Dubai Property Market
- 59.7% YoY
Property sale volume
- 79.1% YoY
Property sale value (AED)
One of the most popular real estate investment locations
Over the course of the last few years, the Business Bay property market has outperformed nearly all others in the emirate – combining strong capital growth and sustainable high rental yields.
As such, investor demand for property has also been high. Between 2019 and 2022, more properties were sold in Business Bay than in nearly any other sub-market in Dubai.
The area continues to be popular with ex-pats, families, investors and developers. More properties are set to be released into the market this year, but demand remains strong, and forecasts predict above-market performance and sustained returns in the short, mid and longer term.
Available
Properties
- Abu Dhabi
- Ajmal Makan City
- Al Barari
- Al Habtoor City
- Al Sufouh
- Arabian Ranches
- Arjan
- Business Bay
- City of Arabia
- DAMAC Hills
- DAMAC Lagoons
- Downtown Dubai
- Dubai
- Dubai Creekside
- Dubai Harbour
- Dubai Healthcare City
- Dubai Hills
- Dubai Hills Estate
- Dubai Islands
- Dubai Land
- Dubai Maritime City
- Dubai South
- Dubai Sports City
- Dubai Studio City
- Dubailand
- Emaar Beachfront
- Featured
- IMPZ
- Jebel Ali
- Jumeirah Beach Residence
- Jumeirah Golf Estates
- Jumeirah Lake Towers
- Jumeirah Village Circle
- Jumeirah Village Triangle
- La Mer
- Madinat Jumeirah Living
- MBR City
- Meydan
- Mudon
- Nad Al Sheba
- Oman
- Palm Jumeirah
- Ras Al Khaimah
- Serena
- Sharjah
- Sobha Hartland
- South Bay
- The Valley
- Town Square
- Wadi Al Safa 2
- Yas Island
Business Bay's Property Market Performance
Business Bay statistics for completed 1-bedroom properties:
- The average asking sales price in Business Bay in March 2023:1.5m AED
- The average transaction sales price in Business Bay in March 2023: 1.2m AED
- The average asking sales price in Business Bay in March 2023 per sq ft: 1,600 AED
- The average transaction sales price in Business Bay in March 2023 per sq ft: 1,400 AED
Asking prices in Business Bay now are much higher than a few years ago. Back in 2018, many investors recognised the opportunity: a fantastic location next to Downtown, an emergent reputation as a business and hospitality hub, and crucially, great value. Consequently, in the first half of 2018, Business Bay recorded the highest volume of property transactions in Dubai, almost 2,000, in purchases worth over 4bn AED.
That said, the area remains good value and although some other submarkets are now outperforming it slightly, it is still a strong investment option for new and existing investors.
Average capital appreciation in Business Bay over the past 12 months
- Business Bay overall: 9.51% capital appreciation
- Business Bay studio property: -3.17% capital appreciation
- Business Bay 1-bed property: 3.43% capital appreciation
- Business Bay 2-bed property: 6.36% capital appreciation
- Business Bay 3-bed property: 5.03% capital appreciation
How to choose a property investment in Business Bay
Business Bay offers a large array of property types. There are apartment complexes with everything from studios to 5 or 6-bedroom penthouses.
There is also the prospect of acquiring one of the more unique types of property available to the Dubai real estate investor: Marasi floating villas. These are safely anchored along the Dubai Canal and look like freely floating houses. They are particularly popular with yacht enthusiasts and mariners.
There is an emergent trend of Business Bay getting bigger. This means that the market is shifting away from studios and one-bed apartments to larger properties. This is reflected in the huge average transaction value rise in Business Bay over the past 12 months – yes, there has been substantial capital growth, but the types of properties sold in high volumes have been 2 and 3-bed apartments.
Business Bay rental market
Business Bay, like Dubai Marina, is a submarket in which rental yields can really add to an investor’s total ROI.
Although Dubai real estate is historically associated with some of the highest annual capital growth in the world, yields of 6-8% – like those found in Business Bay – are hard to beat, particularly when it comes to prime property markets.
As the name suggests Business Bay is a commercial hub that focuses its provision on the needs of the working professional.
However, unlike Dubai Marina, its appeal as a place to live also extends to families, immediately doubling the persona of tenant available to investors with property in Business Bay.
Starting rental values for Business Bay property
- Average rental price for Business Bay properties March 2023: 90,000 AED
- Average gross yield for Business Bay properties March 2023: 6.1%
Business Bay real estate outlook
Over the past 12 months, demand for Business Bay has only heightened, as the Dubai Market bounced back from the pandemic.
The volume of transactions in the area increased by 35% to over 2,500.
Despite this, growth is forecast to continue and demand is set to rise further. The recently announced Dubai 2040 Master Urban Plan singled out Busines Bay as the focus of all the emirate’s financial sector growth. Consequently, the workforce will rise accordingly and the demand for rental property – and investment property – should ensure that rentals and transaction values continue to rise.
Business Bay location and lifestyle
Like with much of Dubai property investment, it is hard to separate the appeal of Dubai’s lifestyle from the ROI; the lifestyle drives the demand for property and tenancy.
Business Bay was master planned and launched just after the turn of the century. Now two decades on, the area’s potential is only just beginning to be realised and it remains one of Dubai’s most exciting projects.
Once voted as one of the world’s coolest neighbourhoods, Business Bay retains its own character – with professional precincts and waterside charm – but it is also strategically located and very close to some of Dubai’s other major amenities and attractions. It is also located less than 10 minutes’ drive from Dubai International.
What is the mix of off-plan and completed properties in Business Bay?
Business Bay’s property market is predominately completed properties, but it is more equally weighted than many real estate markets in Dubai. Currently, the number of available off-plan properties is around 20,000, representing just over a third of the market.
Is Business Bay just business and commerce?
No. Not at all. Part of Business Bay’s appeal is that it mixes work and residential so well.
Only 20% of the real estate there is purely devoted to commercial purposes. The same proportion is devoted to purely residential purposes.
The remaining 60% is actually master-planned mixed-use space that supports the community and business interests of the area.
What investment budget do you need to buy property in Business Bay?
Completed studio apartments in Business Bay have been acquired from as little as 100,000 AED in the past 12 months, but that is an extreme rarity and may not have been a successful investment.
On average, investors are currently acquiring business bay property for around 1,800 AED per sq. ft.
