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Landlords must have tenants who pay rent on time and are cooperative. Landlords attract tenants to their apartments by highlighting community attractions, amenities, and apartment features. Landlords should have no problem attracting tenants if they market their apartments correctly.

However, landlords must profit from their apartments. Landlords profit from their apartments by collecting rent on timerepaying mortgages, and making sound investments.

Landlords have an advantage when leasing off plan projects  in Dubai, because the apartments are convenient for workers. Their jobs could be only steps away from their apartment or sometimes in the same complex. This advantage allows landlords to charge more rent than they would for similar properties elsewhere.

Here is our guide to the off-plan projects of Business Bay.

Property Prices

Before making a property purchase, the landlords should know the price of their investment in Business Bay. The off-plan projects in Business Bay are the Vera Residences, Peninsula One, The OPUS, and Peninsula Three. Peninsula One has two studio apartments for sale, which cost between 820,000 AED and 830,000 AED. The only apartment in Peninsula Three, a one-bedroom apartment, costs 1,971,000 AED. There is only one apartment for sale in The OPUS, which is a one-bedroom apartment that costs 3,000,000 AED. Finally, Vera Residences has a single one-bedroom apartment that costs 800,000.

Rent

It is challenging to calibrate the rent with the other apartments in most communities. The first step is to see if the off-plan projects already have apartments for rent. In Business Bay, none of the off-plan projects already have apartments for rent. Next, look at rent figures in the community. By using this information, landlords could develop this rent table:

Type of Apartment Location Expected Rent (Yearly)
Studio Peninsula One 42,000 AED – 105,000 AED
One-Bedroom Peninsula Three 44,999 AED – 200,000 AED
One-Bedroom The OPUS 44,999 AED – 200,000 AED
One-Bedroom Vera Residences 44,999 AED – 200,000 AED

There is a significant difference in expected rent at the high and low ends. To narrow the range, landlords could compare rent based on apartment size. This calculation results in the following table:

Type of Apartment (Number in Business Bay for Rent) Location Area (sq. ft) Expected Rent (Annually)
Studio (4) Peninsula One 410 48,000 AED – 70,000 AED
Studio (4) Peninsula One 410 48,000 AED – 70,000 AED
One-Bedroom (1) Peninsula Three 822 59,998 AED
One-Bedroom (2) The OPUS 842 57,990 AED – 80,000 AED
One-Bedroom (1) Vera Residences 475 60,000 AED

By using apartment size, the rent becomes more specific. The rent in Peninsula One, using four similar apartments, narrows the difference from 63,000 AED to 22,000 AED. In Peninsula Three, it narrows the rent down to a specific price (59,998 AED) based on the one similar apartment in Business Bay. It decreases the difference again in The OPUS from 145,001 AED to 22,010 AED. Finally, the rent in the Vera Residences narrows down to a specific price (60,000 AED) based on the one similar apartment for rent in Business Bay. Using the final high and low numbers, the expected rent for a studio or a one-bedroom off-plan apartment in Business Bay is between 48,000 and 70,000 AED for a studio apartment and 57,990 AED to 80,000 AED for a one-bedroom apartment.

Mortgage Repayment and Other Information

Now that landlords have their rent and price tables, they should look at payment plans and other information. Payment plans are structured payment schedules used to repay mortgages to the realtor after landlords purchase the off-plan apartments of their choosing.

Here are some of the payment plans available at Peninsula One and Three, The OPUS, and the Vera Residences:

  • Both off-plan studio apartments in Peninsula One have 30/70 payment plans, in which 30% is due on purchase, and the other 70% is due on handover.
  • Realtors do not list payment plans for Peninsula Three.
  • Realtors do not list payment plans for The OPUS.
  • Realtors do not list payment plans for the Vera Residences.

Finally, here is some other relevant information:

  • Realtors at Peninsula One predict 8% returns on the off-plan studio apartments in Peninsula One.
  • Handover of the off-plan studio apartments at Peninsula One will be in the 4th quarter of 2024.
  • The off-plan one-bedroom apartment in The OPUS has a completion date of the 1st quarter of 2022.

Conclusion

Realtors in Business Bay provide information on property costs, rent, and payment plans. Using this information, they can decide whether to purchase properties in Business Bay. The key is to look at the data and determine if investing in Business Bay is worth the risk.

If the risk seems right, purchase properties in Business Bay before someone else does.