Distress Deal
On this page
The numbers
| UNIT PRICE | AED 1,835,000 |
| Payment to seller | AED 794,874 |
| DLD Transfer fee (4% of OP + 40 AED) | AED 83,240 |
| Trustee Office Fee | AED 5,250 |
| Buyer's Agency Commission (2% + VAT) | AED 38,535 |
| 15-09-2026 | AED 208,025 |
| On completion (15-01-2027) | AED 832,101 |
| Total on Transfer | AED 921,899 |
| Total remaining Payment Plan | AED 1,040,126 |
| TOTAL COST FOR BUYER | AED 1,962,025 |
Layout
Distress Deal
This is a one-bedroom apartment in Sunset Bay 2, the Imtiaz development on Dubai Islands, measuring 998 sq.ft between the 3rd and 7th floors with a community outlook and a balcony. The asking price is AED 1,835,000 against an original price plus DLD of AED 2,163,200, a reduction of AED 328,200 or 15.2% below original price. On 998 sq.ft of built-up area that is AED 1,839 per square foot. The buyer settles AED 921,899 at transfer, of which AED 794,874 goes to the seller, and then carries AED 1,040,126 in two instalments: AED 208,025 on 15 September 2026 and AED 832,101 on completion, dated 15 January 2027 in the seller's schedule. Total cost to the buyer is AED 1,962,025, with handover given as Q1 2027.
Dubai Islands is the Nakheel-led redevelopment of the former Deira Islands, a group of reclaimed islands off the Deira waterfront. Access is by bridge from Deira, with Al Khaleej Road running south into the older city and connecting to Al Shindagha Tunnel and the creek crossings. Gold Souk and Palm Deira metro stations on the Green Line serve the mainland side. Dubai International Airport is roughly fifteen minutes by car, which is unusually short for a Dubai residential district. The islands are still being built out, with hotels, beach clubs and residential towers delivering in phases, and buyers here are taking a position on the district's trajectory rather than on a finished product. Deira itself remains one of the densest commercial districts in the city, so the surrounding tenant and retail base is established rather than speculative.
Sunset Bay 2 is an Imtiaz development, and residential buildings of this type on Dubai Islands are typically delivered with a pool deck, a gymnasium, landscaped podium space and covered parking. The wider Dubai Islands masterplan is planned around public beaches, a marina, hotel resorts and a beachfront promenade, and it is the beach frontage rather than the individual building that carries the district's value proposition. This particular unit sits on a low-to-mid floor between the 3rd and 7th with a community view rather than a sea aspect, which is reflected in the price per square foot. The established souks, restaurants and waterfront of Deira are a short drive across the bridge, and Dubai Festival City lies further south along the creek. Service charges on Dubai Islands buildings are not yet proven across a full operating cycle, and that is worth allowing for in any yield assumption.
At AED 1,839 per square foot, this is priced well below the beachfront towers elsewhere on Dubai Islands, and the 15.2% reduction against original price plus DLD is a genuine discount rather than a nominal one. The payment structure is short: after transfer there are only two instalments, and both fall within the next sixteen months. That suits a buyer who wants to be fully paid up by early 2027 and then let or resell. The district's risk is delivery pace. Dubai Islands has a large programme of hotels and residential towers still to complete, and the amenity that justifies the pricing arrives with them. A community-view unit is also more exposed to future construction blocking or changing the outlook than a sea-facing one. At 998 sq.ft the unit is large for a one-bedroom apartment, and floor area is one of the few attributes a buyer can rely on when comparing across a district that is still establishing its price bands.
This unit suits a buyer who wants scale for the money on Dubai Islands and is comfortable with a community rather than sea aspect. At 998 sq.ft it is generously sized for a one-bedroom, the discount to original price is material, and the remaining payments are short-dated and modest. The cautions are the district's construction pace and the risk that future towers alter the outlook from a low-to-mid floor. Every figure on this page is taken from the seller's published listing. Confirm the completion date, the service charge and the immediate development plots with us before you act, and we can arrange an introduction to the seller's agent. We can also confirm whether the two remaining instalments can be settled early.
Illustrative model
Set your own assumptions and see how DISTRESS DEAL: 1-BR IN SUNSET BAY 2 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.
As stated on this listing. Rent cannot start before handover, so on an incomplete unit the early years of the schedule below are holding cost only.
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 1,946,935 |
| 1 | AED 0 | — | AED 0 |
| 2 | AED 0 | — | AED 0 |
| 3 | AED 0 | — | AED 0 |
| 4 | AED 0 | — | AED 0 |
| 5 | AED 0 | AED 1,796,465 | AED 1,796,465 |
| Years 1–5 | AED 0 | AED 1,796,465 | AED 1,796,465 |
| Less the year-0 outflow of AED 1,946,935 → total profit | −AED 150,470 | ||
Exit at year 5: illustrative sale price AED 1,835,000 less selling costs AED 38,535 = AED 1,796,465 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 1.58M | — | — | — |
| 0% p.a.your figure | AED 1.83M | — | — | — |
| 3% p.a. | AED 2.13M | — | — | — |
| 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.
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