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1. Definition of the area and data structure
Actual location: Elite Business Bay Residence building, located in Business Bay district, master project also Business Bay (according to DLD).
For this analysis, only data on studio apartments (0BR/Studio) has been used — this is the key segment for the building.
Data volume: DLD records show 850 transactions with apartments in this building and more than 1,160 rental contracts for studios over just the last few years. This indicates high liquidity of the building and strong presence in both sales and rental markets.
2. Transaction and price dynamics over 3–5 years
Sales:
The transaction frequency in the building peaked in 2021 (against the backdrop of handover and the main wave of completions/re-registrations), after which annual volumes have been declining to 80–100 deals per year.
The average price per m² for studios in this building has been growing over the last 3 years. In 2021 it stayed at 12,600–14,200 AED/m², gradually reaching 15,400–16,200 AED/m² in 2023 and exceeding 17,000–17,600 AED/m² in H1 2024. Over the last 12 months the average price was about 14,500 AED/m² (based on transactions at actual payment).
For reference: across Business Bay as a whole, studios are noticeably more expensive — over the last 12 months the average DLD transaction price was 28,000 AED/m². In other words, Elite Business Bay Residence is positioned in the lower/mid segment of the district market.
3. Rentals: levels and dynamics for studios
Elite Business Bay Residence shows a high volume of new rental contracts.
Dynamics of average rental rate for studios:
– In 2021 the average level was 820–930 AED/m²/year.
– In 2022 it increased to 1,150 AED/m², and in 2023 reached 1,140–1,250 AED/m².
– Over the recent quarters of 2024 rents stand at 1,290–1,340 AED/m².
– Average rate according to DLD over the last 12 months: 1,313 AED/m²/year for Elite Business Bay Residence.
For comparison: the average rent for studios across Business Bay over the last 12 months is 1,615 AED/m²/year, which is about 23% higher than in this building.
4. Current market situation: comparison of the building and the district
In Elite Business Bay Residence:
– Average purchase price for a studio per m² over the last 12 months: 14,500 AED.
– Average rent per m² over the last 12 months: 1,313 AED.
In Business Bay overall:
– Average purchase price for a studio per m²: 28,000 AED.
– Average rent: 1,615 AED/m²/year.
Studios in this building are significantly cheaper than the Business Bay market average — the gap in sale prices is around 48%, and in rents about 23%. The reasons are mass-market positioning and strong competition among investors.
5. Yield (ROI) according to DLD
Gross yield (ROI) for the building:
– For Elite Business Bay Residence: 1,313 / 14,500 ≈ 9.1% per annum (calculated using 12‑month averages).
– For the Business Bay market: 1,615 / 28,000 ≈ 5.8% per annum.
– Thus, Elite Business Bay Residence offers a higher yield for investors due to its relatively low entry price, despite more modest rental rates.
Net yield (taking into account entry costs — commission, DLD, registration, vacancy discount, total ~7%):
– Approximate figure: 9.1 / 1.07 ≈ 8.5% per annum.
Fair investment range for purchase at a target yield of 7–8%:
– Fair price for an investor: 1,313 / 0.08…0.07 ≈ 16,400–18,800 AED/m².
– The current market price (14,500 AED/m²) is below this range, meaning a potential buyer can achieve a yield above 8% per annum even at current market levels; no additional discount is required.
6. Liquidity and outlook assessment
– The building demonstrates high liquidity and a substantial volume of DLD‑verified sales and rental contracts — it is a dynamic asset for a mass investor or for rental strategies.
– Price and rental dynamics in the building over the last 2 years have been steadily positive against the backdrop of overall market growth. The transaction range in the building remains consistently below district benchmarks, which provides a yield premium.
– For a conservative investor, the asset looks attractive as a “buy‑to‑let” option with gross yield above the district average. A potential risk is supply pressure from comparable properties in the same segment.
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