1. Definition of the area and data structure
Actual location: According to DLD, MODELUX TOWER 1 is located in Warsan Fourth and is part of the International City Phase 3 master development. The database contains 79 transactions for this building, of which 10 relate to 2-bedroom apartments. For benchmark analysis, we use Warsan Fourth and the higher-level master project.
2. Liquidity, volume and deal structure
Over the past five years, transactions for 2-bedroom units in MODELUX TOWER 1 have taken place every year. In 2021 and 2022 there were 2 transactions each year, in 2023 and 2024 — 1 each, and in 2025 (only actual transaction dates are counted, not future ones) 4 transactions were registered. Overall, the building shows no signs of illiquidity; deal flow is being maintained.
3. Price per m² dynamics — building and area
The average price per square metre for 2BR units in the building has been steadily increasing:
– In 2021 — around 5,300–5,600 AED/m²
– In 2023 — around 5,700 AED/m²
– Over the last 12 months the average level has risen to 7,990 AED/m²
For comparison, in Warsan Fourth over the last 12 months the average price for apartments (without breakdown by bedroom count) was 10,546 AED/m², which is roughly 32% higher than in the building under review. The dynamics show more active price growth in the area (for example, 7,500–11,000 AED/m² over the past 18 months), while in MODELUX TOWER 1 the pace of increase is moderate but positive.
4. Rentals — data availability
No rental contracts for MODELUX TOWER 1 were found in DLD, either for 2-bedroom units or for any apartment types, which is typical for new buildings at the market entry stage. Therefore, direct rental and yield calculations for the building are not possible.
For the International City Phase 3 master project, the average annual rental rate (all apartments) over the last 12 months was 757 AED/m²; for Warsan Fourth the corresponding figure was 756 AED/m². These can be used as indicative benchmarks.
The average rental dynamics for the master project over the last 4 years show gradual, steady growth: 500–550 AED/m² in 2019–2022, an acceleration to 590–900 AED/m² in 2023, followed by stabilisation in the 631–799 AED/m² range at present.
5. ROI and investment outlook
Gross yield* (based on actual prices in the building and average rents in the master project) is calculated as the ratio of the average annual rent per m² (757 AED/m²) to the average purchase price over the last year in the building (7,990 AED/m²):
– Adjusted ROI_brutto for the building (MODELUX TOWER 1, 2BR) ≈ 9.5% per annum
For comparison, at the area level (with average prices of 10,546 AED/m²) ROI_brutto falls to 7.2% per annum.
Taking into account transaction costs on purchase (around 7–8%, including DLD fee, broker commission and registration), net yield (ROI_net) will decrease to 8.8–8.9% for the building and 6.7–6.8% for the area.
A fair price range for an investor targeting a 7–8% annual yield (based on master-project rents) is:
– 9,460–10,814 AED/m². This is above the current price level in the building (7,990 AED/m²), which makes it attractive either for investors expecting further price growth or for a subsequent resale strategy.
6. Investor perspective
MODELUX TOWER 1 is significantly cheaper than the area and master-project average (a 32% discount in price per m²). The shift in price trends in the area (acceleration in 2024–2025) may support additional price growth in MODELUX TOWER 1 over the medium term. In terms of yield, the asset stands out: the calculated ROI_net is above the Dubai market average, especially for a “buy-to-hold” strategy with subsequent leasing (assuming achievable occupancy without prolonged voids).
The absence of rental contracts in DLD for the building itself (at least among registered ones) is not unusual for new stock and does not in itself indicate rental risk, given the strong and liquid benchmark at the master-project level.
7. Brief summary
– MODELUX TOWER 1 (Warsan Fourth, International City Phase 3) among 2BR apartments is a liquid asset that has not yet been overpriced.
– Price growth is steadily positive, while the discount to the wider area persists.
– The current price level in the building makes the potential yield above market (ROI_net ≈ 8.8–8.9%).
– For an investor at this entry point, a fair yield of 7–8% can be achieved even without rental or price growth, while further convergence with the area offers additional upside.
– The main uncertainty is the speed of tenant absorption immediately after the entire complex is delivered to the market.
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