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1. Definition of the area and data structure
Actual location: The building PALM BEACH TOWERS-2 is registered in the DLD within the Palm Jumeirah area and belongs to the Palm Jumeirah master project. The analysis is carried out for one-bedroom apartments (1BR), in line with the Dubai Land Department (DLD) data structure.
2. Transaction volume and liquidity
There have been 375 sale transactions recorded for PALM BEACH TOWERS-2, with a significant share accounted for by 1BR units. The strongest spike in sales occurred in Q4 2022 (124 transactions), which is typical for new launch projects. After the launch wave, transactions continued through 2023–2024, but at a lower frequency — this indicates good, yet predictably declining turnover as the main pool of investors and end-user demand is absorbed.
Overall, current liquidity for the building can be assessed as high at the market entry stage and stable as the project matures. Palm Jumeirah is one of the largest residential markets in Dubai: almost 30,000 rental contracts (for all apartments) have been concluded there, which further confirms strong liquidity and demand.
3. Sale price dynamics over 3–5 years. Comparison: building vs area
Average price per m² (1BR, PALM BEACH TOWERS-2):
– End of 2022 — around 31,300 AED/m².
– In 2023 — fluctuations in the range of 29,200–32,700 AED/m².
– In 2024 — range of 29,300–31,900 AED/m², with a final average over the last 12 months of 33,100 AED/m² (the increase is driven by new contracts and repricing at the final release stages).
– For comparison, in Palm Jumeirah similar 1BR apartments have averaged 30,270 AED/m² over the last 12 months.
This means PALM BEACH TOWERS-2 is selling at a premium of about 9% versus the area average. At the launch stage this premium was in line with expectations for new, high-end projects in Palm Jumeirah, but the spread to the wider area is not extreme.
4. Rental dynamics and levels
For the new PALM BEACH TOWERS-2 towers, there are no confirmed residential rental transactions (for 1BR or any other unit types) at the time of analysis. This is typical for new developments, especially those not yet handed over or only just starting to be occupied: most primary-market units are occupied later after completion, and owners may delay listing them for long-term rent.
Therefore, an area benchmark is used to estimate rental yields. Over the last 12 months, the average annual rental rate in Palm Jumeirah for apartments (flats) has been 1,561 AED/m², which represents a significant increase compared to historical levels (back in 2021 the figure was around 800–900 AED/m²).
Quarterly dynamics confirm the recovery and growth of rents after the COVID period, reaching 1,390–1,560 AED/m² across the area in 2024.
5. ROI, investment fair value and outlook
Gross ROI based on the latest DLD data:
– For the building itself, it cannot be reliably calculated due to the absence of rental transactions (no verified rental benchmark for the asset).
– For Palm Jumeirah as a whole: average sale price 30,270 AED/m², rent 1,561 AED/m² per year. Indicative gross ROI — 5.2%.
Taking into account standard acquisition costs (fees, commissions — around 7–8%), the expected net yield for the area is about 4.8–4.9% per annum.
Investment fair value at a target yield of 7–8%:
– To achieve a 7–8% yield, with average annual rent of 1,561 AED/m², the fair purchase price range is 19,500–22,300 AED/m².
– Current prices in the building exceed this range by 48–70%.
– In market terms: for a new apartment in PALM BEACH TOWERS-2 to be economically justified purely as a long-term rental investment with fast payback, the purchase price would need to be significantly below current levels, or the building would need to demonstrate consistently higher rental rates than the area benchmark.
6. Key conclusions and outlook
PALM BEACH TOWERS-2 is a new building in one of Dubai’s top districts with strong investment demand at the market entry stage. Liquidity is confirmed by the transaction volume. The average premium to the area is 9%. The steady rental growth in Palm Jumeirah makes the area attractive, but the absence of rental transactions in the building itself does not yet allow for an accurate assessment of its investor yield. At current prices, achieving an ROI above 5% appears unlikely unless actual rents in the building turn out to be noticeably higher than the area average.
For buyers focused on lifestyle or long-term ownership, the asset is attractive in terms of status and location. For short- to mid-term investors, the entry benchmark should be aligned with the area’s “investment fair value” levels, but such pricing for a new build is unlikely without a substantial discount.
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