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1. Definition of the area and data structure
Actual location: Peninsula One is located in Business Bay, with the master project also Business Bay. This is confirmed by DLD transaction records filtered by building. For the analysis, only transactions where the unit type is one-bedroom (1 b/r) were used.
2. Transaction volume and liquidity of the building and the area
In total, 333 transactions for 1BR units in Peninsula One have been registered. The bulk of them fell on 2022 (192 transactions), after which the number declines: 33 transactions in 2023, 38 in 2024, and 64 in 2025 (these may include registration dates of off-plan contracts for future years). This indicates a mass-sales phase at project launch followed by a slowdown in liquidity as the inventory is sold out. Across Business Bay, the apartment market consistently shows a high transaction volume, which provides a solid statistical base for comparative analysis.
3. Price per m² dynamics for the building and the area
For one-bedroom units in Peninsula One, the average price per sq.m has been growing dynamically from 2022 to date:
– In 2022 the average price per sq.m fluctuated in the range of 19,500–22,500 AED; in 2023 it was already 22,400–24,400 AED; in 2024 it reached 25,200–26,600 AED; and pre-contracts for 2025 (off-plan or finalization) show a range of 24,500–28,400 AED/m².
– In Business Bay over the same period, the average price per sq.m for apartments from 2022–2024 increased from ~17,000 to ~25,000 AED, which is comparable to the dynamics of the building, but Peninsula One is noticeably more expensive than the typical market level of the area (a 5–10% premium to the area over the last 12 months).
Average price per sq.m in Peninsula One over the last 12 months: 27,145 AED/m².
Area average (Business Bay) over this period: 25,722 AED/m².
4. Rental statistics and dynamics
For Peninsula One itself and for the Business Bay master project, DLD records show 0 active rental contracts for 1BR units. This may be due to the recent completion of the building, a predominance of investor deals where units are not officially leased, or a lag in DLD/Ejari system synchronization. Therefore, we have to rely solely on aggregated data for Business Bay.
Across the entire Business Bay area, tens of thousands of residential apartment rental contracts have been recorded. The average annual rent level for all residential apartments in Business Bay over the last 12 months is 1,324 AED/m²/year.
Rental rate dynamics indicate strong growth in 2023–2024: from ~1,000 AED/m² a year ago to 1,200–1,300 AED/m² in recent quarters.
There is no rental data directly for Peninsula One or even for the master project. All calculations below are provided only at the area level (Business Bay).
5. ROI and fair price range
A direct payback (ROI) calculation for the building is impossible due to the lack of rental data for the property. For Business Bay business-class stock:
– Gross ROI for the area: 1,324 / 25,722 ≈ 5.1% per annum.
– Approximate net yield (taking into account all typical costs and entry expenses of 7–8%): ~4.7–4.8% per annum.
– To achieve a yield of 7–8% per annum, the fair price range for an investor would be: 1,324 / 0.08 = 16,550 AED/m² (for 8%) and 1,324 / 0.07 = 18,914 AED/m² (for 7%), i.e. a fair range of 16,550–18,900 AED/m².
The actual average transaction price in Peninsula One is about 27,000 AED/m², which exceeds this range by 40%+. Even allowing for premiums for a new project and its quality level, the current price does not correspond to a 7–8% annual yield based on DLD rental rates. A similar situation is typical for new towers in Business Bay — investment purchases here are usually made with a focus on future capital appreciation rather than yields above 6%.
6. Final conclusion on investment prospects
Peninsula One is a new premium project. It significantly outperforms the area average both in transaction prices and in the absence of real (official) rental contracts at the time of analysis. Liquidity is high and sales volumes are substantial. However, for an investor targeting a 7–8% annual yield, purchasing at the current price levels in the building and in Business Bay does not allow achieving the target returns based on DLD data. The real payback of such units is 4.5–5% per annum, excluding capital growth. Speculative potential (through further price increases) is possible but not supported by transaction or rental statistics. To maintain high liquidity, it is important to monitor the sustainability of rental demand over the coming years.
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