1. Area definition and data structure
Actual location: According to DLD, the TOWER 108 building is located in Al Barsha South Fourth, within the Jumeirah Village Circle master project. The accuracy of this mapping has been verified against real transactions: the building_name_en filter shows a clear association with this specific area and master project. In subsequent calculations for the area and master-project benchmarks, Al Barsha South Fourth is used.
The database contains a large volume of sales and rental contracts for this building, both for studios and for the entire building.
2. Liquidity of the property and the area
Sales
A total of 391 transactions have been recorded for TOWER 108 from 2020 to date. The earliest recorded deals are from early 2020. Transactions have been taking place regularly every quarter up to the present.
Rentals
Over 4 years, 332 valid rental contracts for studios in TOWER 108 have been registered in DLD data, confirming stable tenant demand and high liquidity for the studio format in this building.
3. Dynamics of average price per m² and rents (3–5 years)
Sales prices, dynamics (studios, TOWER 108, quarterly breakdown)
– 2020: average price per m² ranged from 6,100 to 9,400 AED (low base).
– 2021: growth up to 11,370 AED in some quarters, with fluctuations between 8,500–11,400 AED.
– 2022: range of 7,600–11,830 AED.
– 2023: the bulk of sales were in the 9,700–11,630 AED/m² range.
– 2024 (recent quarters): dynamic growth is observed, with the average price per m² at 10,700–14,300 AED.
– Last 12 months: the average transaction level for studios is 15,212 AED/m² (for the building), and 15,060 AED/m² for the entire area (with a slight outperformance of TOWER 108 versus new projects).
Area benchmark (Al Barsha South Fourth, apartments):
The average price in the area over the last 12 months is 15,060 AED/m², which is comparable to current prices in TOWER 108 and indicates no strong premium or discount for studios in this building relative to the area.
Rent, dynamics (TOWER 108 studios, quarterly breakdown)
– 2020–2021: 650–1,000 AED/m²/year, with a downward trend towards a minimum of 770–800 AED/m².
– 2022: growth to 940 AED/m²/year.
– 2023: stable rents of 1,000–1,110 AED/m²/year.
– 2024: the average level has moved above 1,100–1,145 AED/m² (Q1 2024 — 1,102 AED/m², Q2 — 1,093, Q3 — 1,127, Q4 — 1,145 AED/m²).
– Over the last 12 months: the average annual rental rate for TOWER 108 studios is 1,171 AED/m².
Rent across the entire building (including other units, not only studios): 959 AED/m²/year (last 12 months).
Closest area benchmark (Al Barsha South Fourth, all apartments): 1,040 AED/m²/year.
Overall: studios in TOWER 108 rent above the area market (by about 12%), while other apartment types are closer to the area average.
4. Comparison of price_psm and rent_psm levels (building vs area)
– Average sales price over 12 months (studios, building): 15,212 AED/m²; area average — 15,060 AED/m².
– Average studio rent (building) over 12 months — 1,171 AED/m²/year; area average — 1,040 AED/m²/year.
The building does not show a clear price premium to the area (the gap is within 1%), but in terms of studio rents it significantly outperforms the area averages.
5. ROI (yield) and assessment of investment attractiveness
ROI_brutto (building, studios):
– 1,171 AED (studio rent, per year) / 15,212 AED (studio price) ≈ 7.7% per year (gross).
ROI_brutto (entire building, all apartments): 959 / 15,212 ≈ 6.3% (gross).
ROI_brutto (area): 1,040 / 15,060 ≈ 6.9% (gross).
Adjustment for transaction costs (ROI_net): taking into account all formal and related entry costs (around 7%), the effective net yield will be 6–7% lower, i.e.:
– ROI_net (studios, building) ≈ 7.7% / 1.07 ≈ 7.2% per annum.
– ROI_net (entire building): ≈ 5.9%.
– ROI_net (area): ≈ 6.4%.
6. Fair investment price range (for a target yield of 7–8% per annum)
Based on the average 12‑month rent for studios:
– For a target yield of 7–8%, the fair price range is: 1,171 / 0.08 = 14,638 AED/m² (8%) and 1,171 / 0.07 = 16,729 AED/m² (7%).
The current average transaction in the building is 15,212 AED/m², which lies fully within this fair range of 14,600–16,700 AED/m².
This indicates no pressure for a discount: on paper, the yield is close to an investment‑justified level, and the price is within a corridor that can deliver 7–8% per annum given current tenant demand.
7. Conclusions and outlook for the investor
– In terms of both sales and rentals, TOWER 108 demonstrates high liquidity for purchase and for lease.
– The sales and rental dynamics for studios over the last 2 years show confident growth in both capital values and yields.
– The building is in line with the area on pricing, but consistently outperforms in studio rental levels, thereby providing higher landlord returns.
– ROI for TOWER 108 studios is above the area average and close to the upper bound of investment‑grade yields in Dubai (gross yield above 7.5% per annum, net after costs around 7.2%).
– For a “conservative” investor, the current price sits within a range that delivers the desired income level.
– The probability of sustained tenant and investor demand over a 3–5 year horizon is high, especially as no significant discount to the market is required to support it.
Bottom line: a studio apartment in TOWER 108 (Al Barsha South Fourth, Jumeirah Village Circle) is one of the few dominant rental options in the area, almost fully “market‑priced” on the purchase side, with a gross ROI of at least 7.5% and a reasonable corridor of “fair” investment pricing. There are no signs of an overheated or overvalued market for this asset.
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