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1. Definition of the area and data structure
Actual location: According to DLD, The Paragon by IGO is located in Business Bay, with the master project also Business Bay. Reporting data was filtered by exact building name match, apartment type (2 bedrooms), and only for residential units of type Flat.
2. Data availability and structure in the DLD database
A total of 38 sale transactions for two-bedroom apartments in The Paragon by IGO have been recorded since data inception. Transactions have been registered for this building over the last 12 months, which allows us to assess price dynamics and the current price level.
For rentals: there are no recorded rental contracts for two-bedroom apartments, and no valid rental contracts for the entire building and master project The Paragon by IGO have been found in DLD over the last 12 months. Rental benchmarks were calculated using aggregated data for Business Bay.
3. Transaction and price dynamics in The Paragon by IGO (2BR)
The most active transaction period was 2022–2023, with a peak in Q4 2022 (13 transactions), followed by a decline in volume.
Average price per square metre (AED/m²) by quarter:
– Q3 2022: 12,673
– Q4 2022: 15,196
– Q2–Q3 2023: 15,633–15,843
– Q1 2024: 14,969
Transactions closest to the current period (last 12 months): average purchase price — 16,475 AED/m².
4. Comparison with Business Bay (2BR, apartment market)
For two-bedroom apartments in Business Bay, the average price per m² over the last 12 months stands at 23,747 AED/m², which is noticeably higher than in The Paragon by IGO.
Area dynamics since 2022: growth from 18,200 to 22,733–26,661 AED/m² in recent quarters, while price dynamics in The Paragon by IGO lag behind the area both in absolute price level and in growth rate.
5. Rental market and returns (ROI)
There are no recorded rental contracts for two-bedroom apartments in the building or master project The Paragon by IGO. Even for the entire building and master project, no valid rental deals have been registered in recent years.
To establish a benchmark, the average rental rate in Business Bay was used (all apartment types, sample of 84,167 contracts):
– Average annual rent per m² over the last 12 months: 1,324 AED/m²
– Rental growth in Business Bay over the last 2 years has been substantial: from 998 (early 2023) to 1,324 AED/m² (most recent year).
Return calculation (ROI) based solely on the area:
– Gross yield for an investor in Business Bay: 1,324 / 23,747 ≈ 5.6% per annum (brutto, excluding expenses)
– Net yield (including 7% entry costs — DLD fee, agency commission, deductions): 5.6% / 1.07 ≈ 5.2% per annum
6. Fair price range for an investor (7–8% ROI)
At the current rental level (1,324 AED/m²), to achieve a 7–8% yield in Business Bay, the fair price range for an investor is:
– Lower bound (for 8% ROI): 1,324 / 0.08 = 16,550 AED/m²
– Upper bound (for 7% ROI): 1,324 / 0.07 = 18,914 AED/m²
The market price in The Paragon by IGO (16,475 AED/m², DLD data) is close to the lower bound of the acceptable range for an 8% yield, but significantly below the area average.
This makes the asset potentially attractive for an investor focused on long-term income, provided that rental rates in the building reach typical Business Bay levels.
7. Liquidity and outlook
– Transactions in the building were active through 2024 inclusive, after which a decline is observed. The average price is stable but below the area level.
– Business Bay has a strongly growing sales and rental market; liquidity remains very high.
– The main risk factor is the absence of actual DLD-registered rentals in the building itself; therefore, the projected yield is based solely on area benchmarks, which adds uncertainty (especially for new or not yet established buildings).
8. Final conclusions
– The Paragon by IGO (2BR) is selling at a noticeably lower price than the Business Bay average.
– At typical building purchase prices and area-level rents, the yield is close to or even above the area benchmark (7–8%).
– For a final financial assessment and investment decision, it is critical to clarify the actual market rent specifically in this building — given the current transaction profile and price level, the house-offer looks competitive.
– Business Bay demonstrates consistently strong demand, steadily rising rental rates, and high liquidity in the secondary market.
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