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


1. Definition of the area and data structure

Actual location: According to DLD, the BAYZ TOWER building belongs to the Business Bay district and the Business Bay master development. In DLD the project is also listed as Bayz Tower.

Data volume: The database contains 395 registered sale transactions in the BAYZ TOWER building. For studio apartment rentals (0BR) in the Bayz Tower project, DLD records 719 valid contracts, which allows for reliable conclusions at the level of the analysed unit, the building, and the district.


2. Sales demand and price dynamics

Transaction frequency: BAYZ TOWER shows stable activity over the past years, with transactions recorded on a regular basis and volumes fluctuating by quarter.

Average price per square metre in BAYZ TOWER (studios):
– 2020: 14,960 – 17,190 AED/m².
– 2021: 12,360 – 19,150 AED/m², with a sharp drop followed by recovery.
– 2022: 11,100 – 18,690 AED/m², volatility persists.
– 2023: 16,800 – 18,900 AED/m² with a gradual increase.
– Recent quarters: in 2024 the range is 16,525 – 20,140 AED/m².

For comparison, the average price per square metre for studios in Business Bay is noticeably higher:
– In 2023: 22,130 – 26,500 AED/m².
– In 2024: 25,700 – 28,700 AED/m².

Average price over the last year:
– For the building (BAYZ TOWER, studios): 19,381 AED/m².
– For Business Bay: 28,039 AED/m².

Thus, studios in BAYZ TOWER are 30–35% cheaper than the district average.


3. Rental dynamics and rate distribution

Average annual rental rate per square metre over the last 12 months:
– For studios in Bayz Tower: 1,609 AED/m²/year.
– For studios in Business Bay: 1,615 AED/m²/year.

Average rent dynamics in the building itself:
– 2021: 900 – 1,200 AED/m²/year.
– 2022: 1,170 – 1,360 AED/m²/year.
– 2023: 1,380 – 1,575 AED/m²/year, with further growth to 1,630 AED/m²/year at the beginning of 2024.

District rents have also been rising, from lower levels in 2020 (~860–1,000 AED/m²) to 1,500–1,680 AED/m² in recent quarters.

The rental level for studios in BAYZ TOWER fully matches the Business Bay average and follows the overall district trend.


4. Comparative analysis and yield (ROI)

– Average purchase price (BAYZ TOWER, studios) over 12 months: 19,381 AED/m².
– Average rent (BAYZ TOWER, studios) over 12 months: 1,609 AED/m²/year.

Gross yield (ROI):
– For the building: 1,609 / 19,381 ≈ 8.3% per annum.
– For the district (studios): 1,615 / 28,039 ≈ 5.8% per annum.

Net yield taking into account one-off acquisition costs (≈7–8% on top of entry price):
– For the building: 8.3% / 1.07 ≈ 7.8% – 7.3% per annum.

Investment-fair price range for a 7–8% yield:
– For BAYZ TOWER: 20,100 – 23,000 AED/m² (the upper bound of the range is above the current building average, but significantly below the Business Bay average).
– For Business Bay: 20,200 – 23,100 AED/m² (to achieve a 7–8% yield at the district level, a discount to the current market price per m² is required).


5. Conclusions on liquidity and outlook

Liquidity: High. The volume of sale transactions and rental contracts is consistently large both for the building and the district. Transactions occur every quarter. There is steady demand for studios, and rental rates have been rising in recent years.

Prices: BAYZ TOWER is still priced significantly below the average for studios in Business Bay, while rental rates have already caught up with the district average. This has created an above-market yield window.

Yield and payback: For an investor, the current yield level for BAYZ TOWER exceeds the district average by 2–2.5 percentage points. The building is clearly attractive for investors focused on rental income with high liquidity. Upward pressure on prices from growing demand and rental rates remains.

Business Bay remains one of the most sought-after districts for rental properties, and BAYZ TOWER is among the best in terms of yield-to-entry-price ratio for studios. The attractive price range for investors is up to 23,000 AED/m², while current average deals are closing below this level.


6. Graphical data for analytics (machine-readable block below)

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