1. Definition of the area and data structure
Actual location: SLS DUBAI is located in Business Bay (according to DLD). For the analysis, all sales and rental contracts were used with filters by building name “SLS DUBAI” and apartment type “studio” (0BR).
In the DLD database we found:
– 1,111 sales (all types) for SLS DUBAI,
– 974 rental contracts for this project,
– A sufficiently large comparable sample for Business Bay to allow for robust benchmarking.
2. Transaction volume and liquidity
Studio transactions in SLS DUBAI have been recorded every quarter since 2020, with a moderate sales volume of 4–17 deals per quarter (both at handover stage and afterwards). This indicates substantial liquidity: selling or buying a studio to a real investor is not problematic.
On the rental side, dozens of studio contracts in this building are registered every year, without significant “gaps” by quarter. Supply and demand volumes can be considered stable.
3. Price dynamics and level for 0BR/studios
Average purchase price per 1 m² (DLD, only transactions over the last 12 months, valid areas 20–100 m²):
– For SLS DUBAI: about 20,930 AED/m² (15 transactions).
– For Business Bay: about 28,140 AED/m² (4,459 transactions).
This means studios in SLS DUBAI trade at a discount of roughly 25% to the Business Bay average (the actual average price level per DLD).
Price dynamics for SLS DUBAI have been volatile: after peaking in 2022 (up to 34,000–37,000 AED/m²), the average level declined to the current 21,000 AED/m². The wider area, by contrast, has been more stable for studios since 2022 — around 25,000–29,000 AED/m². Over the last year there has been no significant underperformance of the building versus the area — the gap has remained in the 20–25% range.
4. Rental dynamics and levels
Average annual rent per m² (DLD data for the last 12 months):
– SLS DUBAI (studios): 1,623 AED/m² (34 contracts).
– Business Bay (studios): 1,615 AED/m² (3,832 contracts).
The rental stream for SLS DUBAI fully matches the area average. The building clearly does not lag in attractiveness for tenants and owners.
Rental dynamics for both the building and the area are upward: in 2021 levels were 1,200–1,400 AED/m², in 2023 they crossed 1,500, and in 2024 they stabilized above 1,600 AED/m².
5. Yield comparison and ROI calculation
Gross ROI for studios, based on the last 12 months:
– For SLS DUBAI: 1,623 / 20,930 ≈ 7.75%
– For Business Bay: 1,615 / 28,140 ≈ 5.74%
SLS DUBAI delivers a higher entry yield compared with the area average, driven by a lower purchase price at comparable rental rates.
Taking into account standard transaction costs (around 7–8% of the purchase price), net yield (“ROI_net”) is estimated at:
– For SLS DUBAI: about 7.2–7.25% / 1.07–1.08 ≈ 7.1–7.2%
– For the area: 5.3–5.4%
For studios in SLS DUBAI, the fair investment price range at a target yield of 7–8% per annum is 20,300–23,200 AED/m² (calculated from the actual DLD rental rate for the last 12 months). The market price per DLD (around 21,000) falls within this range, meaning the investor already receives a “fair” market-level yield above the target benchmark.
6. Conclusions and outlook
Liquidity in both the building and the area is high; the studio market is saturated with sales and rentals, with no sharp downturns observed. Price and rental dynamics show a rapid adjustment to overall market sentiment, without critical lagging. Over a 3–5 year horizon, assuming current market trends persist, studios in SLS DUBAI look more attractive than the market average in terms of yield and potentially for buyers focused on premium product (thanks to the level of service and the building’s relative newness).
At the moment, a net yield of 7% per annum (and higher) is achievable, there is no discount to the average market price per m², and a certain premium is even possible if rental demand continues to grow.
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