1. Definition of the district and data structure
Actual location: The Peninsula One building is confirmed in the DLD database as belonging to the Business Bay district and the Business Bay master project. There is a significant number of studio (0BR) units for this building in the sales and rental transaction database – this type is fully identified as “studio” according to DLD classification.
Available data structure:
– Sales: 980 transactions, with a stable flow of studio (0BR) sales since 2022.
– Rentals: 187 rental contracts for Peninsula One, the majority starting in 2025–2026, meaning the building has only just started operating.
2. Volume and dynamics of transactions in the building
A high level of liquidity for studios is recorded:
– In 2022 the main wave of transactions took place (project launch – more than 150 sales per quarter).
– In 2023–2024 studio transactions continued (typically 10–20 sales per quarter), with a total of 47 sales over 12 months, indicating a market with good monthly liquidity even after the main launch phase.
3. Price dynamics per square metre (Peninsula One, studios)
The average price per square metre for studios by quarter has grown significantly:
– 2022: 19,800–22,800 AED/m²
– 2023: 22,500–24,400 AED/m²
– 2024 (last 4 quarters): increase to 25,000–29,000 AED/m²
– Over the last 12 months in the building, the average studio price is 29,416 AED/m² (based on 47 transactions).
Post-handover prices have risen noticeably compared to launch levels, confirming investor demand for this new development.
4. Comparison with Business Bay district (studios)
– The average price per m² for studios across Business Bay over the last 12 months is 28,060 AED (based on 4,325 transactions).
– The district trend is in line with the building’s trend, but the level of Peninsula One is 5% above the district average – positioning above the market mean.
– Aggregate values for 2019–2024 across the district: a smooth appreciation of studios from 18,000–22,000 to 26,000–29,000 AED/m².
5. Analysis of the rental market in Peninsula One
– As of late 2025–early 2026, the first studio rental contracts in the building have appeared – a total of 180+ are recorded, but most relate to future/current periods.
– The average annual studio rent over the past 12 months (based on 71 contracts) is 2,497 AED/m².
– In quarterly dynamics: 2,150–2,580 AED/m², which is significantly above the district average.
6. Business Bay rental market — benchmark
– For the same period, the average annual rent for studios in Business Bay is 1,616 AED/m² (3,500+ contracts).
– Rental rates in the district have grown from 2021 (900–1,000 AED/m²) to 2024 (1,500–1,600 AED/m²).
– Peninsula One is professionally leased at a premium to the market: +55% versus the average studio rate in the district.
7. Comparison of current indicators, ROI and the “fair price” range for an investor
– Current price per m² in the building: 29,416 AED/m²
– Current rent: 2,497 AED/m²/year
– Calculated gross yield (brutto ROI) for the building: 8.5%. For comparison, the district average is around 5.8%.
– Adjusting for typical entry costs (about 7% upfront): net ROI for the building is estimated at 7.9–8.0%.
– The “fair investment price range” for buyers targeting a 7–8% ROI based on current rents in the building: 2,497 / 0.08 = 31,213 AED/m² at the upper bound, 2,497 / 0.07 = 35,671 AED/m² at the lower bound. The current price is already slightly below the “market” investment value range for this level of yield (i.e. achieving 7–8% per annum on these figures is still feasible).
– For Business Bay as a whole: the fair investment price range for a 7–8% ROI is 20,200–23,100 AED/m²; current market levels in Business Bay (28,060 AED/m²) imply a yield below 6%.
8. Conclusions on liquidity and outlook
– Peninsula One is a top-tier new development in Business Bay with a confirmed rental and price premium versus the district average.
– In terms of both sales and rentals, the asset is liquid; demand for purchase and for rent is consistently high, as confirmed by DLD market data.
– Price growth of 30–40% over 3 years and strong activity in the secondary market show that the asset is in demand both within the district and beyond, while rental yields (8%+) ensure continued interest from new investors.
– In Business Bay overall, rental yields for studios are average or below average (a “high-priced” district). Peninsula One is one of the leaders in the premium segment and can be considered a “flagship” product for investment-focused buyers.
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