Distress Deal

DISTRESS DEAL: 2-BR IN DAMAC BAY 2

Asking PriceAED 2,950,000

Below Original Price23.6%

Size1,002 sq.ft

Bedrooms2

Price / Sq.FtAED 2,944

HandoverQ4 2028

Sold

Listed 15 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 15 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 2,950,000

PAYMENTS ON TRANSFER

1. Payment to seller	AED 797,620
2. DLD Transfer fee 4% + 40 AED	AED 118,040
3. DLD Registration Trustee fee + 5% VAT	AED 5,250
4. Buyer's agent commission 2% + 5% VAT	AED 61,950

PAYMENT PLAN SCHEDULE

21-APR-2026	AED 74,220
21-JUL-2026	AED 74,220
21-OCT-2026	AED 74,220
21-JAN-2027	AED 74,220
21-OCT-2027	AED 74,220
21-JAN-2028	AED 74,220
21-APR-2028	AED 74,220
21-JUL-2028	AED 74,220
21-OCT-2028	AED 74,220
On Handover	AED 1,484,400

SUMMARY

Total on Transfer	AED 982,860
Total remaining Payment Plan	AED 2,152,380
TOTAL COST FOR BUYER	AED 3,135,240

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Distress Deal

PROJECT DESCRIPTION

OVERVIEW

This two-bedroom apartment in Damac Bay 2 is offered as a distress deal at AED 2,950,000, reflecting a 23.6% discount from the original price of AED 3,859,440. The unit measures 1,002 sq.ft, which sets the entry price at approximately AED 2,944 per sq.ft. The apartment is situated on a low floor and offers community and marina skyline views, with a balcony and dedicated parking included. The handover is scheduled for Q4 2028, positioning this as an off-plan acquisition with a clear payment schedule extending through to completion. The immediate investment case is the significant discount to the original price, providing a lower cost basis in a branded beachfront development by Damac, with interiors designed by Cavalli. For investors, this is a chance to secure a future-ready asset in a high-profile waterfront project at a below-market entry point, with the flexibility of a staged payment plan.

LOCATION & TRANSPORT

Damac Bay 2 is located in Dubai Harbour, a rapidly developing area positioned between Dubai Marina and Palm Jumeirah. The site benefits from direct access to Sheikh Zayed Road, making it accessible to the wider city, including business hubs like Dubai Media City and Downtown Dubai. Public transport options are evolving in this district, but private vehicles, taxis, and ride-hailing services remain the primary means of access for residents and visitors. The proximity to Dubai Marina and the planned infrastructure in Dubai Harbour are expected to enhance connectivity further as the area matures. For investors, this location offers a blend of waterfront lifestyle and practical access to key commercial and leisure destinations, supporting both end-user and rental demand.

AMENITIES & SURROUNDING

Damac Bay 2 is part of a multi-tower complex developed in partnership with the Cavalli brand, known for its distinctive fashion-inspired interiors and nautical themes. Residents will have access to a range of amenities, including private beach areas, rooftop pools with floating workstations, an Opera Pavilion for live performances, and a central water fountain synchronised with events. The towers are designed to maximise sea views from every unit. Additional features include children’s educational water installations, landscaped gardens, fitness facilities, and a variety of food and beverage outlets. The surrounding Dubai Harbour area is set to offer marina berths, retail, and leisure attractions, complementing the in-house amenities and supporting a lifestyle-oriented residential environment.

MARKET

At an entry price of AED 2,950,000, this two-bedroom unit is positioned below the typical launch and resale prices for comparable branded waterfront apartments in Dubai Harbour and Dubai Marina. The Cavalli partnership and the scale of amenities place Damac Bay 2 in the upper tier of off-plan offerings, appealing to buyers seeking both lifestyle and brand association. The off-plan nature introduces construction and handover timing risks, but the substantial discount provides a buffer against market fluctuations. Rental demand in Dubai Harbour is expected to strengthen as the area completes, with waterfront and branded residences typically attracting both short-term and long-term tenants. Liquidity on resale will depend on overall market conditions at handover, but the combination of a recognised developer, branded interiors, and a discounted entry price should support both end-user and investor exit strategies. Key risk points include the long timeline to completion, evolving area infrastructure, and the need to monitor service charges and future supply in the district.

CONCLUSION

This distress deal in Damac Bay 2 offers investors a discounted entry into a branded, amenity-rich waterfront project with a clear payment plan and a handover scheduled for Q4 2028. The pricing is visibly below the original launch, providing a margin of safety for those willing to underwrite construction and market risks. The location in Dubai Harbour supports a broad tenant and buyer profile, while the Cavalli design and extensive amenities enhance the project's appeal. The main considerations are the long lead time to completion and the evolving nature of the surrounding area, but for buyers seeking future exposure to Dubai’s branded waterfront segment at a reduced cost basis, this deal presents a balanced proposition. Careful review of payment schedules, developer progress, and area infrastructure is advised prior to commitment, but the fundamentals support a disciplined investment case in the context of Dubai’s maturing residential market.

Illustrative model

Scenario modeller

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

DAMAC BAY 2 — Beachfront, Dubai

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