ROI analysis of apartment in SAFEER TOWER 2: DLD data and real deals

1. Definition of the area and data structure

Actual location: According to the DLD database, SAFEER TOWER 2 is unequivocally classified as being in Business Bay, with the master project also Business Bay. The total number of transactions in the entire building is 191. Across the wider Business Bay area, more than 58,000 sales have been recorded, confirming the high liquidity and maturity of the location.

2. Deal frequency and dynamics, market structure

In SAFEER TOWER 2, transactions for 1-bedroom apartments (1 b/r) have been recorded almost every year from 2020 to 2024, indicating steady market activity in this segment. Over the last four quarters (current snapshot), apartment sales have remained stable, although the quarterly volume fluctuates: in 2024 alone, there were 27 completed transactions specifically for 1-bedroom units.

For the entire Business Bay area, the data also show a consistently strong demand for similar apartments, significantly outpacing the volume in this particular building.

3. Average price per square metre dynamics

SAFEER TOWER 2, 1-bedroom units:
In 2024, based on completed sales, the average price per m² by quarter ranged from 5,394 to 12,280 AED/m² (the average over the last 12 months is around 12,540 AED/m²). In 2023–2020, prices were significantly lower, at times dropping to 3,000–6,000 AED/m²; there is a visible upward trend from 3,504 AED/m² in 2021 to 12,280 AED/m² in spring 2024. However, there are individual transactions with abnormally low and high values — this is important to consider when interpreting averages; extreme values are possible due to one-off listings of units with very different characteristics.

Business Bay (area, 1-bedroom units):
Over the last 12 months, average prices per m² according to DLD were around 24,430 AED/m² — twice as high as in SAFEER TOWER 2. Across the area, the trend is smoother, with growth over 3 years from ~16,000 (2021) to ~23,000–25,000 AED/m² in 2024.

Thus, SAFEER TOWER 2 is trading at a noticeable discount to the area’s average prices, even taking quarterly volatility into account.

4. Rental data and average yield

According to the DLD database, there are no valid rental contracts for the building or master project that explicitly specify 1-bedroom apartments. Across Business Bay as a whole (all residential apartments), more than 84,000 active rental contracts have been recorded — this confirms the very high liquidity and popularity of the location for residential leasing.

The average rental rate in the area over the last 12 months (for all apartments) is 1,330 AED/m² per year. Rental growth since 2021 has been very pronounced: from 700–800 AED/m² to 1,160–1,330 AED/m² by 2023–2024.

There is no separate average rental rate per m² for SAFEER TOWER 2 or for its 1-bedroom apartments in the DLD database. Any yield estimates for the building or a specific unit type cannot be reliably calculated without this data: only the area benchmark can be used.

5. ROI and investment fairness

Since there are no valid rental contracts for the building, ROI can only be estimated using the average figures for residential apartments in the area. For Business Bay:
– average market price per m² over the last 12 months: 24,430 AED (area), SAFEER TOWER 2: 12,540 AED;
– average annual rent per m² (area): 1,330 AED.

Accordingly:
– Rough gross yield (ROI brutto) for the area market: 1,330 / 24,430 ≈ 5.4% per annum.
– For SAFEER TOWER 2, theoretically (if rented at area-average rates): 1,330 / 12,540 ≈ 10.6% gross. But this is only on the assumption that the asset can in fact be rented at the average area rate (which is not guaranteed, especially if the below-market purchase price is linked to technical condition or weaker demand).

The actual net yield for the area market, taking into account initial costs (7–8%), is 5.0–5.1% per annum. For SAFEER TOWER 2, assuming leasing at Business Bay rental rates, the theoretical net yield could reach 9.8–10%; however, the absence of confirmed DLD rental contracts makes such an estimate speculative.

The “fair price range” for an investor targeting a 7–8% yield:
– For a landlord in the Business Bay market: fair price ≈ 16,625–19,000 AED/m² (calculation: 1,330 divided by 0.08 and 0.07 respectively).
– SAFEER TOWER 2 is on average being sold even below this range (12,540 AED/m²), which formally looks attractive for an investor against the backdrop of area rental rates — provided that rental liquidity is comparable.

6. Overall liquidity, outlook and demand structure

According to DLD statistics, SAFEER TOWER 2 is a liquid building, with transactions in the 1-bedroom segment occurring regularly. Business Bay is one of the most active areas in terms of both sales and rentals, with pronounced growth over the last 3 years in both prices and rents.

Purchases of apartments in SAFEER TOWER 2 have been recorded at prices significantly below the Business Bay market average, which may indicate investment appeal, but requires verification of rental liquidity in the building itself (via agency databases or actual leasing history). If the purchase price in SAFEER TOWER 2 remains at this level and the unit can potentially be rented at area rates, the asset is formally in the “high-yield zone” compared to the wider market.

However, without confirmed DLD rental contracts for the building itself or for the specific unit type, it is incorrect to assume guaranteed returns: calculating a building-level ROI is impossible based solely on open DLD data — only the area-wide benchmark can be used.

7. Conclusions

– SAFEER TOWER 2 (1 b/r) is sold at an average price of 12,540 AED/m², which is twice as low as the average price of comparable apartments in the area.
– Business Bay is highly liquid and in strong demand for rentals; rents have grown by 60–80% over the past 3–4 years.
– ROI for the area (payback according to DLD) is 5–5.4% net at current rates and prices. SAFEER TOWER 2 appears “cheap” relative to the market, but there is no rental data for the building.
– An apartment in SAFEER TOWER 2 can be considered a potentially high-yield asset for a value investor. However, it is recommended to additionally verify actual rentability via the agency market.
– The “fair investment price” for a 7–8% ROI target in Business Bay is ~16,600–19,000 AED/m², while SAFEER TOWER 2 is priced below this level.