ROI analysis of apartment in Sky Bay Hotel: DLD data and real deals — 11.01.2026

1. Definition of the area and data structure

Actual location: Sky Bay Hotel is located in Business Bay according to official DLD data. The building is registered as SKY BAY HOTEL within the Business Bay master project.

For two-bedroom apartments (2BR) in this building there are no registered sales transactions or lease contracts in the DLD database. Further analysis is therefore carried out at the Business Bay district level (residential apartments, category “Flat”), since there is no data either for the building itself or for this specific unit type.

2. Liquidity and number of transactions

Business Bay is one of the most liquid districts in Dubai. Over the past four years, the annual volume of transactions with residential apartments has reached tens of thousands. In just the last 12 months, more than 8,000 sales transactions and around 12,000 new lease contracts have been registered. The number of deals remains consistently high, with peaks typically observed in the first and third quarters of each year.

3. Price and rental dynamics over 3–5 years

The average purchase price per square metre in Business Bay over the last 12 months (with filters applied for unit size and realistic pricing) is around 25,400 AED/m², which is approximately 34% higher than two years ago.

Dynamics since 2022:
– Q1 2022: ~17,100 AED/m²
– Q1 2023: ~21,000 AED/m²
– Q1 2024: ~22,990 AED/m²
– Latest calculated year: ~25,357 AED/m² (upward trend persists)

Rental rates per m² per year in Business Bay have also been growing steadily:
– Q2 2022: ~830 AED/m²/year
– Q4 2022: ~970 AED/m²/year
– Q1 2024: ~1,230 AED/m²/year
– Latest calculated year: ~1,336 AED/m²/year

Rental growth over 2 years exceeds 50%, significantly outpacing the broader market.

4. Comparison with the area

Sky Bay Hotel (2BR): no transaction or rental data is available. For comparative purposes, we use the district averages for Business Bay.
– Average sale price per m² (last 12 months): ~25,357 AED
– Average annual rent per m² (last 12 months): ~1,336 AED

The building does not show a separate trend or distinct price corridor due to the absence of transactions in recent years, but the surrounding district demonstrates steady capital appreciation and strong rental activity.

5. ROI and “fair” investment price

At the Business Bay level for a typical apartment (district portfolio):
– Rough, simplified yield (ROI, without adjustments): ~5.3% per annum (1,336 / 25,357)
– Adjustment for transactional and organisational costs (7–8% on entry price):
Indicative net ROI will be in the range of 4.9–5.0% per annum.
– To achieve a target yield of 7–8% per annum at the current rental level, the “fair” investment purchase price would be in the range of 16,700–19,100 AED/m² (calculation: 1,336 / 0.08 and 1,336 / 0.07).
– The actual average market purchase price is noticeably above this threshold, which is typical for districts with strong rental demand and solid capital growth: investor yields here are slightly below the Dubai average, but liquidity, growth potential and the quality of the rental stream are higher.

6. General conclusions on the property and the area

Sky Bay Hotel currently does not show a distinct market track record, as there are no sales or rental deals recorded in DLD data. Nevertheless, the property is located in one of the most dynamic and in-demand districts of the city. Business Bay as a whole is characterised by:
– very high liquidity in both sales and rentals;
– sustained growth in prices and rental rates (capital appreciation of more than 30% over 2 years on sales, with rents growing even faster);
– for an investor targeting a district-level yield of 7–8% per annum, achieving this will require a 20–35% discount to current market value — such conditions are typically attainable either during a market correction, or when acquiring “bulk” lots or underperforming assets (for example, hotel apartments with low occupancy).

In the long term, the district remains highly attractive for investors, especially those focused on capital appreciation and stable rental income, although yields are lower than in newer and less mature Dubai locations.