1. Definition of the district and data structure
Actual location: the project The Paragon by IGO is confirmed in DLD data as being located in Business Bay, with the master project also listed as Business Bay.
In DLD_transactions, 467 deals are recorded for the building, and DLD_rent_contracts shows 134 rental contracts, which provides good completeness and reliability for the subsequent analysis.
2. Liquidity and demand structure
Sales: over the last 12 months, there have been 5 transactions for 2-bedroom apartments (2BR) in The Paragon by IGO, which is an average figure for a new business-class building.
Across Business Bay as a whole, there is a very high volume of transactions in the same segment (hundreds of deals per quarter), indicating high liquidity and stable demand.
Rentals: in The Paragon by IGO, more than 130 valid rental contracts (for all apartments) have been registered over the past year, which also confirms strong tenant demand for the property.
3. Sale price dynamics (2BR, AED/sq.m per year)
For The Paragon by IGO, the average price per square meter for 2BR apartments (actual transactions):
– 2022: 12,700 – 15,200 AED
– 2023: 15,800 – 15,600 AED
– 2024 (current): 14,970 AED (median of this year’s transactions; individual deals show spikes due to the small sample size).
For comparison, in Business Bay the price dynamics per sq.m for 2-bedroom apartments are:
– 2021: 13,300 – 15,800 AED
– 2022: 15,700 – 20,600 AED
– 2023: 18,500 – 22,000 AED
– 2024 (January–December): 21,400 – 22,900 AED
We can see a confident and outpacing upward trend in the district compared to the building under review: at the moment The Paragon by IGO is priced 34% below the district average.
4. Market price over the last 12 months
– For The Paragon by IGO (2BR): 15,254 AED/sq.m (5 transactions)
– For Business Bay (2BR): 23,169 AED/sq.m
Price difference: The Paragon by IGO is 34% below the district level based on recent transactions.
5. Rental rates and yield (ROI)
Average annual rental rate per square meter in The Paragon by IGO (for all apartments, due to lack of data for 2BR only):
– Over the last 12 months: 1,685 AED/sq.m/year
In Business Bay (all apartments): 1,477 AED/sq.m/year
6. ROI based on recent data
– For The Paragon by IGO (using the building’s average sale price and rent): ROI_brutto ≈ 1,685 / 15,254 ≈ 11.1%
– For Business Bay: ROI_brutto ≈ 1,477 / 23,169 ≈ 6.4%
Taking into account entry costs (7% for DLD, brokerage, registration, etc.):
– ROI_net for the building ≈ 10.4%
– ROI_net for the district ≈ 6.0%
Fair investment price range for a target ROI of 7–8% per annum:
– For the building: 21,100 – 24,100 AED/sq.m (calculated as 1,685 / 0.08 and 1,685 / 0.07)
– The actual price is below this range, which means an initial yield buffer for the buyer (theoretically, even without price growth and with stable rents, an investor can achieve returns above the district average).
7. Investor outlook
At the moment, The Paragon by IGO looks more attractive than the average entry point in Business Bay for a rental-focused investor. The reason is a relatively low purchase price combined with already high rental rates and strong rental liquidity. Such a mismatch can occur at an early stage of a new building’s operation, as well as due to location or concept choices.
However, it should be borne in mind that the sample of 2BR transactions is quite limited (5 deals per year), and quarterly price dynamics are volatile due to the small volume. With further growth in demand, the building’s prices are likely to move closer to the district average.
In terms of rental rates, the building as a whole already shows a stable tenant flow — 134 contracts per year. The average rent in the building is higher than the district average.
8. Limitations
The ROI and fair price calculations are based on valid DLD data — the only confirmed official transactions and contracts. Any changes in market conditions, additional expenses, or fluctuations in supply and demand may affect returns.
Conclusion: with its current parameters, The Paragon by IGO offers an investor the opportunity to earn a significantly higher ROI than the Business Bay average even under a conservative model, although liquidity for 2-bedroom units (on the resale side) is not yet maximized and requires monitoring at the point of sale/exit from the investment.
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