ROI analysis of apartment in Binghatti Canal: DLD data and real deals

1. Area definition and data structure

Actual location: according to DLD, the Binghatti Canal building belongs to the Business Bay district (area_name_en: Business Bay, master_project_en: Business Bay).

Transaction data for 1-bedroom apartments (1BR) in this building has been available since mid‑2022, with regular sales recorded each quarter (from a few to several dozen transactions per quarter). For rentals, neither for the building nor for the entire master project over the past 12 months were any valid 1BR contracts found – rental and yield analysis is therefore carried out only at the Business Bay district level.

2. Sales dynamics and liquidity

Transaction activity for the building:

– From Q2 2022 to date, more than 130 transactions with 1BR apartments have been completed in Binghatti Canal.
– In 2022, the highest volume fell in Q3 (77 transactions); afterwards the pace slowed, but demand has remained in 2023–2024 (4–10 1BR transactions per quarter).
– In Business Bay, liquidity is high across other buildings as well, with thousands of transactions annually.

Range of sizes and prices (for the building, last 12 months):

– 1BR apartments: size from 65.3 to 70 m² (average ~66.6 m²).
– Price per m²: from 13,505 to 27,850 AED; arithmetic average — 20,784 AED/m².

Across Business Bay the range is much wider due to the heterogeneous stock, but the average for 1BRs is significantly higher – around 24,697 AED/m² (last 12 months).

Average price per m² dynamics for the building:

– From mid‑2022 to mid‑2024 the average price increased from 17,800–18,300 AED/m² to a peak of 24,067 AED/m² in Q2 2024.
– After the peak there is a slight decline and stabilization at 21,000–22,000 AED/m² (Q3–Q4 2024; all 2025 volatility may be related to the staggered handover of keys / DLD registration).
– On average, 1BR prices in Binghatti Canal are about 15–20% below the market average for 1BRs in Business Bay.

3. Rental rates and return on investment

Rent:

– For Binghatti Canal and the entire Business Bay master project, DLD shows no valid 1BR rental contracts over the past 12 months.
– At the Business Bay district level, more than 14,300 rental contracts (all apartment types) have been recorded over the past 12 months. The average rental rate for all apartments is 1,336 AED/m² per year, based on annual contracts and standard unit sizes.

Rental dynamics in Business Bay (since 2021):

– In 2021 — 700–770 AED/m²/year.
– In 2022–2023 — growth to 940–1,300 AED/m².
– From 2024: average quarterly rate of 1,160–1,258 AED/m² (with an accelerating growth trend towards the end of the period).

ROI calculation

Average purchase price of a 1BR in Binghatti Canal over 12 months: 20,784 AED/m².
Average rental rate in Business Bay over 12 months: 1,336 AED/m².

Brutto ROI at district level (it is impossible to calculate it precisely for the building due to the absence of direct DLD rental contracts):

ROI_brutto = 1,336 / 20,784 ≈ 6.4% per annum (gross)

Adjustment for transaction costs: if we factor in standard initial expenses (about 7–8% of the purchase price: DLD fee, agency commission, registration), the effective net yield decreases to roughly 5.9–6.0% per annum.

Investment‑fair price range for a target yield of 7–8% per annum (district level):

– For a target ROI of 7–8%, the fair price lies in the range of 16,700–19,100 AED/m² (1,336 / 0.08; 1,336 / 0.07).
– The current average price in Binghatti Canal is 20,784 AED/m², meaning the building trades at a discount to the Business Bay average, but from a yield perspective its price is above the “investment‑fair” level relative to current market rents: to achieve a 7–8% ROI, a buyer would need either to purchase slightly below the current market or to rely on further rental growth.

4. Liquidity comparison and outlook

Current liquidity in the building remains high; demand has not weakened as construction completes and keys are handed over. The entire Business Bay district remains one of Dubai’s key business and investment hubs with reliable secondary liquidity (both for sales and rentals).

1BR prices in the building are consistently below the district average, which enhances investment appeal through a relatively “discounted entry”. However, the yield based on actual DLD rental contracts in the district is slightly below classic investor benchmarks (6–6.5% net), and to reach a 7–8% ROI may require both a lower purchase price and an expectation of further rental growth.

Overall, Binghatti Canal is a liquid residential asset with solid entry demand and a highly predictable relative value, especially given its location in Business Bay and its more accessible pricing compared with other new projects in the district.

5. Investor takeaways

– Building: high liquidity, solid demand, entry price noticeably below the district average.
– District: stable price and rental growth over the past 3 years, large transaction and rental volumes.
– Rental yield across the full DLD dataset is at about 6–6.5% net per annum at district level (for the building there are no DLD rental contracts, so it cannot be calculated precisely).
– Price fluctuations for the building and the district over the past 3 years are in line with Dubai’s macro trends — there are no signs of overheating or sharp overvaluation.
– A conservative investor should reasonably target ~6% net ROI, either negotiating a discount to the market or factoring in a higher rental growth potential over the next 1–2 years.