Distress Deal

DISTRESS DEAL: 1-BR IN DAMAC BAY

Asking PriceAED 3,290,000

Below Original Price23.9%

Size871 sq.ft

Bedrooms1

Price / Sq.FtAED 3,777

HandoverQ4 2027

Sold

Listed 15 March 2026Status confirmed 3 August 2026

This unit has sold and is no longer available. The page is kept as a record of a deal we transacted. Every figure on it — the asking price, the discount to original price and the payment schedule — is the position as listed on 15 March 2026 and is historic. It is not an indication of what the same unit, or a comparable one, would cost today.

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The numbers

Payment breakdown

UNIT PRICE

AED 3,290,000

PAYMENTS ON TRANSFER

1. Payment to seller	AED 1,460,920
2. DLD Transfer fee 4% + 40 AED	AED 131,640
3. DLD Registration Trustee fee + 5% VAT	AED 5,250
4. Buyer's agent commission 2% + 5% VAT	AED 69,090

PAYMENT PLAN SCHEDULE

28-FEB-2026	AED 166,280
30-MAY-2026	AED 166,280
30-AUG-2026	AED 166,280
30-NOV-2026	AED 166,280
28-FEB-2027	AED 166,280
30-MAY-2027	AED 166,280
On Handover	AED 831,400

SUMMARY

Total on Transfer	AED 1,666,900
Total remaining Payment Plan	AED 1,829,080
TOTAL COST FOR BUYER	AED 3,495,980

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Gallery

Distress Deal

PROJECT DESCRIPTION

OVERVIEW

This 1-bedroom apartment in Damac Bay - Tower B is offered as a distress deal at AED 3,290,000, representing a 23.9% discount from the original price of AED 4,323,320. The unit spans 871 sq.ft, placing the entry price at AED 3,777 per sq.ft. Positioned on a high floor (approximately the 35th), the apartment features a full sea and Palm view with a balcony, and is scheduled for handover in Q4 2027. The payment plan is structured, with a significant portion due on transfer and the remainder spread across scheduled instalments up to handover. The investment thesis here is clear: this is a below-market entry into a branded, sea-facing project in Dubai Harbour, with a payment plan that reduces immediate capital outlay and a discount that provides a buffer against market volatility or future pricing shifts.

LOCATION & TRANSPORT

Damac Bay by Cavalli is located in Dubai Harbour, a waterfront district positioned between Dubai Marina and Palm Jumeirah. This area is designed for direct access to the beach and marina, with road connectivity to Sheikh Zayed Road and proximity to key city hubs such as Dubai Marina, JBR, and Media City. Public transport options are developing, but the area is primarily serviced by private vehicles, taxis, and ride-hailing apps. For investors, the location is significant: Dubai Harbour is emerging as a high-profile destination, with ongoing infrastructure improvements and a growing reputation as a lifestyle and tourism hub. The project’s position ensures strong visibility and accessibility, both for long-term residents and short-stay tenants seeking a waterfront address with city connectivity.

AMENITIES & SURROUNDING

Damac Bay by Cavalli is a multi-tower complex with interiors designed by the Cavalli fashion brand, giving the project a distinctive identity. Amenities are extensive, including private beach access, multiple swimming pools (including rooftop infinity pools), a spa, fitness facilities, children’s play areas, and unique features such as an 'Opera Pavilion' for live performances and a central synchronised water fountain. The project also offers themed lounges, landscaped gardens, and F&B outlets. The surrounding Dubai Harbour district is being developed with retail, dining, and leisure options, and benefits from proximity to established areas like Dubai Marina and JBR. The overall environment is designed to appeal to residents and visitors seeking a high-amenity, waterfront lifestyle, with the added cachet of branded interiors and curated communal spaces.

MARKET

At an entry price of AED 3,777 per sq.ft, this unit sits at the upper end of Dubai’s apartment market, but this is consistent with branded, sea-facing projects in prime waterfront locations. The 1-bedroom layout with full sea and Palm views is likely to appeal to international buyers, end-users, and investors targeting short-term rental income. The payment plan structure provides flexibility, reducing upfront capital requirements and potentially improving yield calculations. Liquidity for branded, high-floor, sea-view units in Dubai Harbour is expected to be robust, especially as the area matures and more infrastructure comes online. However, investors should be aware of the risks associated with off-plan purchases: construction timelines, future supply in the area, and the need to manage service charges and fit-out costs upon handover. The discount to original price provides a margin of safety, but the final investment outcome will depend on market conditions at completion and the project’s operational performance.

