1. Definition of the area and data structure
Actual location: The TOWER 108 building is located in Al Barsha South Fourth, within the master project Jumeirah Village Circle (JVC). This is confirmed by DLD transaction records for this building.
Data structure and volume:
– Over the entire period, 105 sale transactions for studios in TOWER 108 have been registered (from 2020 to 2026; 2026 data was not included in the analysis).
– For studio rentals in this project, the DLD database shows more than 450 contracts (from 2020 to 2026; only active and completed contracts as of today were used for the analysis).
2. Sales dynamics and volume
– Studio transactions in TOWER 108 occur fairly regularly, with activity increasing noticeably in 2023–2024 (for example, 9–7 deals per quarter).
– The average price per square metre in the building has risen from around 8,000–11,000 AED/m² in 2020–2022 to 13,000–15,000+ AED/m² in 2024.
– For the last 12 months, the actual average sale price of studios in TOWER 108 is about 15,212 AED/m².
– Benchmark above: the average price for comparable units in Al Barsha South Fourth over the last year is 15,060 AED/m².
– The price dynamics clearly show that the premium of TOWER 108 over the area is minimal: over the last 12 months, studios in this building have been trading roughly at the average market price for the location.
3. Rental dynamics and volume
– Over the past 5 years, each quarter has seen 10–30 studio rental transactions in TOWER 108. This is a very strong liquidity indicator for this asset class.
– The average annual rental rate for studios in TOWER 108 from 2020 to 2024 has increased from 800–850 to 1,100–1,170 AED per m² per year.
– Over the last 12 months, the average rental rate for studios in TOWER 108 is 1,171 AED/m²/year. For the wider area (Al Barsha South Fourth), the same indicator is 1,040 AED/m²/year. Thus, the building is consistently rented with a small premium to the district.
4. Comparative analysis of returns (ROI) and fair price range
Calculations for the last 12 months (studio level in TOWER 108):
– Average sale price: 15,212 AED/m²
– Average annual rent: 1,171 AED/m²
– Gross yield (ROI before expenses): 7.7%
For Al Barsha South Fourth:
– Average sale price: 15,060 AED/m²
– Average annual rent: 1,040 AED/m²
– Gross yield (ROI before expenses): 6.9%
Adjusting for transaction costs (approximately 7–8% for deal and entry expenses): the actual annual investor return (net ROI) for TOWER 108 is around 7.1–7.2%, and for the district approximately 6.4–6.5%.
Fair price range for an investor targeting a 7–8% ROI (for TOWER 108 studios):
– At a rental rate of 1,171 AED/m²/year, the “investment price” range is 14,638–16,729 AED/m².
– The current actual average transaction price (15,212 AED/m²) falls within this range, indicating a balanced market: at today’s income and price levels, the buyer is achieving around 7–8% annual return “on paper” (excluding individual expenses and vacancy).
5. Conclusions on liquidity, risks and outlook
– In terms of transaction and contract volume, TOWER 108 consistently ranks among the most liquid buildings in JVC and Al Barsha South Fourth: stable deal frequency and a large number of new lease agreements.
– Long-term dynamics show price recovery and growth after the pandemic, with a steady upward trend in rental rates, especially in 2023–2024.
– Returns of 7–8% are almost aligned with the “target” range for the JVC market and comfortably above Dubai’s average for contemporary residential stock.
– The current price level for studios in TOWER 108 does not include a premium to the district and is competitive within the benchmark. Over a 3–5 year horizon, no significant risks to demand and returns are evident, but further yield growth is constrained by the convergence of prices in JVC with other mature districts.
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