Berkeley Tower by Ellington Properties is a planned Grade A office tower in Business Bay, Dubai. The project offers investors a chance to enter Dubai’s commercial property market before completion.
The indicative price ranges from AED 4,500 to AED 5,000 per sq ft. The expected handover is in Q4 2031, subject to developer confirmation.
The key question is simple: will future office rents support today’s purchase price?
At AED 4,800 per sq ft, an investor needs annual rent of AED 240 per sq ft for a 5% gross rental yield. A 6% yield requires AED 288 per sq ft. These figures are targets, not promises of future income.
Berkeley Tower Investment Profile
| Project detail | Current information |
| Developer | Ellington Properties |
| Property type | Grade A commercial offices |
| Location | Business Bay, Dubai |
| Building height | Ground plus 62 floors |
| Indicative price | AED 4,500–5,000 per sq ft |
| Example office size | 1,250 sq ft |
| Example purchase price | AED 6 million at AED 4,800 per sq ft |
| Expected handover | Q4 2031, subject to confirmation |
| Payment plan and service charges | To be confirmed |
These details remain provisional. Buyers should check the official price list, payment schedule, service charges and unit plans before paying a reservation fee.
Why Business Bay Could Support Office Demand
Business Bay sits close to Downtown Dubai and Sheikh Zayed Road. Al Khail Road provides another key road link. Business Bay Metro Station gives workers access to public transport.
The district also has hotels, restaurants, residential towers and established offices. These features support daily business activity and may appeal to companies seeking a central Dubai address.
However, location alone cannot guarantee high rents. Tenants also compare parking, office layouts, building services, travel time and total occupancy costs.
Berkeley Tower by Ellington Properties planned Grade A standard could help it compete for tenants seeking modern offices. Its final rental performance will depend on the completed building, operating costs and competing office space.
What current rents tell investors
The available market data offers two reference points:
- Bayut’s displayed 12-month office rental data showed an average annual rent of about AED 153 per sq ft in Business Bay.
- A separate 2026 estimate placed Grade A shell-and-core office rents at AED 140–165 per sq ft.
These figures are broad market references. They do not confirm the rent Berkeley Tower will achieve.
Knight Frank’s 2025 office review reported average Dubai rents of AED 207 per sq ft for shell-and-core offices and AED 248 per sq ft for fitted offices. It also projected total office stock of around 136 million sq ft by 2030, including 13.2 million sq ft of additional gross leasable area.
New supply could give tenants more choice. If demand grows faster than supply, rents may rise. If new offices outpace demand, landlords may need to lower rents or offer leasing incentives.
Berkeley Tower Rental Forecast for 2031
The following scenarios estimate annual rental income for a 1,250 sq ft office. They are planning assumptions, not confirmed forecasts.
| Scenario | Annual rent per sq ft | Annual gross rent |
| Conservative | AED 180 | AED 225,000 |
| Base case | AED 250 | AED 312,500 |
| Strong market | AED 300 | AED 375,000 |
The conservative case assumes rents rise but remain below the levels needed for a strong yield.
The base case assumes Berkeley Tower earns a higher rent because of its location and building quality. The strong-market case requires higher rents and continued demand for modern offices.
Investors should test all three scenarios. A single high-rent forecast can give an overly positive view of future returns.
Gross Rental Yield at Different Rent Levels
Assume an investor buys a 1,250 sq ft office for AED 6 million.
| Annual rent per sq ft | Annual rental income | Gross yield |
| AED 180 | AED 225,000 | 3.75% |
| AED 200 | AED 250,000 | 4.17% |
| AED 220 | AED 275,000 | 4.58% |
| AED 250 | AED 312,500 | 5.21% |
| AED 280 | AED 350,000 | 5.83% |
| AED 300 | AED 375,000 | 6.25% |
These figures assume the office stays occupied for the full year. They exclude service charges, vacancy, fit-out costs, leasing fees and other expenses.
At AED 250 per sq ft, the office generates a gross yield of 5.21%. At AED 300 per sq ft, the yield rises to 6.25%.
For a 5% gross yield, annual rent must reach AED 240 per sq ft at the assumed purchase price. To earn a 6% gross yield, rent must reach AED 288 per sq ft.
