Distress Deal
On this page
The numbers
| UNIT PRICE | AED 1,830,000 |
| Payment to seller | AED 979,438 |
| DLD Transfer fee (4% of OP + 40 AED) | AED 85,120 |
| Trustee Office Fee | AED 5,250 |
| Buyer's Agency Commission (2% + VAT) | AED 38,430 |
| On Handover | AED 850,562 |
| Total on Transfer | AED 1,108,238 |
| Total remaining Payment Plan | AED 850,562 |
| TOTAL COST FOR BUYER | AED 1,958,800 |
Layout
Distress Deal
This is a fully furnished one-bedroom apartment in Society House, the IGO tower in Downtown Dubai. The unit measures 753 sq.ft between the 6th and 10th floors, with a Downtown outlook and a balcony, and the building is complete. The asking price is AED 1,830,000 against an original price plus DLD of AED 2,212,080, a reduction of AED 382,080 or 17.3% below original price. On 753 sq.ft of built-up area that is AED 2,430 per square foot, which is low for a Downtown Dubai address. The buyer settles AED 1,108,238 at transfer, of which AED 979,438 goes to the seller, and takes on a remaining balance of AED 850,562 payable on handover, giving a total cost of AED 1,958,800. The furniture is included in the asking price.
Society House sits on Sheikh Mohammed Bin Rashid Boulevard in Downtown Dubai, the district built around the Burj Khalifa and The Dubai Mall. The Dubai Mall and Burj Khalifa metro station on the Red Line is within walking distance, as is the tram-free but pedestrianised Boulevard itself, the Dubai Fountain and the Souk Al Bahar bridge. Sheikh Zayed Road runs along the western edge of the district, putting DIFC and Business Bay within minutes and Dubai Marina around twenty-five. Dubai International Airport is roughly fifteen minutes by car outside peak hours. Downtown is one of the few Dubai districts where a resident can genuinely live without a car, and that is a significant part of what the address is worth.
Society House is a completed residential tower on the Boulevard, and its residents sit inside the Downtown amenity set rather than depending on the building alone. The Dubai Mall, with its retail, aquarium, ice rink and cinema, is a short walk away, as are the restaurants of Souk Al Bahar and the Boulevard's street-level cafes. Burj Park and the fountain lake give the district its open space. Towers of this class in Downtown typically provide a pool deck, a gym, concierge cover and covered parking. The unit itself is fully furnished, on a mid-level floor with a Downtown outlook and a balcony, which makes it immediately lettable on either a long lease or, subject to building rules and permits, short-stay. Service charges in Downtown towers sit at the higher end of the Dubai range, and that should be modelled before a yield is calculated.
AED 2,430 per square foot on built-up area is a notably low figure for Downtown Dubai, where the address ordinarily commands a premium over the wider market. A 17.3% reduction against the original price plus DLD on a finished, furnished unit is the headline here. The counterweight is the payment structure: although the building is complete, AED 850,562 of the consideration still falls due on handover, so a buyer must understand exactly what triggers that payment before committing. Downtown one-bedroom apartments have a deep tenant pool drawn from DIFC, Business Bay and the hospitality sector, and the furnished specification widens it further. Supply in Downtown is constrained by land, which has historically supported values relative to newer districts with open land banks. The Boulevard position also matters for short-stay demand, which in Downtown is driven by proximity to the fountain and the mall rather than by the building itself. Buildings differ in whether they permit holiday-home licensing, and that is a question to settle before underwriting any short-let assumption.
For a buyer who wants a Downtown Dubai address at a price per square foot more usually seen further out, this is a direct opportunity. The unit is built, furnished and ready to let, the discount to original price is material at 17.3%, and the location carries walkable access to the metro, the mall and the Boulevard. The item to settle before proceeding is the AED 850,562 handover payment and precisely when it becomes due on a completed building. Every figure on this page is taken from the seller's published listing. Confirm the payment trigger, the service charge and the furniture inventory with us before you act, and we can arrange a viewing. A furnished unit in this district can usually be brought to market within days of transfer.
Illustrative model
Set your own assumptions and see how DISTRESS DEAL: 1-BR IN SOCIETY HOUSE behaves as a cash purchase, the same purchase mortgaged, or a capital-only resale.
As stated on this listing: the asking price measured against the original purchase price recorded for this unit. It is not a discount to current market value and not a valuation — a unit priced below what it originally sold for may still be at or above what comparable units achieve today. Check the registered comparables before treating the gap as equity. It is not used in any calculation below.
The asking price divided by the stated size. Compare it against registered sales in the same building before deciding whether the asking price is competitive.
Set service charge, maintenance & management, vacancy allowance above to see cash back — until then this figure would be assuming zero for them.
This is the ROI and IRR denominator: the price plus every cost of getting the keys, not the price alone.
No rental evidence is held for this unit. The rent figure is yours to set — we have not assumed one. Until you enter a gross annual rent, the yield, ROI/ROE and IRR figures reflect capital movement and costs only.
