Please note: Business Bay is one of the 60 major communities in freehold Dubai where Lookup.ae reports quarterly prices. We track performance of studio, 1 and 2 bedroom apartments in Business Bay and this data can be viewed in more detail under this section's Transaction Prices and Historic Data sections. The price data in this section does not include Executive Towers, a major project also within Business Bay but reported separately because of its different characteristics.
Overview & History
The area of Business Bay is approximately 64 million sq. ft. and it stretches from Sheikh Zayed Road upto Al Khail Road. The Business Bay master-plan has an allocation of up-to 250 building plots.
In 2005, the master developer, Dubai Properties Group started selling plots in Business Bay to private developers for development. Plots in Business Bay have different uses: residential, commercial, hospitality and mixed-use. Certain plots were held by Dubai Properties Group where they launched their own projects such as Executive Towers and Vision Tower.
The vision of Business Bay is to be the Central Business District of Dubai. The master-developer, Dubai Properties, which is a part of Dubai Holding - sold plots to private investors and developers who in turn have developed and continue to build various types of projects.
When the Global financial crisis hit Dubai in late 2008, hardly any project in Business Bay was yet to be delivered. Many projects were in advanced stages of construction, while others had already launched but were yet to get off-ground. Many ambitious developments were eventually shelved and construction on existing developments slowed down tremendously.
In late 2009 and 2010, we began seeing the first projects handing over in Business Bay, this included The One by Omniyat, Silver Tower and the Executive Towers. The delivery of Executive Towers in 2010 helped revitalize the area and through 2011 and 2012, we saw a number of delivered projects.
The real estate market in Dubai started reviving in a major way in 2012. By this time, many investors had entered the market to propel stalled projects. Many projects which were previously on-hold received capital injections and were re-launched with various types of prices and payment plans.
Many new developments contain hotel serviced apartments, which in 2013 and 2014 were a hot segment of the property market.
Delivery of Projects
Deliveries in 2009 & 2010: Bayswater, Executive Towers, The Citadel, XL Tower,
Deliveries in 2011: Manara Tower, Al Shafar Residence, Blue Bay Tower, Business Bay Office Tower, Capital Golden Tower, Damac Business Tower, Empire Heights, Grosvenor Tower, Hamilton Residency, Mayfair Residence, Mayfair Tower, Ontario Tower, One Business Bay, O14 Tower, Silver Tower, Scala Tower, The Metropolis, The Prism, Vision Tower, Windsor Manor,
Deliveries in 2012: Churchill Executive, Churchill Residency, Clayton Residency, JW Marriott Hotel, Lake Central Tower, Sobha Sapphire, The Regal Tower,
Deliveries in 2013: Clover Bay, Damac Canal Views, 51@Business Bay, International Business Tower, Opal Tower, Oxford Tower, Park Central, Prime Tower, Sobha Ivory 1, Sobha Ivory 2, The Oberoi Center, The Residences at Business Central, Ubora Towers
Deliveries in 2014: Bay Square, Capital Bay, Damac Cour Jardin, ENI Coral Tower, The Burlington, West Wharf,
Deliveries in 2015: Damac Vogue, Executive Bay, The Bay Gate, The Binary
Residential Buildings in Business Bay
As of Q4 2015, there are 28 ready apartment buildings/complexes in Business Bay, 10 of which are part of the Executive Towers. The Executive Towers is by far the most well known and popular residential development in the community and makes up for the majority of transaction activity in both the sale and rental market. The rest of the apartment buildings are scattered across the community and predominantly are located on the other side of the Canal which cuts through Business Bay. Most of the residential buildings in the community are developed by Dubai Properties, Deyaar and Damac.
Office Buildings in Business Bay
Most of the office buildings in Business Bay are Grade B quality. A major drawback of office supply in Business Bay and in the Dubai in general is the fact that they have STRATA ownership - which is a drawback for office buildings when viewed from global best practices. Most developers sell office space at the time of launching a project. Therefore, by the time a building is ready, there are hundreds of owners who have purchased various sizes of office space. These type of buildings are not attractive for big business, especially the International Corporations who look for larger spaces in quality buildings with well structured management in place.
The highest quality office buildings in Business Bay are considered to be the ones developed by Ominiyat (Bayswater, The One, Binary Tower). Other quality office buildings include The Oberoi, Bay Square, Vision Tower, The Bay Gate and Al Manara Tower.
As of Q4 2015, there are 39 ready buildings in Business Bay which have office space. There are another 12 office buildings which are under-construction.
Hospitality Market in Business Bay
The JW Marriott, The Oberoi and the Taj Hotel are the major hotels in Business Bay. There are also a handful of ready serviced hotel apartment projects that have recently been delivered, all by Damac Properties (Capital Bay, Vogue, Cour Jardin).
Since 2013, a number of hotel serviced apartment projects have been launched/re-launched in the community - there are at least 9 such projects currently under-construction (examples include the Atria by Deyaar, Park Lane, Damac Towers by Paramount, Lillian Towers, The Opus, Bay's Edge, etc.
Reporting Prices in Business Bay
1. Lookup.ae conducts quarterly surveys on pricing, occupancy rates and transaction activity in Business Bay as well as about 60 other major communities in freehold Dubai. Our surveys cover the entire community as a whole and our reporting can be found within this section in the Property Prices and Historic Data sections.
2. Lookup.ae also publishes weekly data from the Dubai Land Department on individual building transactions. This data is accessible to real estate agents who are members of Lookup.ae.
3. Executive Towers has a separate section on Lookup.ae and prices of Executive Towers have not been included in this section (Business Bay). We have done this because Executive Towers has different characteristics than the rest of Business Bay residential. Its location is exceptional but it also has larger apartment sizes which sell cheaper psf (per sq. ft.) than other properties in Business Bay. Including Executive Tower prices along with rest of Business Bay residential skews the results and doesn't give us a better understanding of what is actually happening in the community in terms of transactions.
4. Dig deeper if you'd like by clicking on Transaction Prices Tab of Business Bay. The breakdown includes data of each property type's price, price psf range, average rental price and other information where available.
5. Investment Guides of this section will only report an interesting trend or a new project launch. These are updated only periodically. If you think that there is something we should be reporting on, please contact us.
6. Quality across Business Bay falls in between the mid-end & high-end category. Business Bay is unlike Downtown or Dubai Marina, where it is easier to classify buildings by quality and then see distinct patterns in transaction values. In Business Bay, we have a number of buildings but prices psf consistently fall in the same range for residential towers regardless of classification. Only a few residential buildings have really differentiated themselves, examples are the Bay Square, Churchill Residence and Ubora Tower - these buildings either offer location or architecture prominence.
7. Price data shown does not include hotel serviced apartments which is a market that has done quite well in the area since 2013.