1. Definition of the area and data structure
Actual location: MAYFAIR TOWER is a residential building located in Business Bay (according to DLD: area_name_en = ‘Business Bay’, master_project_en = ‘Business Bay’). The analysis focuses on the market for 1-bedroom apartments (1 b/r) in this building based on sale transactions, with a comparison to sale prices and rental rates across the entire Business Bay area. According to the rental table (DLD_rent_contracts) for the building itself and the master project, there are no valid contracts recorded for 1-bedroom apartments — therefore, further rental analysis is carried out at the level of the whole Business Bay area.
2. Transaction scenario and sale price dynamics
Over the entire period, 143 transactions for 1-bedroom apartments have been registered in MAYFAIR TOWER. In the wider Business Bay market, the number of such deals is significantly higher (tens of thousands of contracts over the same period).
Dynamics of average prices per m² in the building:
From 2020 to date there has been a steady increase in the average price: from around 8,000–10,000 AED/m² in 2020–2021 to 13,500–14,800 AED/m² in 2024. The latest available values for the building are on average around 14,000–15,000 AED/m², while the quarterly lows in 2020 were only about 8,000 AED/m².
For comparison, in Business Bay the average sale price of 1-bedroom apartments over the same period is significantly higher: from ≈13,000–15,000 AED/m² in 2020–2021 to 23,000–25,000 AED/m² in 2024. Thus, in terms of sale price per m², MAYFAIR TOWER is noticeably cheaper than the district average.
Current average price per m² (last 12 months):
– MAYFAIR TOWER (1-bedroom): around 16,400 AED/m².
– Business Bay (1-bedroom): around 24,550 AED/m².
The gap between MAYFAIR TOWER and the district is about 33–35% in terms of average price per m²; MAYFAIR TOWER appears more budget-friendly than the average Business Bay level.
3. Rental rate dynamics and levels
According to the DLD database, there are no valid rental transactions for 1-bedroom apartments in MAYFAIR TOWER or in the master project. At the Business Bay district level, the volume of contracts is large (over 80,000 records, indicating very high liquidity in the rental market).
Dynamics of average annual rent per m² in Business Bay:
– 2020: 700–900 AED/m²/year
– 2021–2022: growth to 800–940 AED/m²/year
– 2023: jump to 1,000–1,300 AED/m²/year
– 2024: 1,160–1,250 AED/m²/year by quarter; for the last 12 months — around 1,327 AED/m²/year
4. Comparison of the building and the district, liquidity
– Liquidity in the building is moderate: more than 140 transactions are recorded over the observation period, confirming stable demand and interest from both end-users and investors.
– In the Business Bay rental market, the flow of contracts is very high — the district is extremely attractive for tenants.
5. Yield (ROI) and investment summary
Current indicative yield (gross ROI can only be calculated at the Business Bay district level due to the absence of valid rental contracts for the building in DLD):
– Gross ROI for the district:
– rent/price = 1,327 / 24,550 ≈ 5.4% per annum (calculated using the average price and rent over the last 12 months in Business Bay).
– Gross ROI for the building cannot be calculated due to the lack of rental data in DLD.
– Adjusted (net) yield, taking into account transaction costs (7–8% of purchase price): around 5.0% per annum for the district.
Fair investment price range (calculated for a target ROI of 7–8% per annum, based on average rent in Business Bay):
– Maximum price at which a 7–8% ROI is achievable: 1,327 / 0.08 ≈ 16,600 AED/m² (for 8% ROI) and 1,327 / 0.07 ≈ 18,950 AED/m² (for 7% ROI).
– The current sale level in MAYFAIR TOWER (≈16,400 AED/m² over the last 12 months) is close to this “fair” range. The price per m² in MAYFAIR TOWER allows an investor to target a 7–8% ROI with stable leasing, provided the unit can achieve the prevailing market rental rate of the district.
However, once again: since there are no confirmed rental contracts for the building in DLD over the last 12 months, ROI and indicative figures are only possible by benchmarking against district-level data.
6. Conclusions
– MAYFAIR TOWER is an affordable option in Business Bay for purchasing a 1-bedroom apartment for leasing purposes, with a capital value per square metre noticeably below the district average.
– Transaction liquidity in the building is moderate.
– In terms of rentals, the building significantly lags behind other projects in the district by the number of DLD-registered contracts, which may be due to a practice of informal/off-record deals or a low share of rental units in this asset.
– Investors targeting a 7–8% ROI may consider purchases specifically in this building, as current sale prices are at the lower boundary of the district’s “investment fair value”, all else being equal.
– The absence of confirmed DLD rental data for the building is an important factor: income projections rely solely on district-level rental benchmarks, and the risk of underperforming the average market rental income is higher.
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