Distress Deal
On this page
The numbers
| UNIT PRICE | AED 1,350,000 |
| Payment to seller | AED 1,350,000 |
| DLD Transfer fee (4% + 40 AED) | AED 54,040 |
| Trustee Office Fee | AED 4,200 |
| Buyer's Agency Commission (2% + VAT) | AED 28,350 |
| Title Deed Fee | AED 580 |
| Total on Transfer | AED 1,437,170 |
| TOTAL COST FOR BUYER | AED 1,437,170 |
Layout
Distress Deal
This is a two-bedroom apartment in Aark Residence, in Dubailand Residence Complex. The unit measures 1,225 sq.ft on a low floor with a community outlook and a balcony. It is complete and tenanted, with the lease running to August 2027, so a buyer acquires an income-producing asset rather than a construction position. The asking price is AED 1,350,000 against an original price plus DLD of AED 1,372,800, a reduction of AED 22,800 or 1.7% below original price. On 1,225 sq.ft of built-up area that is AED 1,102 per square foot. Because the unit is ready, the whole consideration settles at transfer: AED 1,350,000 to the seller plus AED 54,040 DLD transfer fee, AED 4,200 trustee office fee, AED 28,350 agency commission and an AED 580 title deed fee, for a total buyer cost of AED 1,437,170.
Dubailand Residence Complex sits in the southern band of Dubailand, off Sheikh Mohammed Bin Zayed Road with access via Al Ain Road. It is a mid-market residential pocket built around clusters of apartment buildings rather than villas, and it has filled in steadily as Dubailand's wider masterplan has advanced. Global Village and the IMG Worlds of Adventure theme park are close neighbours, and Dubai Silicon Oasis, with its offices and schools, lies to the north-east. Downtown Dubai is roughly twenty-five minutes by car outside peak hours and Dubai International Airport around thirty. The district is car-dependent, with no metro station in walking distance, which is reflected in the price point and in the tenant profile the area attracts. Bus routes run along the main arteries, but in practice residents here drive, and parking provision is part of what makes the building work.
Aark Residence is a completed apartment building, and the practical amenity for a buyer here is that everything is in place and verifiable on inspection rather than promised. Buildings in Dubailand Residence Complex generally provide a swimming pool, a gym, covered parking and basic community landscaping. The surrounding cluster carries the supermarkets, pharmacies, laundries and casual dining that serve a resident population, with larger retail at Dubai Outlet Mall and Global Village within a short drive. Schools serving the area include those clustered around Dubai Silicon Oasis and Academic City. The community outlook from a low floor is a modest attribute, but it is the kind of unit that lets easily because the rent sits where a broad band of tenants can reach it.
The 1.7% gap to original price is small, and it is not the reason to look at this unit. The case here is yield and certainty: the apartment is finished, it is let until August 2027 and the entry price of AED 1,102 per square foot on built-up area sits at the lower end of the Dubai apartment range. A buyer takes on an existing tenancy, which means income from day one but also means the unit cannot be occupied or re-let until the lease runs out. Dubailand Residence Complex competes on affordability rather than address, and its risk is supply: the surrounding land bank is large and further apartment stock will come forward. Liquidity in this segment depends on rent levels holding, which in turn depends on how quickly that supply arrives. A buyer should also model the service charge, because at this price point it is a meaningful share of the gross yield rather than a rounding item.
This is an income purchase rather than a discount play. The unit is built, occupied and let to August 2027, and the entry price of AED 1,102 per square foot on built-up area is modest. A buyer gets a rent cheque immediately and a clean title transfer with no construction risk to carry. The trade-off is that the discount to original price is nominal, the tenancy limits what can be done with the unit in the near term, and the district is car-dependent and exposed to future supply. Every figure here comes from the seller's published listing. Confirm the rent, the lease terms and the service charge with us before acting, and we can arrange a viewing subject to the tenant's notice. The title deed fee and trustee charge are already included in the total cost shown above.
Illustrative model
Set your own assumptions and see how DISTRESS DEAL: 2-BR IN AARK RESIDENCE 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 1,432,350 |
| 1 | AED 0 | — | AED 0 |
| 2 | AED 0 | — | AED 0 |
| 3 | AED 0 | — | AED 0 |
| 4 | AED 0 | — | AED 0 |
| 5 | AED 0 | AED 1,321,650 | AED 1,321,650 |
| Years 1–5 | AED 0 | AED 1,321,650 | AED 1,321,650 |
| Less the year-0 outflow of AED 1,432,350 → total profit | −AED 110,700 | ||
Exit at year 5: illustrative sale price AED 1,350,000 less selling costs AED 28,350 = AED 1,321,650 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 1.04M | — | — | — |
| −3% p.a. | AED 1.16M | — | — | — |
| 0% p.a.your figure | AED 1.35M | — | — | — |
| 3% p.a. | AED 1.57M | — | — | — |
| 5% p.a. | AED 1.72M | — | — | — |
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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