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1. Area definition and data structure
Actual location of the property: The Paragon by IGO is located in Business Bay according to DLD data (area_name_en = ‘Business Bay’, master_project_en = ‘Business Bay’).
Data structure: 335 transactions for 1-bedroom apartments have been registered in this building. No valid rental contracts were recorded either for The Paragon by IGO or for the entire Business Bay master project; therefore, rental rate analysis is only possible for all residential apartments in Business Bay as a whole. This is typical for new properties or newly handed-over buildings.
2. Liquidity, volumes and sales dynamics
For The Paragon by IGO (1 bedroom), the transaction peak occurred at the end of 2022 (up to 121 deals per quarter). Afterwards, volumes gradually declined to 6–21 deals per quarter in 2024–2025, reflecting the natural slowdown in activity after the peak of primary sales. Across Business Bay, the dynamics of transactions for similar units (1 bedroom) remain consistently strong: over 1,000 deals per quarter in 2024–2025. This indicates high liquidity and sustained investor interest in the 1-bedroom apartment segment.
3. Price dynamics and market level
The average price per square metre for The Paragon by IGO (1 bedroom) shows growth: in Q3 2022 it was around 16,300 AED/m², and in the last four quarters of 2024–2025 it moved into the 18,300–21,900 AED/m² range. The average price per m² for The Paragon by IGO over the last 12 months amounted to 19,301 AED/m².
For comparison, for 1-bedroom apartments in Business Bay the current average transaction level per m² over the last 12 months reached 24,552 AED/m², and by quarters in 2024–2025 has been holding in the 22,600–25,800 AED/m² range. Consequently, transactions in The Paragon by IGO have on average been 20–25% cheaper than the district average over the last 12 months.
4. Rental dynamics
The DLD database contains no recorded rentals for The Paragon by IGO or for the premium 1-bedroom segment within the district. We can only rely on averaged data for Business Bay as a whole (across all sizes and apartment types).
Over the last 12 months, the average rental rate in the district for the entire residential stock was 1,309 AED/m² per year. Quarterly dynamics show an acceleration: in 2023 the rate stayed at 1,000–1,300 AED/m², while in 2024–2025 it has been consistently in the 1,250–1,370 AED/m² range.
5. Comparison of current levels: building vs. district
Price per m² for the building — 19,301 AED/m² (1 bedroom, last 12 months).
Price per m² for the district — 24,552 AED/m² (1 bedroom, last 12 months).
Rent per m² for the district (all types) — 1,309 AED/m² per year (last 12 months).
Rent for the building itself has not been estimated by analogy due to the absence of contracts — an upward shift is possible for premium new developments.
6. ROI calculation and “investment fair price”
For The Paragon by IGO it is not possible to calculate ROI based on DLD data for the building or the master project due to the absence of rental contracts, so we calculate it only for the district as a whole:
– Gross yield for Business Bay: 1,309 / 24,552 ≈ 5.3% per annum.
– After accounting for initial costs (7–8%): the effective net yield for an investor will be about 4.9–5.0% per annum.
The “fair price” threshold for a 7–8% yield is calculated only for the district:
– For 7% per annum: 1,309 / 0.07 ≈ 18,700 AED/m².
– For 8% per annum: 1,309 / 0.08 ≈ 16,360 AED/m².
This means that the current transaction level in The Paragon by IGO, now at around 19,300 AED/m², is close to the lower boundary of the fair range for a 7% yield, whereas the district average price is already clearly above this range and requires a substantial discount to meet yield targets.
7. General conclusions and investment outlook
– Liquidity of The Paragon by IGO is confirmed by the sales volume, but current transactions are sporadic — the main volumes were absorbed at the construction and handover stages.
– Business Bay as a whole remains one of the most liquid and sought-after districts in the Dubai market, with a historic price uptrend and stable rental demand.
– The current price level in the building is closer to the investment fair level for a 7% yield, whereas the average transaction in the district has already moved above this range.
– The district ROI (5.3% gross, 4.9% net) is noticeably below the target level for most investors seeking 7–8% per annum, which explains the increased caution in non-speculative purchases.
– The Paragon by IGO looks attractive for strategic investors with a 3–5 year horizon only if prices are maintained or further reduced, or if rental rates for new leases demonstrate a premium to the district average.
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