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1. Definition of the area and data structure
Actual location: according to the DLD register, the ART BAY EAST building is located in the Al Jadaf area (master project Jaddaf Waterfront). All quantitative assessments for this building and its surroundings are based on data filtered by this area.
For ART BAY EAST and 2-bedroom apartments (2BR), 33 registered sale transactions were identified. The DLD system has no direct rental contracts explicitly linked to this building or the master project, so rental and yield analysis is carried out at the Al Jadaf area level.
2. Sales analysis for the building (ART BAY EAST, 2BR)
Transaction volume and activity
A total of 33 transactions for 2-bedroom apartments have been recorded. The bulk of the deals took place in 2024 (with particularly strong activity in Q2 and Q3).
Price dynamics for the building
Average price per square metre for 2BR apartments in ART BAY EAST (based on 2024–2025 transactions, unit sizes 112–157 sq.m, excluding obvious outliers):
– 2024 (Q2–Q4): 19,483 – 20,251 AED/sq.m;
– 2025 (Q2–Q4): 18,271 – 21,238 AED/sq.m.
The current average price per sq.m in the building over the last 12 months (benchmarking against 2024 Q2–Q4 values) is around 20,000 AED/sq.m.
Size and price distribution: the average size of a 2BR in ART BAY EAST is 135 sq.m, with a range of approximately 112–157 sq.m. The price range in the building is from about 17,000 AED/sq.m at the low end to up to 22,700 AED/sq.m at the high end (based on actual transactions, excluding extreme outliers).
Comparison with the area
Average sale price per sq.m in Al Jadaf (for all modern apartments):
– 2020–2022: 8,700 – 12,400 AED/sq.m (moderate growth starting from 2022).
– 2023: a sharp jump into the 12,800 – 20,400 AED/sq.m range by quarter.
– 2024 (Q1–Q2): 19,400 – 21,700 AED/sq.m.
– The 12‑month area average is around 20,800 AED/sq.m.
Thus, prices for 2BR units in ART BAY EAST are strictly within the market range for Al Jadaf, without any significant premium or discount.
3. Rental rate analysis (Al Jadaf area)
For ART BAY EAST and the Jaddaf Waterfront master project, there have been no registered rental contracts for 2BR apartments in the DLD over the past 12 months, which is typical for new buildings during the initial mass handover and move‑in phase. Therefore, rental income estimates are based on Al Jadaf area data for residential apartments (type “Flat” — the entire residential stock).
The average annual rent per sq.m in the area over the last 12 months is about 950 AED/sq.m/year (this figure is based on a moderately large contract base; however, the size distribution is very wide and includes extreme values, so it is better to focus on the mean).
Rental rate distribution: the range across the area is substantial — the average size of a rented apartment is 101 sq.m, extreme values can be below 100 or above 1,500 AED/sq.m, but most contracts cluster around 900–950 AED/sq.m.
Rental dynamics in Al Jadaf show steady, gradual growth: in 2022 — 620–760 AED/sq.m; in 2023 — 730–830 AED/sq.m; by Q2 2024 the average rate had reached around 940 AED/sq.m.
4. Yield (ROI) calculation and fair price range assessment
Current market price level in ART BAY EAST (2BR): around 20,000 AED/sq.m (close to the area average in recent months).
Average rental rate in Al Jadaf: around 950 AED/sq.m/year.
The current rough gross yield (ROI_brutto) for an owner purchasing at the building’s market price and renting out at average area rates is:
ROI_brutto for the building ≈ for the area = 950 / 20,000 ≈ 4.8–4.9% per annum before expenses.
Taking into account standard entry costs (around 7–8% of the property value), the effective net yield (ROI_net) will be about 4.45–4.6% per annum. In other words, achieving a target yield of 7–8% per annum is not feasible at current prices — a substantial discount to market is required.
Fair price range in Al Jadaf for an investor targeting 7–8% annual yield:
– For a 7% target ROI: 950 / 0.07 ≈ 13,600 AED/sq.m
– For an 8% target ROI: 950 / 0.08 ≈ 11,900 AED/sq.m
The current market price (19,500–21,500 AED/sq.m) is 45–70% above the fair investment range (for passive income purposes).
5. Liquidity and location outlook
Liquidity in ART BAY EAST is high — a large number of 2BR transactions over the last 1–2 quarters and strong demand at the completion and handover stage. Al Jadaf has shown notable price growth from 2022 to date, along with a pronounced increase in rental rates. The area is becoming a fully formed submarket in the central part of the city, and individual transactions in Art Bay East are being concluded close to overall market levels.
Investor outlook: the yield on a buy‑to‑let purchase over a 1–3 year horizon at current prices is average for the market, not exceeding 4.5–5% per annum (gross). Short‑term capital appreciation is only possible if strong demand persists and new supply remains constrained as upcoming phases are completed. For a classic buy‑to‑let investor, entering at current price lists looks expensive — achieving balanced returns is only possible through a targeted search for units priced below 13,000–14,000 AED/sq.m (which appears unlikely in the current demand cycle).
6. Conclusions
– Prices for 2BR units in ART BAY EAST are already in line with the Al Jadaf market, with no premium.
– The average yield in the area is noticeably below strong investment benchmarks (7–8% per annum).
– Core demand comes from end‑users and buyers focused on long‑term capital growth.
– Rental investment appeal is moderate; the fair entry range for a 7–8% ROI is significantly below current market prices.
– Sales liquidity is high; rentals are available, but the limiting factor for leasing is the still small number of handed‑over and rented apartments in the complex.
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