1. Definition of the area and data structure
Actual location: based on DLD data, The Paragon by IGO is located in the Business Bay district. The master project is also Business Bay. The building name fully matches the DLD database.
2. Analysis of deal volume and price dynamics for studios
For the building (The Paragon by IGO, studios), since 2022 there have been at least 75 transactions. The highest deal volume was recorded in 2022, after which the number of new transactions has gradually declined as sales approached completion. Over the past 12 months there has been only a sporadic flow of studio transactions — the building is in the stage of active handover and occupation by owners.
Dynamics of the average price per square meter in the building for studios:
– 2022 (Q3–Q4): 20,600–21,100 AED/m².
– 2023 (Q1–Q4): growth to a peak of 23,800 AED/m² in Q2, followed by stabilization in the 21,600–22,100 AED/m² range.
– 2024: holding within the 20,800–22,500 AED/m² range.
– The average price per m² for studios over the last 12 months is 24,700 AED/m².
Comparison with Business Bay (studios, last 12 months): the average price per m² is 28,100 AED/m². Thus, Paragon by IGO is selling at a 12–14% discount to the district’s average studio price (a difference of 3,400 AED/m² in favor of the subject building), which is explained by the relatively new status of the project and the ongoing release of units from the developer.
3. Analysis of studio rentals
For The Paragon by IGO itself there are no registered rental contracts for studios — most likely due to the recent completion, gradual move‑in process, and the absence of a rental track record at the time of analysis.
For the master project and the wider district (Business Bay) there is a significant volume of valid rental contracts for studios (more than 17,000 contracts over recent years). The average annual rental rate for a studio in the district (Business Bay, last 12 months) is 1,616 AED/m² per year.
Rental dynamics by period:
– In 2022: 1,050–1,200 AED/m².
– 2023: rapid growth to 1,500+ AED/m², then stabilization at the new levels.
– 2024 (recent quarters): 1,500–1,600 AED/m², with a stable trend.
The number of new contracts shows that Business Bay traditionally enjoys strong demand for studio rentals — confirmed by a contract volume of 700–1,000 per quarter.
4. Liquidity and comparative dynamics
The Paragon by IGO demonstrates solid market liquidity: active transactions at launch, followed by a natural shift towards “secondary market” levels as the building fills up. Average prices remain below the Business Bay district average (by 12–14%).
Studio rentals in Business Bay consistently show high demand from both investors and tenants. These transactional indicators (sales and rentals) confirm the high overall liquidity of the district, even given the substantial supply.
5. Yield and fair price assessment
Since there are no valid rental contracts for studios specifically in The Paragon by IGO, it is not yet possible to calculate a building‑specific yield. However, for the district (Business Bay, studios) the average annual rent per m² over the last 12 months is 1,616 AED.
The current average transaction price for a studio per m² in the subject building is 24,700 AED (last 12 months), versus 28,100 AED in the district.
Indicative ROI for the district (studios in Business Bay only):
– Gross ROI = 1,616 / 28,100 = 0.0575 or 5.75% per annum (before acquisition costs).
– Net ROI including transactional costs (approximately 7–8% on entry): 5.3–5.4% per annum or slightly lower.
“Fair price range” for an investor targeting 7–8% annual yield (based on district benchmarks):
– At rent of 1,616 AED/m²:
– For 7% per annum: up to 23,100 AED/m².
– For 8% per annum: up to 20,200 AED/m².
Comparison: the current studio market is trading above the fair price range for a 7–8% ROI. For Paragon by IGO this gap is smaller, but even so, the building does not provide a yield above 7% per annum at current average transaction prices and the district’s rental benchmark.
6. Conclusions and outlook
– The Paragon by IGO is a new building in one of Dubai’s most liquid districts, with strong demand for rentals and secondary sales.
– Average prices are below the wider district level, making the building potentially more accessible for investors.
– Targeting yields above 7–8% per annum is challenging: the studio rental market in Business Bay has stabilized, while transaction prices in new buildings remain above the “investment‑fair” threshold.
– A competitive advantage of Paragon by IGO from an investor’s perspective may be the relatively low entry point: a smaller gap between purchase price and district rental levels.
– Over the next 3–5 years, further growth in liquidity can be expected as the building fills with tenants, but investors should base their calculations on a more realistic 5–6% net yield, assuming stable or moderately rising rental rates.
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