1. Definition of the area and data structure
Actual location: According to DLD, the building MODELUX TOWER 1 belongs to the Warsan Fourth area and the master project International City Phase 3. In the DLD database, there is a sample of transactions for studios (Studio), 1-bedroom and 2-bedroom apartments in this building, but in line with your request, only the studio segment is analyzed.
The DLD database contains more than 60 studio transactions in MODELUX TOWER 1 over recent years, which allows for a confident statistical analysis. No rental contracts were found for the building itself, so all conclusions on rental rates and yields are given at the level of the International City Phase 3 master project and the Warsan Fourth area.
2. Purchase price dynamics and levels
In MODELUX TOWER 1, studio transactions have been taking place regularly over the past 3–4 years. Over the last 12 months, 14 transactions were registered in the building, with a weighted average price of 9,030 AED/m². For comparison, in Warsan Fourth there were 657 studio transactions over the same period, with a significantly higher average price of about 12,240 AED/m². This indicates that MODELUX TOWER 1 is trading at a discount of around 26% to the area, which may be related to rising demand in other new buildings in the area or to specific features of your asset.
The dynamics for the building show a recovery and growth after a slump in 2021 (around 4,800–6,100 AED/m²), followed by a steady move into the 7,400–9,000 AED/m² range in 2023–2024. The Warsan Fourth area as a whole has been more volatile over this period; however, in the last 12 months there has been a clear jump, with the average level exceeding 12,000 AED/m².
The transaction volume in the building is low compared with the area (14 versus 657 over 12 months), but for its category liquidity is stable.
3. Rental dynamics and levels
For the building MODELUX TOWER 1 itself, no rental contracts have been recorded in the database. At the level of the International City Phase 3 master project, more than 2,600 studio rental contracts have been registered over the last 12 months; the average effective rate was 925 AED/m² per year. The corresponding level for the entire Warsan Fourth area is the same, which indicates a highly homogeneous supply.
Rental dynamics in International City Phase 3 and Warsan Fourth show slow growth: in 2022–2024 the average level was around 750–850 AED/m², and currently studio rents are holding in the 830–960 AED/m² range.
4. Comparison of the building and the area, investment parameters and ROI
— Average purchase price (per 1 m²) of a studio in MODELUX TOWER 1 over the last 12 months: 9,030 AED.
— Average purchase price in Warsan Fourth: 12,240 AED/m².
— Average annual rent in International City Phase 3 and Warsan Fourth (studios): 925 AED/m².
Brutto ROI for the building, due to the absence of direct rental data, is calculated at the master-project level:
— ROI_brutto (for the master project) = 925 / 9,030 = 10.2%.
Adjusting for associated costs (7–8% of the purchase price), the effective net yield is ROI_net ≈ 9.5–9.7%.
Investment-fair purchase price range to achieve a target yield of 7–8%:
— Range = rent / 0.08 … rent / 0.07 = 11,560–13,220 AED/m².
— The current transaction price for the building (9,030 AED/m²) is well below this range, which indicates a preserved discount and potential for capital appreciation.
5. Liquidity and outlook
MODELUX TOWER 1 shows low but stable liquidity for studios — about 14 transactions per year. The Warsan Fourth area and the International City Phase 3 master project remain very active segments with steadily growing demand and a large volume of both sales and rental transactions. A key advantage of this asset is the opportunity to enter the project significantly below the average market level, with relatively high yields even at current rental rates.
ROI at the master-project level stands at around 10% brutto — significantly above the typical target yield for Dubai. When buying at current levels, there is additional upside to market price. However, one should factor in the risk that this spread may narrow over the next 1–2 years due to either price growth in the building or a downward adjustment in rental yields.
6. Conclusion
MODELUX TOWER 1 (studios) is one of the most profitable options in the budget/investment segment in Warsan Fourth. Prices are 26% below the area average, while rental levels are comparable to surrounding projects. Brutto ROI exceeds 10%, offering an excellent combination of yield and capital growth potential over a 3–5 year horizon, with possible additional upside if the building’s price further converges towards the market.
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