Distress Deal

DISTRESS DEAL: 1-BR IN DAMAC BAY 2

Asking PriceAED 2,950,000

Below Original Price13.5%

Size780 sq.ft

Bedrooms1

Price / Sq.FtAED 3,782

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 2,950,000

PAYMENTS ON TRANSFER

1. Payment to seller	AED 1,505,480
2. DLD Transfer fee 4% + 40 AED	AED 118,040
3. DLD Registration Trustee fee + 5% VAT	AED 5,250
4. Buyer's agent commission 2% + 5% VAT	AED 61,950

PAYMENT PLAN SCHEDULE

10.11.2025	AED 131,320
10.02.2026	AED 131,320
10.05.2026	AED 131,320
10.08.2026	AED 98,490
10.11.2026	AED 98,490
10.02.2027	AED 98,490
10.05.2027	AED 98,490
On Handover	AED 656,600

SUMMARY

Total on Transfer	AED 1,690,720
Total remaining Payment Plan	AED 1,444,520
TOTAL COST FOR BUYER	AED 3,135,240

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Distress Deal

PROJECT DESCRIPTION

OVERVIEW

This 1-bedroom apartment in Damac Bay 2 is presented as a distress deal at AED 2,950,000, reflecting a 13.5% discount to the original price of AED 3,411,200. The unit measures 780 sq.ft, placing the entry at approximately AED 3,782 per sq.ft. The project is scheduled for completion in Q4 2027, with a staged payment plan available. The immediate investment thesis is access to a branded, waterfront address in a new Cavalli-designed development, at a visible discount to the original developer price. For buyers, this means an opportunity to secure a prime Dubai Harbour position with a lower capital outlay than current launch pricing, while still benefiting from the project's handover timeline and payment structure. The deal is structured for those seeking a mid-term off-plan position with a clear discount, rather than an immediate rental asset or a speculative early-stage launch flip.

LOCATION & TRANSPORT

Damac Bay 2 is located in Dubai Harbour, a master-planned waterfront district positioned between Dubai Marina and Palm Jumeirah. This location offers direct access to Sheikh Zayed Road, facilitating straightforward commutes to key business and leisure hubs such as Dubai Marina, JBR, Media City, and Downtown Dubai. Public transport options are developing in the area, with taxis and ride-hailing services currently providing the main connectivity. The proximity to Dubai Marina and the planned cruise terminal enhances both the lifestyle appeal and the practical accessibility of the address. For investors, the Dubai Harbour location is significant: it is one of the few new-build, branded residential offerings with direct beach and marina access, supporting both end-user and rental demand. The area is expected to see further infrastructure improvements as the district matures, which may support future capital appreciation and liquidity.

AMENITIES & SURROUNDING

Damac Bay 2 is being developed in partnership with the Cavalli fashion brand, with interiors and common areas reflecting a nautical and fashion-inspired design language. The project is planned to offer a range of amenities, including private beach access, multiple swimming pools, rooftop leisure decks, a Cavalli-branded lounge, and a fitness centre. Unique features such as an 'Opera Pavilion' for live performances, floating workstations in rooftop pools, and water-themed children’s learning areas are part of the design brief. The wider Dubai Harbour district is set to include retail, dining, and entertainment options, as well as marina facilities and landscaped promenades. Residents will benefit from the emerging infrastructure, with easy access to Dubai Marina’s established amenities and the planned cruise terminal. The building is designed to provide a high-amenity, service-led environment, appealing to both residents and tenants seeking a waterfront lifestyle with branded service elements.

MARKET

At an entry price of AED 3,782 per sq.ft, this unit sits within the upper tier of Dubai’s off-plan waterfront market, but the discount to original price provides a margin for investors relative to current developer launches in comparable branded projects. The one-bedroom format is likely to appeal to a mix of end-users, corporate tenants, and short-term rental operators, given the location and amenity profile. Liquidity for branded, waterfront one-bedroom units in Dubai Harbour is expected to be supported by ongoing demand for new-build, service-oriented apartments, though the segment is not immune to broader market cycles or delivery risk. The main risk points are construction timeline adherence, future service charge levels, and the pace at which the Dubai Harbour district matures and achieves full operational infrastructure. For investors, the case rests on the combination of a visible discount, a payment plan that reduces capital exposure during construction, and the potential for both rental and resale demand at handover, provided the project delivers as specified.

CONCLUSION

This distress deal in Damac Bay 2 offers a discounted entry into a branded, waterfront development in one of Dubai’s most strategically positioned new districts. The 1-bedroom layout, Cavalli design partnership, and planned amenity set make it a credible option for investors seeking mid-term capital appreciation or future rental income. The key strengths are the below-original price entry, the staged payment plan, and the Dubai Harbour location, which is expected to see further growth as infrastructure and amenities are delivered. The main considerations are construction risk, service charge levels, and the pace of area maturity. For buyers comfortable with an off-plan timeline and seeking exposure to Dubai’s branded waterfront segment, this deal provides a balanced entry point with a clear discount to original pricing and the potential for both end-user and investor demand at handover.

Illustrative model

Scenario modeller

Set your own assumptions and see how DISTRESS DEAL: 1-BR IN DAMAC BAY 2 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 2 — Beachfront, Dubai

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