ROI analysis of apartment in Sky Bay Hotel: DLD data and real deals — 20.01.2026

1. Area definition and data structure

Actual location: According to DLD, the SKY BAY HOTEL building belongs to the Business Bay district and the Business Bay master project. All analytical comparisons will therefore be made for this district and master project.

The database records 481 transactions for the SKY BAY HOTEL building and 21 transactions for one-bedroom apartments (1BR). There are no active rental contracts registered either for the building itself or even for the master project, so all rental rate and yield estimates below are given only at the Business Bay district level — across all apartments.

2. Sales dynamics for 1BR in the building and in the district

In the SKY BAY HOTEL building, one-bedroom apartments have been transacted almost every year from 2020 to 2024, but the volume of new sales over the last couple of years has been quite low: only about 1–2 deals per quarter, with intermittent gaps.

The range of average price per square metre according to DLD for 1BR in SKY BAY HOTEL over the last 4 years has changed as follows:
– In 2020: 15,500 – 17,300 AED/m².
– In 2021–2022: around 16,000 – 16,400 AED/m².
– In 2023 the spread is significant: one rare spike up to 21,500, then 16,600, and in early 2024 — 19,700 AED/m².
– Average over the last 12 months: approximately 18,600 AED/m² for the building.

For comparison, the quarterly dynamics for 1BR across Business Bay as a whole:
– 2020: from 13,500 to 16,200 AED/m² with a smooth upward trend.
– 2022–2023: steady growth, reaching 22,000 – 24,000 AED/m² by 2024.
– Average over the last 12 months: approximately 24,150 AED/m² for the district.

Thus, SKY BAY HOTEL 1BR units are currently selling noticeably below the average district price per m² (a discount of around 23%).

3. Rental and yield analysis

For the SKY BAY HOTEL building itself and for the Business Bay master project, DLD has no data on active rental contracts for 1BR — not a single registered rental deal under relevant filters. The only possible benchmark is the average rental rate in Business Bay across all apartments:

– Over the last 12 months, the average residential rental rate in Business Bay is 1,311 AED/m²/year.
– Dynamics: over the past 3–4 years, the district’s rental market has grown sharply. In 2021 the rate was around 700–800 AED/m², and from 2023 it has been steadily above 1,200 AED/m², with local peaks in 2024 at 1,250–1,320 AED/m².

Important caveat: it is not guaranteed that the same (or higher) levels are achievable specifically in SKY BAY HOTEL, as there is no confirmation of concluded rental contracts for this building. All yield estimates below are district-wide benchmarks only.

4. ROI and investment attractiveness

– Roughly based on the latest annual figures: the current purchase price for a 1BR in SKY BAY HOTEL is about 18,600 AED/m², while the district rental rate is 1,311 AED/m².
– Gross yield for Business Bay (theoretical ROI) — 1,311 / 24,150 ≈ 5.4% per annum;
– Gross yield for SKY BAY HOTEL (using the building’s price and the district rental benchmark) — 1,311 / 18,600 ≈ 7.1% per annum.

However, there is no actual rental data for the building itself — rental rates/demand here may be significantly lower or higher. A direct ROI calculation for SKY BAY HOTEL is not possible based on DLD contracts.

Adjusting to a potential “net” yield after transaction costs (7–8% total entry costs) gives an indicative 6.5–6.7% per annum for the building (modelled), or 5% for the district. This is below the “target range” for most investors if buying at the average district price, and only close to it when buying at the average SKY BAY HOTEL price.

Fair “investment” value per m² for a 7–8% ROI (based on district rental levels):
– 16,390 – 18,730 AED/m². This corresponds to the current deal level in the building itself and is significantly below the district price.

5. Market and liquidity

– Liquidity: 1BR transactions in SKY BAY HOTEL are irregular and low in volume — 1–3 sales per year. At the district level the market is active: Business Bay records tens of thousands of rental contracts and strong demand for both rentals and resales.
– The cost of 1BR in SKY BAY HOTEL is 23% below the Business Bay average, reflecting weaker demand, the specifics of the building (hotel apartments), or lower overall attractiveness.
– Outlook: if strong demand in Business Bay continues, the price gap with the district could narrow, provided rental rates in the building are confirmed at district levels.

Conclusion for an investor

SKY BAY HOTEL is potentially attractive for yield-focused buyers, as the gap between district rental levels and purchase price leads to a modelled ROI of around 7%. However, the absence of actual rental deals in the building does not allow one to reliably confirm the achievability of such returns — there are specific risks related to target audience, niche positioning, and occupancy.

Business Bay as a whole shows strong growth in both rental rates and prices, but entering the market “at district level” already yields below 5.5%, which falls outside the “fair” investment range, and only approaches it when buying at SKY BAY HOTEL price levels.