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1. Definition of the area and data structure
According to DLD, Binghatti Canal is located in Business Bay, with the master project also Business Bay. Under the “2 bedrooms” (2BR) filter in Binghatti Canal, the DLD database records 132 transactions. This is a sufficient volume for building-level sales statistics. For rentals in the building itself (and therefore in the master project), not a single valid contract (with confirmed area and annual value) for 2BR apartments was found in the DLD database, so I am forced to analyse the rental market at the level of the entire Business Bay district.
2. Transaction activity and liquidity
For sales of 2-bedroom apartments in Binghatti Canal, the main volume of transactions fell in 2022 (76 deals in Q2–Q4), after which the number of deals decreased to 4–12 per quarter (2023 and early 2024). This is a typical pattern for a new building: a sales peak at launch and handover, followed by more stable ongoing activity. This is a good sign of liquidity, although the bulk of transactions are on the primary market.
In Business Bay, the 2-bedroom apartment market is very active, with a high transaction volume over the last 4 years and a wide range of prices and sizes. This ensures sustainable liquidity and allows the district-level data to be used as a reliable benchmark.
3. Dynamics of average price per square metre (sale)
For 2BR units in Binghatti Canal, the DLD shows the following dynamics of the average price per square metre over the entire period:
– 2022: stable around 14,600–14,700 AED/m².
– 2023: first a decline to 11,600 AED/m² (Q2), then a sharp jump to 17,200–20,300 AED/m² (Q3–Q4).
– 2024: an average level of 16,600–20,200 AED/m².
The average price per m² for 2-bedroom apartments in Binghatti Canal over the last 12 months is 17,640 AED/m².
For Business Bay as a whole (2BR apartments), the average price per m² over the last 12 months is higher: 23,220 AED/m². The dynamics show that prices in the district have been growing faster than in the building under review, exceeding Binghatti Canal by 20–40% since 2022.
4. Rental dynamics (annual rate per m²)
In the building itself and in the Binghatti Canal master project, according to DLD there is not a single valid rental contract for 2-bedroom apartments (most likely the building is still predominantly in the primary market and the rental segment has not yet reached critical mass).
I therefore assess the rental potential based on the entire Business Bay district (all sizes and types of apartments):
– District dynamics: a gradual increase in the average rental rate per m² from 700–900 AED/m² (2020–2021) to 1,300 AED/m² at the current moment.
– Over the last 12 months, the average rental rate in the district is 1,308 AED/m² per year.
This is a meaningful benchmark, but it is important to remember that the spread between buildings and apartment conditions within Business Bay can be very wide; in new buildings the rental rate is higher than in the housing stock as a whole.
5. Comparison of prices, ROI, and investment fairness
– Average current price per m² in Binghatti Canal over the last 12 months: 17,640 AED/m².
– Equivalent district-wide average: 23,220 AED/m².
– Average district rental rate: 1,308 AED/m²/year.
Indicative calculation of gross yield (ROI, brutto) for the district: 1,308 ÷ 23,220 = 5.6%.
For Binghatti Canal it is not possible to calculate ROI honestly, as there are no valid rental contracts of its own. If we assume the district-level rental rate, the ROI at the current building price is about 7.4% (1,308 ÷ 17,640), but I emphasise that this calculation is not based on DLD data for this specific building.
Taking into account transaction costs on entry (around 7–8% of the purchase price), the actual net yield will be lower by 7–8% and may be around 6.8–7.0% for a unit at the stated entry price (excluding vacancy and individual owner expenses).
A fair “investment price” range for an investor targeting 7–8% per annum:
– 1,308 ÷ 0.08 = 16,350 AED/m² (level for 8%)
– 1,308 ÷ 0.07 = 18,690 AED/m² (level for 7%)
Thus, the current average transaction price in Binghatti Canal (17,640 AED/m²) falls roughly within this range and can be considered fair from the perspective of a 7–8% yield target, subject to rental confirmation.
6. Summary and conclusions
Binghatti Canal is a new building in Business Bay, recently on the market, with a sales peak in 2022 and moderately high current transaction activity. The average price in the building over 12 months is noticeably below the district average (at least 20% cheaper), which can be an advantage for an investor. There are still no direct DLD data on actual rentals in this building, so all yield estimates are theoretical and based on district-level figures.
Business Bay consistently demonstrates growth in both prices and rents, with high liquidity. For a conservative investor, purchasing a 2-bedroom apartment in Binghatti Canal at the current average price falls within a fair 7–8% ROI range; however, this yield is not conservative, as rentals in the building are not confirmed by DLD.
Recommendation: Binghatti Canal should be considered as an investment asset only with regard to the potential expansion of the tenant base and confirmation of DLD rental rates, which may turn out to be higher than the district average due to the building’s newness and quality.
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