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1. Definition of the area and data structure
Actual location: according to DLD, WEST BAY TOWER is located in Business Bay and is part of the same master project (Business Bay). The level of detail for analysis at the building and district level is confirmed based on transaction data from DLD.
Data volumes: for WEST BAY TOWER, a total of 157 transactions on the primary and secondary apartment market have been recorded, while for Business Bay there are over 57,000 transactions. For rentals, there are no confirmed contracts for this specific building in the DLD database, whereas the district shows more than 81,000 lease contracts, providing a large pool for statistics.
2. Liquidity and demand analysis
WEST BAY TOWER is part of a mature, highly active business district with a large volume of sales and rentals. Although only one studio (0BR) sale has been recorded in this building over the last quarter, overall market liquidity for studios in Business Bay remains extremely high: in each of the last four quarters, there have been around 700–1,100 sales and 700–1,000 new rental contracts for studios.
3. Price and rental dynamics, market level (studios/0BR)
Sales dynamics for a studio apartment in the building:
Only one individual transaction has been recorded (Q3 2024), at a price of 16,456 AED/m². The sample is insufficient for statistically reliable conclusions about pricing for this specific building.
Sales dynamics for studios in Business Bay:
From 2020 to early 2024, the average price per m² showed low volatility in the range of 17,800–26,500 AED/m², with a clear upward trend starting from mid‑2022. In recent quarters, the average price level in the district for studios has been 28,000–29,000 AED/m². Over the last 12 months, the average studio sale price in the district amounted to 27,748 AED/m², which significantly exceeds the level recorded for WEST BAY TOWER (single transaction!).
Studio rental dynamics in the district:
The average rental rate per m² for studios in Business Bay over the last 12 months was 1,591 AED/m² per year, confirmed by stable dynamics over the last four quarters (in the range of 1,500–1,590 AED/m² and above, with a continued gradual increase).
4. ROI (annual yield), fair price for an investor
Since there are no valid rental contracts for WEST BAY TOWER itself, yield calculations are only possible at the district level (Business Bay, studios):
– Gross yield for studios in Business Bay = 1,591 / 27,748 ≈ 5.7% per annum before transaction costs.
– After adjusting for transaction costs (~7%), the approximate net yield = 5.7% / 1.07 ≈ 5.3% per annum.
Fair investment price range corresponding to a 7–8% annual yield in the district:
– With a rental rate of 1,591 AED/m², the fair price range for an investor is from 19,890 AED/m² (8%) to 22,730 AED/m² (7%).
– The current market level is significantly higher: the difference is roughly +20–40% above the investment‑fair benchmark for a 7–8% yield. To reach these target yields, a substantial discount from current prices is required.
5. Conclusions and outlook
WEST BAY TOWER is located in one of the most liquid, developed and popular districts for living and investment in Dubai. Despite the huge market turnover at the district level, studios in this particular building appear in DLD data quite rarely, which may indicate limited supply or specific features of the building’s layout.
Price dynamics in Business Bay in recent years have been stable and show confident growth in both sales prices and rents for studios. However, the current market has moved away from “target yield” benchmarks (actual yields are significantly below 7–8%). For a medium‑term investor focused on high investment returns, the district requires a cautious approach: properties should be considered from the perspective of a discount to market, or only if the goal is long‑term capital appreciation.
If the main goal is rental income or a quick exit, the district remains one of the most liquid, with a broad, solvent tenant base. If an investor is targeting high yield, current market prices require negotiations for a discount.
There is no DLD data on rental contracts specifically in WEST BAY TOWER, so individual estimates of rental rates and yields for this building are not possible.
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