1. Definition of the area and data structure
Actual location: the building Palm Beach Towers-2 (official DLD name) belongs to the Palm Jumeirah area and the Palm Jumeirah master project. All figures for the area and the master project are identical.
The DLD transaction database records 382 apartment deals in this building; however, there are no records of sales or leases for studios (0BR) in the building itself. Accordingly, to analyse the studio market we have to use Palm Jumeirah area benchmarks.
2. Liquidity characteristics and demand volumes
Over the past 12 months, 225 sale transactions for studios (0BR) have been concluded in Palm Jumeirah; this is an active level. According to DLD rental data, over the same period 297 rental contracts for studios were registered – this confirms stable demand both for purchase and for rent for this unit type within the area.
3. Price dynamics and levels for studios in the area
Sales (average price per m², Palm Jumeirah, studios):
- Over the last 12 months: 31,581 AED/m².
- Quarterly dynamics: from 2022 to 2024 the average price for studios has increased from 25–29k AED/m² to above 31k AED/m², reaching up to 33.6k AED/m² in certain quarters of 2024.
Price and size dispersion: minimum values for market transactions with studios in the area start at approximately 10,200–15,000 AED/m², while the median is significantly higher — with most deals concentrated in the 22,000–28,000 AED/m² range.
4. Rental dynamics and levels
Annual rent per m² (Palm Jumeirah, studios):
- Over the last 12 months: 2,786 AED/m² per year.
- Quarterly dynamics: after a period of stability at 1,000–1,600 AED/m² until 2022, a sharp increase was recorded, with individual spikes above 4,000 AED/m² in some quarters (these can be treated as anomalies), but the trend has consistently settled in the 2,000–2,800 AED/m² range in 2023–2024.
- The distribution of rents across individual contracts shows that most real deals fall in the 1,200–1,700 AED/m² range, with some extremes both below and above this band (from 600–700 up to 2,500+ AED/m²).
5. Comparative analysis and returns
- Average purchase price for a studio in the area over the last 12 months: 31,581 AED/m².
- Average annual rent for a studio: 2,786 AED/m².
Calculation of gross yield (ROI, gross) for the area:
- ROI = 2,786 / 31,581 ≈ 8.8% per annum (based on confirmed DLD data for studios across the area over the last 12 months).
- Taking into account one-off entry costs (DLD fee, broker, other): the adjusted net yield (ROI, net) will be approximately 8.8% / 1.07 ≈ 8.2% per annum.
Fair price range for an investor targeting 7–8% annual yield on the market:
- At the current average rent level of 2,786 AED/m², the fair price for a 7–8% yield lies in the 34,825–39,800 AED/m² range.
- The actual average price is roughly 10–20% below this range, which provides a modest yield buffer for the buyer.
6. Outlook and conclusions
- In Palm Jumeirah, the studio market is characterised by strong liquidity and stable demand from both investors and tenants.
- Price dynamics over the last 3–4 years show growth in both purchase and rental values, despite some quarterly volatility.
- The gross ROI level for studios exceeds the target range of 7–8% per annum, and net returns, after all costs, are also in line with typical investor expectations.
- At the moment there is a lack of proprietary sales and rental history specifically for studios in Palm Beach Towers-2, but the overall market situation in Palm Jumeirah confirms the investment appeal of studios of this format.
- Any individual investment decisions for this asset should additionally factor in layout, fit-out and the position of the specific unit, but given the area benchmark there are no significant risks associated with purchasing at current price levels.
Graphic data block for charting:
Related Articles
- How to sell a home in Dubai in Vera Residences – analysis 2025
- ROI analysis of apartment in Quayside: DLD data and real deals
- How to buy a property in Dubai in Plaza Boutique 15 – analysis 2025
- Is Dubai the Richest City in the World? Wealth, Millionaires and the Role of Real Estate
- How to buy an apartment in Dubai in Binghatti Canal – analysis 2025
