1. Definition of the area and data structure
The actual location of THE STERLING EAST HOUSE according to DLD is the Business Bay district, Business Bay master project. All further comparisons by district and master project will be based on this data. The type of the analysed property is a 2-bedroom apartment (2 b/r).
2. Liquidity and transaction volume
For THE STERLING EAST HOUSE over the past 4 years there has been stable sales activity for apartments of this type: the total number of transactions for 2-bedroom units alone is 80. The dynamics are distributed by quarter: peaks in activity were observed in 2022–2023, which indicates high project liquidity and steady market demand.
3. Dynamics of average price per square metre (sales)
The average price per m² for 2-bedroom apartments in THE STERLING EAST HOUSE has shown significant growth in recent years, from 8,345 AED/m² (Q2 2020) to 18,000–25,000 AED/m² in the 2023–2025 period, with quarterly fluctuations. Over the last 12 months, the average price per m² in the building is 22,560 AED/m² (based on actual DLD transactions).
For comparison, the average price per m² across all of Business Bay for Flat-class apartments (with similar filters) over the same last 12 months is 24,160 AED/m². Thus, THE STERLING EAST HOUSE is slightly below the district level: the discount to the Business Bay average is about 7%.
4. Dynamics of average rental price
For THE STERLING EAST HOUSE, the volume of active rental contracts is high (154 contracts for residential apartments over recent years). Over the last 12 months, the average annual rental rate in the building is 1,533 AED/m². For comparison, across the entire Business Bay district the average rate is 1,331 AED/m². Thus, in terms of rent the building exceeds the district’s average market level by ~15%, which indirectly confirms the property’s attractiveness and liquidity.
The dynamics show that rental rates in the building remain stable with minor quarterly fluctuations (from 1,445 to 1,582 AED/m² over the last 4–5 quarters), with no signs of sharp correction or overheating.
5. Investment analysis and ROI
For an accurate assessment of returns, we use DLD data for the last 12 months:
– Average purchase price of a 2-bedroom apartment in THE STERLING EAST HOUSE: 22,560 AED/m².
– Average market rent: 1,533 AED/m²/year.
Gross yield (ROI_brutto) for the building: 1,533 / 22,560 ≈ 6.8% per annum.
For Business Bay under the same filters: 1,331 / 24,160 ≈ 5.5% per annum.
Taking into account standard upfront costs (around 7–8%: DLD fee, brokerage commission and other expenses), the expected net yield for an investor in this building is about 6.3–6.4% per annum (6.8 / 1.07–1.08).
A fair purchase range to achieve a 7–8% yield at the current rental level for THE STERLING EAST HOUSE is 19,160–21,900 AED/m². The actual market is now slightly above this “investment fair value” zone — i.e. to reach a target yield of 7–8%, an investor would need a discount of 3–16% to current market prices (subject to market fluctuations).
6. Comparison with the district and conclusions
– By price per square metre, THE STERLING EAST HOUSE is newer and on average slightly cheaper than the top buildings in Business Bay, while actual rents are higher than the district average. This is an optimal combination for a long-term investor.
– Liquidity based on actual sales and rentals is high: a large volume of transactions and an active tenant market.
– Outlook: Business Bay remains in demand among tenants and buyers, with prices expected to stabilise after recent growth.
– For investors: on a 3–5 year horizon the building looks balanced — liquidity should be preserved, there is no strong potential for accelerated price growth without maintaining a market discount, however the rental yield above the district average allows the asset to be considered as part of a portfolio without critical risks.
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