1. Definition of the area and data structure
Actual location: according to DLD, the SOL BAY building is located in Business Bay and is part of the master project of the same name. For further analysis, only filters confirmed for this area were used.
Volume and quality of the database: for SOL BAY, 403 apartment sale transactions have been registered, of which 148 relate to studios (0BR), as well as 850 valid rental contracts (with actual unit sizes and annual rent above AED 1,000). Across Business Bay as a whole, there are more than 48,000 sale transactions and 84,000 rental contracts available, which allows for robust benchmarking and filtering out random outliers.
2. Market activity and liquidity
Over the past 5 years, SOL BAY has gone through a period of active sales: the peak fell on 2021–2022, when more than 100 deals per year were registered; afterwards the pace slowed, which is typical for new projects after handover and the phase of mass official registrations. Rental activity has remained consistently strong: between 100 and 200 contracts per year were concluded in the building, indicating high demand from tenants.
At the Business Bay district level, sales and rental volumes remain consistently high, with no signs of any significant decline or “stagnation” in the building or the area.
3. Dynamics of the average price per square metre
Price per m² in SOL BAY and in the district:
– Over the past 12 months, the average transaction price in SOL BAY amounted to AED 21,460/m² (only apartments with an area of 20–200 m² were considered, excluding price outliers).
– Across Business Bay as a whole, the average price per m² for the same period is AED 25,680/m² — meaning SOL BAY is trading at roughly a 16% discount to the location average.
Dynamics for 2020–2024:
– In SOL BAY, prices remained moderate until mid‑2021 (around AED 12,500/m²), with a noticeable increase in 2022–2024 (locally exceeding AED 20,000–21,000/m² in recent quarters).
– In Business Bay, growth was smoother: from AED 13,000–15,000/m² in 2020 to peaks of AED 25,000–27,000/m² by the end of 2024.
Overall, the building is lagging behind the Business Bay market in terms of price per m², despite its relatively recent handover. This may reflect both the initial pricing strategy and the specific characteristics of the complex.
4. Rental rate analysis
According to DLD, the annual gross rental rate per m² in SOL BAY over the past 12 months is about AED 1,200/m², with the average figure slightly increasing in the last quarters of 2024. In Business Bay, the comparable figure for the year is AED 1,172/m², which confirms that the yield of the building is in line with the district average, and by the end of the period the building even slightly outperforms the district in terms of average rent.
Monitoring over 3–5 years shows a confident increase in rental income: from AED 700–800/m² in 2020–2021 to AED 1,200–1,300/m² in 2024–2025.
5. Comparison of current yields and fair investment price
Yield (ROI):
– Based on the actual average purchase price over the last 12 months (AED 21,460/m²) and the average rent in the building (AED 1,200/m²), the nominal gross yield (ROI_brutto) is around 5.6% per annum.
– For the district: at a purchase price of AED 25,680/m² and rent of AED 1,172/m², the yield is about 4.6%.
– After adjusting for initial costs (DLD fee, agency commission, vacancy — totalling 7–8%), the actual net yield for the building is 5.2–5.3% (ROI_net), and for the district 4.3–4.4%.
Fair price range based on a target yield of 7–8% for an investor:
– For SOL BAY: the price range that would justify such a yield is within AED 15,000–17,100/m² (calculation: average rent 1,200 / 0.08 and 1,200 / 0.07).
– The current average market price is about 25–40% above this level. This means that a purchase targeting a 7–8% annual yield requires a substantial discount to the market or a focus on long‑term capital appreciation.
6. Recommendations on prospects and risks
SOL BAY is a sought‑after rental product with good liquidity, as evidenced by the volume of contracts and its moderate price discount to the district. For an investor focused on passive income, the current net yield levels (5.2–5.3%) are solid and match or exceed the district benchmark.
The 3–5‑year dynamics of prices and rents indicate healthy growth, but significant investment potential has not yet been fully realised: the market price of the building is below the district average, while the yield is not at the top of the segment. To enter the market with a target yield above 7%, one should focus on finding individual deals with a larger discount or consider this building as an asset balancing passive income with the potential for long‑term capital growth.
Overall, the property may be of interest both to landlord‑owners and to buyers wishing to lock in a price below the Business Bay average. However, maximum yields (7–8% and above) are only achievable if purchasing at a price significantly below the current market level.
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