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1. Definition of the area and data structure
Actual location: according to DLD, Peninsula One is located in Business Bay, with Business Bay also being the master project.
There is transaction data for sales of 1-bedroom apartments (1BR) in the building (333 transactions), which provides a statistically representative sample. The DLD database contains a substantial number of rental contracts for Business Bay as a whole, but there is no rental data specifically for Peninsula One (or even for the master project). Therefore, for rent and yield we have to rely on average figures for the entire Business Bay area.
2. Dynamics and volume of transactions in the building
During 2022–2024, the peak number of transactions was recorded in Q1 2022 (130 deals), after which volumes declined. Over the last 12 months, 38 sales of 1-bedroom apartments have been registered. There are no signs of liquidity issues for the asset: investor interest was strong at launch, and the market has since shifted mainly to secondary resales.
3. Price dynamics in the building and the area
The average purchase price of a 1-bedroom apartment in Peninsula One increased from approximately 19,500–22,000 AED/m² at the beginning of 2022 to 26,000–28,000 AED/m² by mid-2024. The average price over the last 12 months in the building is 27,150 AED/m².
For comparison, the average price per m² for 1-bedroom apartments in Business Bay over the last 12 months is 24,540 AED/m². Thus, Peninsula One is currently trading at a premium of about 10% to the area average.
The area as a whole shows a similar positive trajectory, but both the growth rate and absolute values in Peninsula One are higher, which is linked to the newness and quality of the complex itself.
4. Rental dynamics in the area
According to DLD, more than 84,000 rental contracts across all apartment types in Business Bay have been registered in the last 12 months; there is no specific rental data for 1-bedroom units in the building/master project itself. Across the area, the average rental rate over the last 12 months is 1,326 AED/m²/year (after filtering for residential apartments and reasonable metrics).
Rental rates in Business Bay have shown continuous growth from 2022 to 2024: from 800–900 AED/m²/year to the current 1,200–1,350 AED/m²/year. Prime new developments can achieve higher rents, but the current DLD averages are at this level.
5. Comparison of sales and rentals, ROI calculation and fair value
— Average purchase price (last 12 months, Peninsula One, 1BR): 27,150 AED/m²
— Average purchase price (Business Bay, 1BR): 24,540 AED/m²
— Average rent (Business Bay): 1,326 AED/m²/year
ROI calculation based on area rental levels:
– Rough gross ROI in the building: 1,326 / 27,150 ≈ 4.9% per annum.
– Across Business Bay overall: 1,326 / 24,540 ≈ 5.4% per annum.
Taking into account standard acquisition costs (around 7% — DLD fees, brokerage, registration, Dubai-specific costs), net yields will be lower: approximately 4.6% for the building and 5.0% for the area.
Comparison with a target yield of 7–8%:
– For a 7–8% yield at current average rents, the “investor-fair” price per m² in Business Bay would be 16,500–19,000 AED/m². Current pricing levels in Peninsula One and in the area are significantly above this range, indicating either a fundamental premium or a prioritisation of other factors (liquidity, growth potential, tenant quality, etc.) over current yields.
6. Liquidity and outlook
Peninsula One is a liquid asset that has enjoyed heightened demand during the first years after launch. The premium to the area is explained by the project’s newness, quality and brand recognition. However, at current market prices, achieving a yield above 5% per annum is challenging even when renting “at area rates”.
For an investor targeting a net ROI of 7% or higher at current market rents, it is necessary either to secure a discount to market of around 25–35%, or to focus on long-term capital appreciation and infrastructure expansion. Based on current DLD data, the yield profile corresponds more to a “defensive” investment class rather than high-risk, high-yield strategies.
7. Key takeaways
– Prices for 1-bedroom apartments in Peninsula One are currently noticeably higher than the area average.
– According to the DLD database, new rental contracts in the building itself have not yet been registered on a large scale — most units are likely still in owner-occupation or early investment holding (off-plan effect).
– The Business Bay market is on a positive trajectory, but buying at new-build/premium-complex prices purely for rental income results in moderate yields.
– Yield-focused investors should either look for a discount to market or be prepared to accept lower current yields in anticipation of capital growth.
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