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1. Definition of the area and data structure
Actual location: According to DLD, The Quayside building is located in Business Bay, master project Business Bay. All quantitative assessments and benchmarks in this report are based on this area.
There is sufficient transaction and rental data for studios in The Quayside in the database to analyze sales; however, there is no rental data for the building and project itself — the model will have to rely on statistics for the entire Business Bay area.
2. Sales turnover and liquidity
In The Quayside (for studios), transactions have been recorded since the beginning of 2024. Quarterly transaction volume is 3–5 deals per quarter, which is considered a normal level of liquidity for a new building. A total of 16 studio transactions have been recorded since the beginning of 2024.
At the Business Bay area level, the studio market is historically well developed: according to DLD, over the past four years alone more than 700–900 studio transactions per quarter have been concluded in the area.
3. Sales price dynamics and levels
For The Quayside:
– In 2024, the average price per m² for studios ranged from 26,860 to 27,960 AED/m², with a 12‑month average of around 27,313 AED/m².
– A slight increase in the price per m² is observed towards the end of 2024.
For Business Bay:
– Historically, the price range for studios has been wider: from 18,000 to 29,000 AED/m² (data since 2020).
– Over the last 12 months, the average studio sale price in the area has been about 27,877 AED/m².
– The cost of a studio in The Quayside is comparable to the area average and does not show a premium or noticeable discount.
4. Rental turnover and levels (by area)
No direct rental data for studios in The Quayside was found in DLD, so the analysis uses the Business Bay area level. This is a reliable base: more than 17,000 studio rental contracts have been signed over the past four years alone. Each quarter, 700–1,100 new contracts are concluded, indicating high liquidity and strong rental demand in Business Bay.
Dynamics of the average rental rate per m² for studios in the area:
– In 2020–2021, average studio rents were at 860–1,050 AED/m²/year.
– By the end of 2023, they had risen to 1,500–1,580 AED/m²/year.
– Over the last 12 months, the average studio rate has been 1,590 AED/m²/year.
5. Current yield level and fair price
Based on current DLD levels:
– Average purchase price of a studio in The Quayside over the last 12 months: about 27,313 AED/m².
– Market rental rate for a studio in the area: approximately 1,590 AED/m²/year.
Indicative gross yield (brutto ROI) when buying at the building’s average price and renting at the area’s average rate:
1,590 / 27,313 ≈ 5.8% per annum.
Taking into account typical acquisition and maintenance costs (7–8% of the transaction amount for entry, commissions, etc.), the expected net yield (net ROI) decreases to 5.4–5.5%.
Estimating a notional “fair” price range for an investor targeting a net 7–8% per annum:
– Share of market rent: 1,590 / 0.08 = 19,875 AED/m² (price for 8% ROI)
– 1,590 / 0.07 = 22,714 AED/m² (price for 7% ROI)
The market price of The Quayside is above this “investor” zone, which is typical for new quality assets and reflects the general trend of yield compression as prices rise.
6. Conclusions on liquidity and outlook
– The Quayside is integrated into the Business Bay market, shows solid demand in the studio segment, but does not demonstrate a sharp premium to the area.
– Against the backdrop of overall growth in rental demand and prices in Business Bay, studio apartments maintain high liquidity and strong rental appeal.
– Current market prices are significantly above the “fair” price threshold for a 7–8% annual yield — this is standard for new projects in growth-driver locations.
– In the short term (3–5 years), price and rental dynamics look stable; yields for investors in the Business Bay studio segment are expected to remain in the 5–6% brutto range when buying at current prices, slightly lower after factoring in initial costs.
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