1. Definition of the area and data structure
Actual location: according to the DLD database, transactions for the requested building under the name PALACE TOWER T2 (marketing name Palace Tower 2) are unequivocally attributed to the Nad Al Shiba area, within the Silicon Oasis master project.
Data on 2-bedroom apartments (2BR) in this building are recorded in the DLD sales registry. In total, 34 transactions with this type of unit have been found in the building’s historical database. We analyse sales and market dynamics both for the building itself and in comparison with the Nad Al Shiba area (aggregation at this area level is relevant, as this is how the address is defined in the DLD).
2. Volume and dynamics of 2-bedroom sale transactions
In the reporting periods from 2020 to 2024, no quarter recorded more than 4 transactions for 2-bedroom apartments in the building (more often 1–4 deals per quarter). This indicates relatively low but regular liquidity. Thus, there is no mass turnover, but there is a stable flow of transactions.
3. Dynamics of the average price per square metre for the building and the area
The average price per square metre in PALACE TOWER T2 for 2-bedroom apartments has fluctuated significantly depending on the period and individual deals:
– In 2021–2022, quarterly averages ranged from 4,500 to 10,800 AED/m².
– In 2023–2024, we see predominantly growth and increased volatility: the average price per m² in individual quarters of 2023–2024 ranged from ~6,300 to ~8,400 AED/m², with a separate spike up to 14,350 AED/m² on certain transactions in 2025 (there are deals registered with a future date — we do not include them for the current market assessment).
Average sale price over the last 12 months for the building: 8,637.7 AED/m².
For the Nad Al Shiba area (comparable 2-bedroom apartments), the average price per square metre over the last 12 months is 8,385.4 AED/m². Thus, prices in PALACE TOWER T2 are in line with the area’s market average; no significant premium or discount relative to the market is observed.
4. Rental market
According to the DLD database, there is not a single valid registered long-term lease contract for residential 2-bedroom apartments in PALACE TOWER T2 for the entire observation period — neither for the building, nor for the master project (Silicon Oasis), nor even for the Nad Al Shiba area over the last 12 months.
In the archives, there is only one valid lease contract for residential properties in the area as a whole (Nad Al Shiba), dated Q2 2022 (rental rate ~143 AED/m²/year). There is no such data for the last 12 months.
Accordingly, it is impossible to correctly calculate the current annual rental rate per m² for the area, the building, or the master project — the DLD database does not currently contain this information.
5. ROI and fair price range for an investor
Given the absence of confirmed DLD data on long-term rentals over the last 12 months both for the building and for the area, it is not possible to calculate a potential yield (ROI) or a fair price range for an investor targeting 7–8% per annum based on DLD data. Any numerical ROI or conclusions about fair pricing without fundamental rental data would be unreliable.
6. Key takeaways and outlook
Based on sale transactions for 2-bedroom apartments, the building demonstrates price stability and liquidity at the area level, with no pronounced discount or premium. At the moment, PALACE TOWER T2 is in line with average Nad Al Shiba pricing, which indicates a fair market valuation of this asset.
It is not possible to guide an investor or owner on yield and entry/exit price in line with target returns using DLD data alone — the long-term rental market in this building and in the area is not confirmed by real contracts over the last 12 months in the DLD.
Prospects for an investor are linked to liquidity in the secondary sales segment; however, calculating rental yield for investment decisions requires collecting current market listings from alternative sources or closely tracking new lease registrations in the future.
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