1. Definition of the area and data structure
Actual location: according to DLD, The Cosmopolitan is located in Business Bay, with the master project also Business Bay.
2. Volume and structure of transactions
In recent years, there has been a notable number of sales of 1-bedroom apartments in the building — a total of 52 transactions since 2020 (based only on the filter rooms_en = ‘1 b/r’). Over the last 12 months, 11 transactions have been registered under this filter.
Overall, the sample for 1-bedroom apartments in Business Bay is very large (tens of thousands of sales and rental contracts in recent years), which provides a representative basis for comparison.
3. Price dynamics per m² and current level
Dynamics of the average price per square meter for 1-bedroom apartments in The Cosmopolitan according to DLD:
– The current average price per m² over the last 12 months is about 14,113 AED/m² (11 transactions).
– Over the last 3 years there has been clear growth: from 8,500 AED/m² (2021) to 13,000–15,000 AED/m² (2024–2025).
– For comparison: across Business Bay as a whole, similar apartments over the last 12 months were sold at an average of 24,461 AED/m² (4,820 transactions).
Thus, The Cosmopolitan is significantly cheaper than the average market level in Business Bay: the discount to the area exceeds 40%.
4. Rental dynamics per m² and current level
For rentals (data for the entire project The Cosmopolitan, not only 1BR):
– The average annual rent per m² over the last 12 months in the building is 1,343 AED/m² (179 contracts; all residential units, not only 1BR, due to the absence of contracts strictly for 1BR over the year).
– Across Business Bay the average rent is 1,330 AED/m² (15,407 contracts over 12 months).
Rental growth is clearly visible:
– In 2021, rents were in the range of 770–870 AED/m².
– In 2022–2023 — on average 900–1,200 AED/m².
– Since 2024, rents have been consistently at 1,200–1,380 AED/m².
The level in the building fully corresponds to the average market rental rate in Business Bay.
5. Comparison and yield calculation (ROI)
Current figures:
– Average price per m² in the building (1-bedroom, last 12 months): 14,113 AED/m².
– Average rent per m² in the building (all apartments, last 12 months): 1,343 AED/m².
Estimated yield:
– Indicative gross ROI for the building: 1,343 / 14,113 ≈ 9.5% per annum (actual DLD data for the last 12 months).
– For Business Bay as a whole, gross ROI: 1,330 / 24,461 ≈ 5.4% per annum.
Taking into account all entry transaction costs (DLD fee, broker, registration, vacancy, etc. — about 7% on top of the purchase price), the actual net ROI for an investor in The Cosmopolitan can be estimated at around 8.8–8.9% per annum.
6. Comparison of fair ranges (implied price vs market)
If the investor’s target yield is 7–8% per annum, the fair market price range for the building (given the average rent of 1,343 AED/m²) is:
– For 8%: 1,343 / 0.08 = 16,788 AED/m².
– For 7%: 1,343 / 0.07 = 19,186 AED/m².
The actual average transaction (14,113 AED/m²) is significantly below the fair range for a 7–8% annual target. In other words, current owners are selling at a price that allows buyers to achieve a yield noticeably above a typical investment target. By comparison, at the overall Business Bay level such a yield is not achievable (market prices are higher, ROI is clearly below 7%).
7. Liquidity and outlook
– The building records stable sales every year (3–18 transactions per year for 1-bedroom units).
– For rentals, there is a very large sample of contracts (179 over 12 months), indicating steady demand.
– The basic discount to the area clearly reflects some specifics of the building (likely age, finishing quality, views), but the yield for buyers is currently among the highest in the Business Bay market.
Conclusion for an investor: The Cosmopolitan represents a liquid segment of 1-bedroom apartments with high yields and a relatively low entry price compared to the area. There is still upside potential driven by rental growth and general alignment with the wider Business Bay market, but one should keep in mind the potentially limited upside versus newer and more premium projects in Business Bay.
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