Distress Deal
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The numbers
| UNIT PRICE | AED 2,950,000 |
| Payment to seller | AED 1,224,100 |
| DLD Transfer fee 4% + 40 AED | AED 118,040 |
| DLD Registration Trustee fee + 5%VAT | AED 5,250 |
| Buyer's agent comission 2% + 5%VAT | AED 61,950 |
| 15-Dec-2026 | AED 313,800 |
| 15-Aug-2027 | AED 156,900 |
| On Handover (15-Jun-2029) | AED 941,400 |
| Total on Transfer | AED 1,409,340 |
| Total remaining Payment Plan | AED 1,725,900 |
| TOTAL COST FOR BUYER | AED 3,135,240 |
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Distress Deal
This is a 2-bedroom apartment opportunity in Bay Grove Residences, Building B14, located on Dubai Islands and developed by Nakheel. The unit offers a well-proportioned 1,246 sq.ft of internal space, positioned on a low floor with a sea view and balcony. The current asking price stands at AED 2,950,000, which is 9.9% below the original price of AED 3,276,000, representing a discount of AED 326,000. This brings the price per square foot to AED 2,368, which is competitive for a new-build, waterfront project in this emerging district. The total buyer cost, including all payments, is AED 3,135,240. The handover is scheduled for Q3 2028, providing a clear timeline for completion and occupancy. The immediate investment thesis here is the ability to secure a waterfront property from a leading developer at a meaningful discount to launch pricing, with a payment plan structure that allows for staged capital deployment.
Bay Grove Residences is situated on Dubai Islands, an ambitious master-planned area by Nakheel, positioned off the Deira coastline. Dubai Islands is designed to be one of the city’s next-generation lifestyle destinations, with direct road links to the mainland and convenient access to the wider city. The area is accessible via the Deira Islands Bridge, connecting directly to the mainland road network, and is within reasonable driving distance of Dubai International Airport and the central business districts. Public transport options are expected to expand as the area matures, with plans for improved bus and water transport links. The proximity to Deira and the northern parts of Dubai ensures that residents and tenants will benefit from established retail, healthcare, and educational infrastructure, while also enjoying the relative tranquillity of an island setting.
Bay Grove Residences is conceived as a multi-building complex with a strong focus on community and wellness. The project features a green podium linking the four residential buildings, with an infinity pool overlooking the waterfront. Residents have access to an adults-only pool, a separate children’s pool, barbecue facilities, and sun loungers. The development includes a clubhouse, residents’ lounge, and co-working space, supporting both leisure and remote working needs. Fitness amenities are comprehensive, with a fully equipped fitness centre, yoga and meditation areas, and a running track. Additional features include bicycle storage, a pet wash station, indoor play areas for children, shaded seating, and visitor parking. The design incorporates floor-to-ceiling windows, terraces, and in-built storage within the apartments, maximising natural light and functionality. The wider Dubai Islands masterplan is expected to deliver landscaped parks, waterfront promenades, and a range of retail and dining options as the area develops.
From an investment perspective, Bay Grove Residences is positioned to appeal to both end-users and rental investors seeking waterfront living at a relative value. Recent transactions in the development indicate price points in the range of AED 2,222–2,415 per sq.ft for comparable units, suggesting that this apartment is priced attractively within the current market context. The handover in 2028 allows investors to benefit from capital appreciation as the Dubai Islands district matures and infrastructure is completed. Rentability is supported by the project’s amenities, waterfront views, and the growing appeal of Dubai Islands as a residential destination. Liquidity is likely to improve as handover approaches and as more residents move into the area. Key risk factors include the pace of infrastructure delivery on Dubai Islands and the broader market’s absorption of new supply. However, the backing of a major developer and the staged payment plan help to mitigate some of these risks.
This 2-bedroom apartment in Bay Grove Residences, Building B14, offers investors a chance to acquire a waterfront property from a reputable developer at a notable discount to original pricing. The payment structure allows for capital to be deployed in stages, and the project’s amenity offering is well-aligned with the expectations of both end-users and tenants. While the area is still in the development phase, the long-term vision for Dubai Islands and the quality of the project’s design and facilities provide a solid foundation for future value. Investors should consider the timeline to handover and the evolving nature of the district, but for those seeking exposure to Dubai’s next waterfront precinct at below-launch pricing, this opportunity warrants close attention.
Illustrative model
Set your own assumptions and see how DISTRESS DEAL: 2-BR IN BAY GROVE RESIDENCES - BUILDING B14 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.
Cash back is below cash out on these assumptions: over the whole hold this purchase returns less than it costs. Read the sensitivity table before drawing a conclusion.
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.
| Year | Net operating income | Sale proceeds, net | Net cash flow |
|---|---|---|---|
| 0 · today | — | — | −AED 3,139,950 |
| 1 | −AED 22,428 | — | −AED 22,428 |
| 2 | −AED 22,428 | — | −AED 22,428 |
| 3 | −AED 22,428 | — | −AED 22,428 |
| 4 | −AED 22,428 | — | −AED 22,428 |
| 5 | −AED 22,428 | AED 2,888,050 | AED 2,865,622 |
| Years 1–5 | −AED 112,140 | AED 2,888,050 | AED 2,775,910 |
| Less the year-0 outflow of AED 3,139,950 → total profit | −AED 364,040 | ||
Exit at year 5: illustrative sale price AED 2,950,000 less selling costs AED 61,950 = AED 2,888,050 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.
| Exit growth | Exit price | Total profit | ROI | IRR |
|---|---|---|---|---|
| −5% p.a. | AED 2.28M | −AED 1.02M | — | — |
| −3% p.a. | AED 2.53M | −AED 772k | — | — |
| 0% p.a.your figure | AED 2.95M | −AED 364k | — | — |
| 3% p.a. | AED 3.42M | AED 96k | — | — |
| 5% p.a. | AED 3.77M | AED 434k | — | — |
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.
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.