CONCLUSION

This distress deal in Damac Bay - Tower B offers a discounted entry into a branded, sea-facing project in one of Dubai’s most anticipated waterfront districts. The combination of a substantial price reduction, a flexible payment plan, and a high-floor position with full sea and Palm views makes the unit attractive for investors seeking exposure to Dubai’s premium residential segment. The main considerations are the off-plan nature of the asset, the evolving infrastructure in Dubai Harbour, and the need to factor in service charges and future market dynamics. For buyers comfortable with these factors, the deal provides a clear value proposition: a below-market acquisition in a project with strong branding, amenity depth, and long-term rental and resale potential. As always, due diligence on payment schedules, developer track record, and market comparables is recommended before commitment.

Illustrative model

Scenario modeller

Set your own assumptions and see how DISTRESS DEAL: 1-BR IN DAMAC BAY behaves as a cash purchase, the same purchase mortgaged, or a capital-only resale.

Purchase

Purchase price

The price you are actually considering.

Unit size

Drives the service charge only.

Time to handover

Rent and service charge both start here.

Holding & income

Gross annual rent

Your figure — we have not assumed one.

Rent growth

0% holds rent flat. It may be negative.

Vacancy allowance

8% is roughly a month plus re-letting.

Maintenance & management

Letting fees and routine repairs.

Service charge

Replace with the building's own schedule.

Acquisition costs

DLD transfer fee

4% is the Dubai standard.

Agency fee

Buyer-side. 5% VAT added.

Conveyancing, trustee & admin

Trustee, title deed, NOC.

Exit

Holding period

1 to 40 years.

Exit price growth

0% by default: we publish no price forecasts.

Sale agency fee

5% VAT added automatically.

Nothing to calculate yet

Enter the asking price to run the model.

Every figure recalculates as you type. Use the price you are actually considering.

How each figure is calculated

Handover: The date the unit is handed over, set in quarters from purchase. Gross rent, the vacancy allowance, maintenance and management, and the service charge all start there and not before — an unbuilt unit cannot be let and is not billed. The year handover falls in gets the exact fraction it is entitled to, not a rounded whole year. Capital growth is not treated this way: it compounds from today across the whole hold, because an off-plan unit can be sold before it completes. Where the holding period ends before handover, there is no operating income anywhere in the schedule and the whole return is capital movement less costs.
Gross yield: Gross annual rent ÷ purchase price. Before every cost. Where handover is in the future this is a stabilised full year from handover — a rate on the price, not a figure reduced by the construction period. The schedule shows what each year actually books.
Net yield: (Rent collected after the vacancy allowance − maintenance and management − service charge) ÷ purchase price. Stabilised on the same basis as the gross yield.
Rent growth: Compound annual movement in gross rent, applied from handover and stepping at each anniversary of it, which is when a tenancy renews. It may be negative. It does not touch the service charge, which is held flat in nominal terms.
ROI: Total profit over the whole hold ÷ total cash invested (price + all acquisition costs). Unlevered. Not an annual rate.
ROE: Total profit over the whole hold ÷ equity contributed (deposit + all acquisition and finance costs), after debt service. Levered. Not an annual rate.
Cash-on-cash return: Year-one operating cash flow, after debt service where there is a mortgage, ÷ cash invested. Reported separately from ROI/ROE and never merged with it. Year one means the first year of the schedule as it stands: where that year falls before handover it carries no rent, so on a mortgaged off-plan purchase the figure is negative — that is the year you fund out of pocket, and it is shown rather than smoothed away.
IRR: The annualised rate that discounts the dated cash-flow schedule above to a net present value of zero, solved numerically. Where the schedule has no sign change, or the solver does not converge on a single meaningful rate, we print “—” rather than substitute a simpler annualised-return figure.

An illustrative model, not a forecast, a valuation, an offer or investment advice. Every figure is generated from the assumptions on this page — some yours, the rest stated defaults, not promises. Rents, service charges, fees, vacancy, handover dates, financing terms and sale prices vary by unit and over time; past prices are not a guide to future prices. Returns are not guaranteed and capital is at risk.

Mortgage availability, loan-to-value, rate and term are subject to lender criteria and underwriting; nothing here indicates that finance will be offered. Figures exclude any tax payable in your country of residence — take independent financial, tax and legal advice before committing. Mitchell’s Realty is a trading brand; the RERA-licensed entity is The Luxury Real Estate Brokers LLC.

Location

DAMAC BAY — Beachfront, Dubai

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