Distress Deal

DISTRESS DEAL: 2-BR IN PALACE RESIDENCES CREEK BLUE

Asking PriceAED 3,443,090

Below Original Price4.6%

Size1,233 sq.ft

Bedrooms2

Price / Sq.FtAED 2,792

HandoverQ1 2029

Sold

Listed 13 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 13 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 3,443,090

PAYMENTS ON TRANSFER

1. Payment to seller	AED 1,277,158
2. DLD Transfer fee 4% + 40 AED	AED 137,764
3. DLD Registration Trustee fee + 5% VAT	AED 5,250
4. Buyer's agent commission 2% + 5% VAT	AED 72,304

PAYMENT PLAN SCHEDULE

14-Apr-2026	AED 360,989
27-Dec-2026	AED 360,989
7-Aug-2027	AED 360,989
16-Nov-2027	AED 180,494
17-Mar-2028	AED 180,494
30-Jul-2028	AED 360,989
100% Construction (31-Mar-2029)	AED 360,988

SUMMARY

Total on Transfer	AED 1,492,476
Total remaining Payment Plan	AED 2,165,932
TOTAL COST FOR BUYER	AED 3,658,408

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Distress Deal

PROJECT DESCRIPTION

OVERVIEW

This is a distress deal for a two-bedroom apartment in Palace Residences Creek Blue, Dubai Creek Harbour, offered at AED 3,443,090. The reference price for this unit was AED 3,610,000, so the current asking reflects a 4.6% discount, or AED 166,910 below the original price. The apartment covers 1,233 sq.ft, placing the entry basis at approximately AED 2,792 per sq.ft. This is a mid-rise unit (floors 2–6) with a sea view and balcony, and is scheduled for completion in Q1 2029. The payment structure is staged, with a significant portion due on transfer and the remainder spread across construction milestones up to handover. The immediate investment thesis is a below-market entry into a branded Emaar development, with a payment plan that reduces upfront capital exposure and aligns with construction progress. The buyer is not exposed to immediate vacancy or operational risk, but is taking a position on the future value and rentability of a branded residence in a maturing waterfront district.

LOCATION & TRANSPORT

Palace Residences Creek Blue is located within Dubai Creek Harbour, a large-scale master-planned community by Emaar. The area is positioned along the waterfront, with direct views toward the Creek and the Downtown skyline. Access to the wider city is via Ras Al Khor Road and Al Khail Road, providing connections to Downtown Dubai, Business Bay, and Dubai International Airport. Public transport options in Creek Harbour are developing, with planned metro links and existing bus routes, but private car and ride-hailing remain the primary modes for residents. The district is designed to be walkable, with promenades, parks, and retail zones integrated into the master plan. For investors, this location offers a balance between proximity to the city’s core and the appeal of a new waterfront environment, which is expected to mature further as more phases are delivered.

AMENITIES & SURROUNDING

Palace Residences Creek Blue is a branded residential project developed in partnership with Palace Hotels & Resorts, part of Emaar Hospitality Group. The development is planned as a multi-building complex, with two towers and a total of approximately 592 units. Residents will have access to amenities consistent with the Palace brand, including swimming pools, fitness facilities, landscaped gardens, children’s play areas, and concierge services. The project is designed to reflect a blend of Middle Eastern and contemporary aesthetics, with hospitality-style services and communal spaces. The wider Creek Harbour district offers retail outlets, waterfront promenades, parks, and planned cultural attractions. As the area matures, infrastructure such as schools, healthcare, and additional retail is expected to support long-term residential demand. The immediate surroundings are still under development, but the master plan aims to deliver a self-contained, high-amenity environment.

MARKET

At AED 2,792 per sq.ft, this unit is positioned above the average for generic Dubai apartments, but in line with branded, waterfront developments by Emaar. Branded residences in Dubai typically command a premium due to their association with hospitality services and perceived quality. The payment plan structure is standard for off-plan Emaar projects, with a 10% down payment and staged installments. The main investor case is capital appreciation as Creek Harbour matures and branded supply remains limited. Rentability will depend on the pace of district completion and the absorption of new supply, but the Palace brand and waterfront positioning should support demand from both end-users and tenants seeking a serviced environment. Liquidity risk is moderate: while Emaar projects are generally well received, resale before handover can be sensitive to market cycles and construction progress. The main risk points are construction timeline, future service charges, and the pace at which the wider Creek Harbour ecosystem is delivered.

CONCLUSION

This deal is best suited for an investor seeking below-market entry into a branded Emaar project with a manageable payment plan and a long-term view. The 4.6% discount provides a visible entry advantage, and the Palace brand supports both future rentability and resale positioning. The main considerations are the construction timeline (with handover in Q1 2029), the evolving nature of Creek Harbour, and the typical risks of off-plan investment. For buyers comfortable with a staged payment structure and a medium-term horizon, this unit offers a credible case for capital appreciation and future rental income in one of Dubai’s most ambitious waterfront districts. As always, investors should review the payment schedule, service charge estimates, and district progress before committing, but the fundamentals of location, brand, and pricing are aligned for a disciplined, forward-looking acquisition.

Illustrative model

Scenario modeller

Set your own assumptions and see how DISTRESS DEAL: 2-BR IN PALACE RESIDENCES CREEK BLUE 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

PALACE RESIDENCES CREEK BLUE — Creek Harbour, Dubai

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