dynamics over the last 3–5 years, with signs of growing demand and values. The existing “safety margin” from the building’s price discount should be sufficient to remain competitive in the rental market even with a moderate increase in maintenance and service costs.
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