Distress Deal

DISTRESS DEAL: 2-BR IN CANAL BAY

Asking PriceAED 1,977,000

Below Original Price22.1%

Size1,112 sq.ft

Bedrooms2

Price / Sq.FtAED 1,778

Sold

Listed 24 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 24 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 1,977,000

PAYMENTS ON TRANSFER

1. Payment to seller	AED 635,000
2. DLD Transfer fee 4% + 40 AED	AED 79,120
3. DLD Registration Trustee fee + 5% VAT	AED 5,250
4. Buyer's agent commission 2% + 5% VAT	AED 41,517

PAYMENT PLAN SCHEDULE

30-MAR-2026	AED 122,000
30-JUN-2026	AED 122,000
30-SEP-2026	AED 122,000
30-DEC-2026	AED 122,000
30-MAR-2027	AED 122,000
30-JUN-2027	AED 122,000
30-SEP-2027	AED 122,000
30-DEC-2027	AED 122,000
30-MAR-2028	AED 122,000
30-JUN-2028	AED 122,000
30-SEP-2028	AED 122,000

SUMMARY

Total on Transfer	AED 760,887
Total remaining Payment Plan	AED 1,342,000
TOTAL COST FOR BUYER	AED 2,102,887

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Distress Deal

PROJECT DESCRIPTION

OVERVIEW

This is a distress deal for a ready, fully furnished two-bedroom apartment in Canal Bay, Business Bay, offered at AED 1,977,000. The original price was AED 2,537,600, representing a 22.1% discount or AED 560,600 below the initial reference. The apartment measures 1,112 sq.ft, which sets the entry price at AED 1,778 per sq.ft. This is a mid-floor unit with a canal view and balcony, and immediate handover is available. The payment structure includes an upfront payment on transfer and a post-handover payment plan stretching to mid-2028, which can support both investors seeking manageable cash flow and end-users who value payment flexibility. The deal thesis is straightforward: the buyer secures a completed, canal-facing, furnished asset in a core Business Bay location at a visible discount to both original price and recent transaction benchmarks, with the added benefit of a phased payment schedule.

LOCATION & TRANSPORT

Canal Bay is positioned directly on the Dubai Water Canal in Business Bay, a district known for its centrality and connectivity. The building’s location ensures direct access to the canal promenade, with walkable links to retail, dining, and leisure options along the waterfront. Business Bay’s road network connects efficiently to Sheikh Zayed Road, Al Khail Road, and Downtown Dubai, making commutes to DIFC, Dubai Mall, and City Walk practical for both residents and tenants. Public transport is available via Business Bay Metro Station and multiple bus routes, while taxis and ride-hailing services are readily accessible. For investors, the address appeals to a broad tenant pool: professionals working in Downtown or DIFC, young families, and short-stay visitors who prioritise centrality and canal-side living. The location also supports resale liquidity, as Business Bay remains one of Dubai’s most actively traded freehold zones.

AMENITIES & SURROUNDING

Canal Bay is a 22-storey residential tower completed in 2024, offering a contemporary living environment with a focus on waterfront lifestyle. Residents benefit from a range of amenities, including a swimming pool, fitness centre, landscaped podium areas, and secure basement parking. The building’s canal frontage provides direct access to the promenade, ideal for walking, jogging, or cycling. The surrounding area features a growing mix of cafes, restaurants, and convenience retail, supporting day-to-day needs without reliance on car journeys. Business Bay’s infrastructure is mature, with established schools, healthcare facilities, and supermarkets within a short drive. The proximity to Downtown Dubai and Dubai Mall adds further lifestyle depth, while the canal itself has become a focal point for leisure and community events. The building’s amenity profile is designed to appeal to both residents and tenants seeking a modern, well-serviced urban address.

MARKET

Recent Dubai Land Department records for Canal Bay show 2-bedroom units trading between AED 1,910 and AED 2,082 per sq.ft in Q2 2026, with transaction prices for similar-sized apartments ranging from AED 2,100,000 to AED 2,450,000. This distress deal’s AED 1,778 per sq.ft entry is visibly below these benchmarks, providing a clear pricing edge. The unit’s ready status and furnished condition are important, as Business Bay’s rental market is active and favours properties that can be leased immediately. The payment plan structure may also appeal to buyers seeking to optimise cash flow or leverage rental income against future instalments. Liquidity in Business Bay remains robust, with a diverse buyer base including investors, end-users, and corporate tenants. The main risk points are service charges, potential oversupply in the mid-market segment, and competition from newer launches. However, the combination of canal frontage, ready handover, and below-market pricing supports both rentability and resale prospects, provided the asset is managed actively.

CONCLUSION

For investors seeking immediate exposure to Business Bay’s canal-side market, this deal offers a clear value proposition: a completed, furnished two-bedroom apartment at a 22% discount to original price and below recent transaction levels. The phased payment plan adds flexibility, while the building’s location and amenity set support both rental and resale demand. The main diligence points are service charge levels, canal view orientation, and the pace of new supply in the area. If these factors align with the buyer’s risk profile, the case is for a practical, income-generating asset in a central Dubai location, acquired at a cleaner entry basis than most comparable stock. This is best suited to investors who value immediate usability, strong rental fundamentals, and a straightforward pricing discount in a well-established urban corridor.

Illustrative model

Scenario modeller

Set your own assumptions and see how DISTRESS DEAL: 2-BR IN CANAL BAY 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

CANAL BAY — Business Bay, Dubai

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