Can you imagine a place where skyscrapers grow out rapidly just like a mushroom would grow right after the rain? In other words, we’re asking you to imagine a place that never sleeps where you’ll find opportunities in every corner for you. Well if you haven’t caught it by now, we’re talking about Dubai’s Commercial hub, the place is filled with a wide range of opportunities for you. This place is situated right in the heart of the Dubai City.
Business Bay occupies a territory of about 5.9 square kilometers and stretches along Dubai Creek. It began to be developed at the beginning of the 2000s and is nowadays a true metropolis in miniature. Here, everything is: from luxurious residential skyscrapers to modern office complexes, from cozy cafes to chic restaurants with views of the bay.
But what makes Business Bay a unique destination for investment? Let’s dig in.
Why Business Bay? 5 Reasons for Investment
- Business Bay is located in the heart of Dubai, a few minutes from the famous Burj Khalifa and Dubai Mall. For this reason, real estate in this area will always be in demand by both local people and visitors.
- Developed Infrastructure The territory has everything needed for comfortable living and working: from supermarkets and fitness centers to schools and medical facilities. And with the opening of the new Dubai Water Canal metro line, the district’s transport accessibility has become even better.
- The overall trend from observation and market analysis is based on the fact that this business bay is growing about an average of 5-7% of real estate price per annum. There may not be a change in the next few years, too.
- In Business Bay, there are many types of real estate for everyone: from small studios to fancy penthouses, and from tiny offices to big business centers.
- Good Investment Environment Dubai is known for rules that promote foreign investment. No tax on rental income from property and no tax on profits from the sale of assets. Does not it sound too attractive?
But let’s go from general words to specific numbers. After all, as people say, seeing is believing.
Investments in Business Bay Numbers and Facts
- Last year, I did over 100 real estate deals in Business Bay, and I can tell you confidently: that this area is a great opportunity for investors. Here are some important reasons that back up my statement:
- Current Cost for Each Square Meter Currently, the average cost for one square meter of homes in Business Bay amounts to around 14,000 AED or approximately 3,800 USD. It compared with the figure amounting to about 12,000 AED last year, 2019. It increased by over 16% in only three years!
- Rental Yield Houses in Business Bay average a yield of 6-8% per annum. Commercial buildings have a yield that can go as high as 9-10%. This is the highest yield recorded in Dubai.
- Construction speed For the last year alone, over 20 new buildings entered their commercial operation in Business Bay. This is not the last story – about 50 other projects are being constructed.
- Occupancy Rate The occupancy rate for homes in Business Bay is around 90%, and for businesses, it’s at 85%. This means your property is not likely to be empty without tenants.
- Growth in Prices In the last 5 years, real estate prices in Business Bay have grown by about 25%. Experts predict this trend to remain in the future. Ah. That’s impressive, isn’t it? Now, see how these numbers become the actual investment chances.
Investment possibilities at Business Bay
It ranges from studios to skyscrapers depending on various investor profiles. For instance, look at the examples below:
Studios and Studio-Apartment Apartments
- Min Investment: 600,000 AED (163,000 USD)
- Rental Return Prospect: 6%-7% per annum
- The prospects for growing value: 5-6% annually.
This is an excellent option for first-time investors. Small apartments and studios are highly in demand by young professionals and couples, making them a very stable source of rental income.
Two and Three-Bedroom Apartments
- Minimum investment: 1,200,000 AED (326,000 USD)
- Expected rental yield: 7-8% per annum
- Potential value growth: 6-7% per year
These apartments are in high demand by families and expatriates with long-term contracts in Dubai, offering good rental returns and steady appreciation.
Penthouses and Luxury Apartments
- Minimum investment: 5,000,000 AED (1,360,000 USD)
- Expected rental yield: 5-6% per annum
- Potential value growth: 8-10% per year
High-end real estate in Business Bay is not only a safe investment but also a luxury asset. These properties are often purchased for personal use or rented out to high-net-worth clients, promising high value growth and prestige.
Commercial Real Estate
- Minimum investment: 2,000,000 AED (544,000 USD)
- Expected rental yield: 8-10% per annum
- Potential value appreciation: 7-9% per year
Business Bay comprises a number of commercial property deals, which include offices, retail properties, and business centers. This high rental yield and potential for long-term value appreciation means it is ideal for an investor looking to earn steady returns.
Right Choice
Investment is not merely a matter of numbers but also understanding the market trend and selecting the right asset. Thus, considering your goals and aligning with the growth potential of each property type can make informed decisions for long-term success in Business Bay.
Our Thoughts!
This district truly represents a unique opportunity for those who want not just to invest money, but to become part of one of the most dynamically developing cities in the world. Business Bay, first of all, does not represent a set of buildings and infrastructure. It represents a living, pulsating organism growing and developing constantly. Thus, every investor has his chance to become part of this exciting process.