Purchase price also affects the result. At annual rent of AED 250 per sq ft, the office generates AED 312,500. A purchase price of AED 6.25 million would produce a 5% gross yield before fees.
Net Yield After Operating Costs
Gross yield does not show how much income remains after expenses.
Assume annual service charges of AED 22 per sq ft. This is an example, not a confirmed Berkeley Tower rate.
For a 1,250 sq ft office, annual service charges would total AED 27,500.
| Item | Annual amount |
| Gross rental income | AED 312,500 |
| Assumed service charges | AED 27,500 |
| Income after service charges | AED 285,000 |
| Yield after service charges | 4.75% |
The 4.75% figure is not the final net yield. It excludes vacancy, repairs, management fees, leasing costs and other expenses.
Investors must also budget for the initial office fit-out. A shell-and-core unit may need substantial work before a tenant can move in.
Purchase costs also reduce returns
The advertised price is not the full cost of ownership. For an illustrative AED 6 million purchase, a 4% Dubai Land Department fee would equal AED 240,000 if that rate applies.
Other costs may include agency fees, registration charges, legal advice and mortgage expenses. Buyers should also confirm the VAT treatment of the transaction with a qualified tax adviser.
For example, if additional purchase costs total AED 600,000, the total investment rises to AED 6.6 million. Annual rent of AED 312,500 would then equal a gross yield of about 4.73% on the total investment.
Capital Appreciation Forecast to 2031
Investors may also earn a return if the office’s resale price rises before or after completion.
The following scenarios show possible 2031 prices for an office bought at AED 4,800 per sq ft.
| Scenario | Illustrative 2031 price | Price change |
| Downside | AED 4,000 per sq ft | -16.7% |
| Flat market | AED 4,800 per sq ft | 0% |
| Moderate growth | AED 5,500 per sq ft | +14.6% |
| Strong growth | AED 6,200 per sq ft | +29.2% |
These figures are examples, not predictions. They exclude inflation, transaction fees and the cost of holding the property during construction.
Future resale prices will depend on rental income, building quality, office supply and buyer demand. A building with reliable tenants and proven rental income may appeal to investors.
However, commercial offices often require a large investment. This can limit the number of potential buyers. Owners who need to sell quickly may have to accept a lower price.
How the 2031 Handover Affects ROI
Berkeley Tower’s expected Q4 2031 handover creates a long wait before rental income begins.
During construction, investors may pay instalments without receiving rent. After handover, owners may need to complete the fit-out, obtain approvals and find tenants.
The first rental payment may therefore arrive several months after completion. A forecast that assumes immediate occupancy could overstate first-year income.
The payment plan will also affect cash flow. Buyers should use the developer’s confirmed payment schedule rather than rely on an unverified plan.
Main Risks Investors Should Consider
Lower rental income: If rents remain below AED 240 per sq ft, the office will not achieve a 5% gross yield at AED 4,800 per sq ft.
New office supply: More completed offices could increase competition and limit rent growth.
Fit-out expenses: Preparing a shell-and-core office for occupation can require significant spending.
Higher service charges: Building operating costs can reduce the income available to owners.
Delayed rental income: Construction delays or a long search for tenants can postpone returns.
Resale uncertainty: The market may not support the expected selling price when an investor wants to exit.
Is Berkeley Tower a Good Investment for 2031?
Ellington Berkeley Tower offers a potential route into Dubai’s commercial office market. Its planned location near Business Bay Metro Station and its Grade A positioning could support tenant demand.
The purchase price remains the key financial test. At AED 4,800 per sq ft, a 1,250 sq ft office costs about AED 6 million. Annual rent of AED 250 per sq ft would generate AED 312,500 before expenses, giving a gross yield of 5.21%.
The final net yield would be lower after operating costs, vacancy and other expenses. Investors must also account for the years without rental income during construction.
The investment case depends on the purchase price, future rent and total ownership costs. Business Bay’s location does not guarantee rental growth or capital appreciation. Before committing funds, buyers should verify the official price list, payment plan, service charges and comparable office rents. They should also test a downside scenario with lower rents, delayed occupancy and no capital growth.