Figures marked “—” need service charge, maintenance & management, vacancy allowance entered above — we do not compute them on an assumed zero.
| Year | Net operating income | Sale proceeds, net | Net cash flow |
|---|---|---|---|
| 0 · today | — | — | −AED 1,941,630 |
| 1 | AED 0 | — | AED 0 |
| 2 | AED 0 | — | AED 0 |
| 3 | AED 0 | — | AED 0 |
| 4 | AED 0 | — | AED 0 |
| 5 | AED 0 | AED 1,791,570 | AED 1,791,570 |
| Years 1–5 | AED 0 | AED 1,791,570 | AED 1,791,570 |
| Less the year-0 outflow of AED 1,941,630 → total profit | −AED 150,060 | ||
Exit at year 5: illustrative sale price AED 1,830,000 less selling costs AED 38,430 = AED 1,791,570 net. The final column is the schedule the IRR is solved from. Rent is held flat in nominal terms — the rent-growth field is at 0% — as is the service charge, so no inflation is assumed on either side. This audit table is arithmetic, so every row must resolve to a number — but service charge, maintenance & management, vacancy allowance are not set above, and the figures here currently assume zero for them. Nothing on this table should be read as a result until you set them; the headline tiles above withhold theirs for exactly this reason.
| Exit growth | Exit price | Total profit | ROI | IRR |
|---|---|---|---|---|
| −5% p.a. | AED 1.42M | — | — | — |
| −3% p.a. | AED 1.57M | — | — | — |
| 0% p.a.your figure | AED 1.83M | — | — | — |
| 3% p.a. | AED 2.12M | — | — | — |
| 5% p.a. | AED 2.34M | — | — | — |
Each row re-runs the whole model with only the exit growth rate changed, over the same 5-year hold. The 0% and negative rows are not a worst case — they are simply what the same purchase returns if prices do not rise. Dubai prices have fallen in the past and can fall again. The return columns are shown as “—” until a gross annual rent is set; the total profit column reflects capital movement, purchase and sale costs and the service charge only.
We’ll send this scenario — your assumptions and the figures they produce — to your inbox.
Set service charge, maintenance & management, vacancy allowance above and we can email you this scenario. Until then every headline figure reads “—”, because the model would otherwise be assuming zero for them — and we publish no figure for them.
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 Commercial Real Estate is a trading brand; the RERA-licensed broker is Stephen James Mitchell, BRN 68593.
More deals
The most recently listed deals that were still available when we last checked. Sold units are not shown here.
DAMAC Sun City
Healthcare City Phase II
Arjan
The Valley
Saadiyat Island, Abu Dhabi
Emaar South
Read next
A discounted unit is bought the same way any other is — the questions are just sharper. These are our own guides and articles on buying from overseas, taking on a resale or an off-plan assignment, and what the purchase actually costs.
The gold rule under an entry is its length, against the longest piece here.
How to Buy Dubai Property from Overseas
Power of attorney, attestation country by country, remote AML checks, funding the purchase, and remote signing against a short trip.
How to Buy Ready (Secondary) Property in Dubai
The fixed sequence the Land Department sets for a resale — an agreed Form F, a deposit, a developer NOC and the Trustee Office transfer.
Pre-Handover Assignment (Off-Plan ‘Flipping’) in Dubai: How It Works
Assigning an off-plan unit before handover — the developer NOC and minimum-paid rules, the fees that come off the profit, and when it still loses money.
Off-Plan Payment Plans in Dubai Explained: 10/90, 50/50 and Post-Handover
Construction-linked and post-handover structures, what escrow protects at each stage, and what happens if a later instalment cannot be funded.
NOC (No Objection Certificate) for a Dubai Property Purchase
What the developer’s certificate actually confirms, how service-charge clearance runs through Mollak, and the usual reasons issuance is delayed.
How to Vet a Dubai Developer Before You Buy
Brochures are marketing; DLD registration, project escrow status and broker licensing are checkable public facts. How to verify all three.
A Due-Diligence Checklist for Buying in Dubai
Who owns the title, whether the unit carries a mortgage or a restriction, whether its service charges are current — in order, with the tool that verifies each.
The True Cost of Buying Property in Dubai: All Fees Explained
Every fee set out individually — transfer, trustee office, agency commission, developer NOC and the mortgage costs — against the Land Department’s own published figures.
Mortgages for Non-Residents in Dubai
What a genuine non-resident can borrow, as distinct from a UAE-resident expatriate, which banks lend, and how a purchase is completed remotely.
Capital Gains & Property Tax in Dubai: What Investors Actually Pay
What an individual owner is and is not charged here, which transaction cost is the real one, and why your home-country position is a separate question.
How to Buy a Cancellation Unit in Dubai: Strategic Guide
A cancellation unit is a launch booking the first buyer lost — how they reach the market, and the steps to secure one at launch pricing.
How to Buy Dubai Property During Crisis and Build a Portfolio at Peak Fear
The historical entry points, yields by district, and a contrarian acquisition process for buying when confidence is at its lowest.
Buying a Resale Property in Dubai: Step-by-Step Guide for Investors
The process, the legal steps, the costs and the mortgage options, for residents and international investors alike.
How to Buy Property in Dubai as a Foreign Investor: Step-By-Step Guide
Costs, the legal process, the risks, and how to structure the investment — written for a buyer outside the UAE.
Buying Off-Plan Property in Dubai: Primary Market Guide
EOIs, SPAs, payment plans, Oqood, escrow, resales and mortgages — the primary market end to end.
Residential Mortgages in Dubai: Guide for Expats and Investors
Rates, loan-to-value limits, eligibility, fees and the documents a lender asks for, for residents and investors.
