ROI analysis of apartment in Paragon by IGO: DLD data and real deals — 09.12.2025

1. Definition of the area and data structure

Actual location: The residential complex The Paragon by IGO is officially registered in the DLD database as “The Paragon by IGO” and is located in Business Bay (both the master project and the district are Business Bay). The parameter under analysis is studio apartments (0BR, recorded in DLD as “studio”).

The sales database records 75 transactions for studios in this building. For rentals, there are no active DLD contracts recorded in the building. Rental and yield benchmarks are taken at the Business Bay district level, where the sample of valid contracts is very large (historically over 17,000 for studios).

2. Liquidity of the property and the district

In The Paragon by IGO there is confirmed stable demand for studios: 75 transactions, with most unit sizes around 38–42 m², and a wide price range — from 18,600 to 26,200 AED/m²; typically 20,000–24,500 AED/m². The closest context is Business Bay, one of the market leaders by the number of sale and lease transactions.

3. Price dynamics for studios (building and district)

In Paragon by IGO, the average price per m² for studios evolved as follows:
– Second half of 2022: 20,600 – 21,200 AED/m².
– 2023: a peak up to 23,800 AED/m², then a correction to 21,600–22,100 AED/m².
– Last 12 months: an average level of 24,470 AED/m².

For Business Bay (district):
– In 2022, average prices for studios were from 20,000 to 22,500 AED/m².
– In the second half of 2023, a sharp increase to 26,500 AED/m².
– 2024: around 28,700 AED/m² (peaks in some quarters around 29,000 AED/m²).
– The average for the last 12 months is 27,710 AED/m².

Thus, Paragon by IGO is trading at an 11–13% discount to the average market level for studios in the district.

4. Sales characteristics (distribution of sizes and prices)

The size of studios in Paragon by IGO is almost always 38.8–41.9 m². The price per m² range in completed transactions:
– The bulk of contracts: 19,000 – 24,500 AED/m².
– Minimums: close to 18,600 AED/m²,
– Maximums: up to 26,250 AED/m².

This is fairly typical for new complexes with different views and floors, with a clear spread driven by the individual parameters of each unit (view, floor, options).

5. Rental dynamics and levels (by district)

In Business Bay in 2023–2024:
– Studio rental rates increased from ~1,040 to 1,530–1,590 AED/m² per year.
– Over the last 12 months, based on ~3,760 contracts, the average rate is 1,591 AED/m².

Quarterly dynamics: from early 2022, growth from 1,045 AED/m² (Q1 2022) to 1,505–1,584 AED/m² (Q4 2024).

6. Yield (ROI)

Average studio sale price per year in Business Bay: 27,710 AED/m².
Average annual studio rental rate: 1,591 AED/m².
Brutto ROI for the district: 1,591 / 27,710 ≈ 5.7% per annum.

Adjusting for transaction costs (7–8%): net ROI for the district is ~5.3%.

For an investor targeting a yield of 7–8% per annum, the required “fair purchase price” of a studio based on income is 19,900–22,700 AED/m². This is 8–28% below current prices in Paragon by IGO and in the district overall.

7. Conclusion

– Paragon by IGO shows high liquidity and trades at a discount to the district.
– Net rental yield in the district is slightly above 5%, up to 5.7% brutto. To achieve 7–8% yield, a substantial discount to current prices is required.
– The main investment appeal lies in the upside from further formation of the rental base in the building and growth in the capital value of the asset itself.