ROI analysis of apartment in MAYFAIR TOWER: DLD data and real deals

1. Definition of the area and data structure

Actual location: MAYFAIR TOWER is located in the Business Bay district, with the master project of the same name — Business Bay. The linkage to the district and master project is defined directly based on DLD transactions.

The DLD database records 13 sales transactions for 2-bedroom apartments (2 b/r) in this building since 2020, and a large volume of rental contracts across the entire building (around 116 over the last 12 months).

2. Liquidity and market volume

For MAYFAIR TOWER, the transaction frequency for 2-bedroom apartments is quite low: 2–4 deals per year, with isolated spikes in activity recorded in 2022 and 2025. Across the entire Business Bay district, over the last 12 months more than 2,500 transactions were concluded for this type of property, which indicates high location liquidity, although turnover in this particular building is low — it is more of a stable asset with low owner rotation.

In the rental market, MAYFAIR TOWER recorded 116 contracts over 12 months, which confirms steady rental demand in this building.

3. Price dynamics over 3–5 years

We analysed the dynamics of the average price per square metre (AED/m²) for 2-bedroom apartments in MAYFAIR TOWER (only closed transactions up to the current date):

– 2020: 6,916 AED/m²
– 2022: 8,783 AED/m²
– 2023: growth to 9,658–12,430 AED/m² by quarter
– 2024: a new deal at 13,544 AED/m²
– 2025: average 10,932 AED/m² (with a spread of 7,404–13,029 AED/m² across different units)

Over the last 12 months, the average price in the building is 10,932 AED/m² (3 transactions).

For comparison, in Business Bay (2-bedroom units, last 12 months) the average was significantly higher — 23,629 AED/m² (2,583 transactions).

The price range within MAYFAIR TOWER for the latest deals is 7,404–13,544 AED/m². The spread is explained by differences in unit size and floor level (precise correlation requires a separate analysis).

4. Rental analysis and liquidity functions

For MAYFAIR TOWER, the average rental rate per m² over the last 12 months across all apartments is 1,227 AED/m² (116 contracts, with most values ranging from 1,100 to 1,300 AED/m²; there are isolated anomalies up to 1,600 AED/m² for the most compact units, but they do not materially affect the average).

In Business Bay under the same filters: 1,324 AED/m² (17,181 contracts).

Rental dynamics in the building since 2020:
– 2020: 680–825 AED/m² (by quarter)
– 2022: ~815–889 AED/m²
– 2023: 980–1,103 AED/m²
– 2024: already in the 1,161–1,194 AED/m² range
– 2025: 1,215–1,335 AED/m²

This means that over the last 3 years the rental rate has increased by almost 1.5–1.8 times compared to the pandemic level.

5. ROI and investment orientation

Current figures for the building:
– Average sale price per m² (12 months): around 10,932 AED
– Average rent per m² (12 months): 1,227 AED
– Gross yield (brutto): 1,227 / 10,932 ≈ 11.2% per annum

For comparison, across Business Bay:
– Average sale price per m² (12 months): 23,629 AED
– Average rent per m²: 1,324 AED
– Brutto ROI: 1,324 / 23,629 ≈ 5.6% per annum

This difference is due to the fact that MAYFAIR TOWER is still priced significantly below the average market level of Business Bay, while renting at a typical district rate, which results in an abnormally high yield according to DLD data.

Adjustment to estimate net yield (taking into account one-off entry costs of 7–8%):
– NET ROI for the building: roughly 10.4–10.5%
– NET ROI for the district: 5.2–5.3%

Range of “investment-fair price” for an investor targeting 7–8% annual rental yield:
– For the building: fair price range = 1,227 / 0.08 = 15,338 AED/m² (for a target yield of 8%) up to 1,227 / 0.07 = 17,528 AED/m² (7%)
– The current market price in MAYFAIR TOWER is 10,932 AED/m², which is more than 30% below the upper boundary of the “fair corridor”. This is a potential premium zone for an investor — above-market yield with price upside.

6. Conclusions and prospects

MAYFAIR TOWER (2-bedroom units) is a liquid standard apartment complex in Business Bay with solid rental demand and a noticeable price discount versus the district. Over 3 years, the building has seen strong rental growth with only moderate capital appreciation, which has delivered one of the highest yield profiles in the segment.

For an investor, this asset is attractive precisely due to its high yield relative to capital outlay and strong liquidity in the rental market. Over a 3–5 year horizon, there is substantial price growth potential to the 13,000–16,000 AED/m² range, bringing MAYFAIR TOWER closer to the rest of the district while maintaining a strong rental margin.

Yield summary:
– MAYFAIR TOWER can currently deliver up to 10–11% net per annum, including entry costs, which is more than 1.5 times above the average market level in Business Bay.
– A justified investment price range is 15,350–17,500 AED/m², while the asset is currently cheaper in the market.
– Entering at the current transaction price is justified for an investor focused on yield.