This 3-bedroom apartment in Bay Grove Residences, Building B6, is presented as a distress deal at AED 4,100,000. This price reflects an 18.6% discount from the original price of AED 5,038,800, equating to a saving of AED 938,800. With a built-up area of 2,060 sq.ft, the entry point stands at AED 1,990 per sq.ft. The unit is positioned on a low floor and offers a full sea view, with a balcony included. Handover is scheduled for Q1 2029, and the property is offered on a structured payment plan, with a significant portion payable on transfer and the remainder staggered through to completion. The immediate investment case is clear: this is a waterfront, off-plan asset by Nakheel, discounted against the original price, with a payment schedule that reduces upfront capital exposure. The buyer is securing a future-ready, sea-facing apartment in a master-planned island community, at a below-launch cost basis, with the flexibility of staged payments.
BAY GROVE RESIDENCES · Dubai Islands1 / 2Nakheel · Dubai Islands
DISTRESS DEAL: 3-BR IN BAY GROVE RESIDENCES
- Unit
- 3-BR
- Size
- 2,060 sq.ft
- Developer
- Nakheel
- Handover
- Q1 2029
The discount is measured against the original price + DLD recorded for this unit, not against a valuation.
This unit has sold. 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 9 June 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
- Payment to sellerAED 1,435,250
- DLD Transfer fee (4% of OP + 40 AED)AED 193,840
- DLD Registration Trustee fee + 5%VATAED 5,250
- Buyer's agent comission 2% + 5%VATAED 86,100
- Total on transferAED 1,720,440
- 15-SEP-2026AED 484,500
- 15-JAN-2027AED 484,500
- 15-MAY-2027AED 242,250
- On Handover (15-MAR-2029)AED 1,453,500
- Total remaining payment planAED 2,664,750
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Distress Deal
PROJECT DESCRIPTION
OVERVIEW
LOCATION & TRANSPORT
Bay Grove Residences is located on Dubai Islands, one of the city’s emerging master-planned coastal districts. The project is situated on Island B, which is among the closest islands to the Dubai mainland, providing more practical access compared to deeper island developments. Connectivity is supported by new road links to the Deira area and the wider Dubai road network, with direct routes to Downtown Dubai, Dubai International Airport, and the northern emirates. Public transport infrastructure is developing, but private vehicles, taxis, and ride-hailing services currently form the main transport options. For investors, the proximity to the mainland and established Deira communities means the project is not isolated, and future infrastructure improvements are likely to further enhance accessibility and tenant appeal.
AMENITIES & SURROUNDING
Bay Grove Residences is designed as a multi-building complex with a focus on waterfront living and community amenities. Residents will have access to an adults-only infinity pool, a separate children’s pool, barbecue areas, a clubhouse, residents’ lounge, co-working spaces, and a fitness centre equipped for cardio, strength, and yoga. Additional features include a running track, cycle paths, shaded seating, sun loungers, and a pet wash station. Apartments are finished with floor-to-ceiling windows, terraces, and in-built storage, with engineered stone countertops and lacquer cabinetry in kitchens. The development is linked by a green podium, enhancing the sense of community and providing landscaped outdoor spaces. The surrounding Dubai Islands master plan is set to include retail, leisure, and hospitality offerings, supporting the long-term liveability and investment profile of the area.
MARKET
At AED 1,990 per sq.ft, this unit is priced above some recent transactions in Bay Grove Residences for smaller units, but the full sea view, larger layout, and payment plan structure differentiate it from standard offerings. Recent sales in the project include 2-bedroom units trading between AED 1,393 and AED 2,295 per sq.ft, indicating a range based on size, view, and building. The 3-bedroom format with sea views is likely to attract a mix of end-users and investors seeking waterfront positioning without the premium of more established areas like Palm Jumeirah. The off-plan nature introduces construction and handover risk, but the developer, Nakheel, has a track record of delivering large-scale projects. Rentability will depend on the pace of area development and the completion of supporting infrastructure, but the waterfront setting and amenity package should underpin demand. Liquidity may be moderate in the early years, with stronger resale prospects as the Dubai Islands district matures and occupancy levels rise. The main risk points are construction timelines, service charge levels, and the speed at which the wider area achieves critical mass.
CONCLUSION
This distress deal offers an investor a discounted entry into a waterfront, off-plan asset by a recognised developer, with a payment plan that reduces initial capital outlay. The full sea view and three-bedroom layout provide both end-user and rental appeal, while the location on Dubai Islands positions the asset for future upside as the district develops. The main considerations are the long handover timeline, the evolving nature of the surrounding area, and the need to monitor service charge and infrastructure progress. For buyers comfortable with off-plan risk and seeking exposure to Dubai’s next-generation coastal district, this deal provides a below-launch entry point with flexible payment terms. The investment case is strongest for those willing to take a medium-term view, balancing the discount and payment plan against the timeline to completion and area maturity.
Location
BAY GROVE RESIDENCES — Dubai Islands
Illustrative model
Scenario modeller
Set your own assumptions and see how DISTRESS DEAL: 3-BR IN BAY GROVE RESIDENCES behaves as a cash purchase, the same purchase mortgaged, or a capital-only resale.
Enter the asking price to run the model.
Every figure recalculates as you type. Use the price you are considering.
Method
- 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 Commercial Real Estate is a trading brand; the RERA-licensed broker is Stephen James Mitchell, BRN 68593.
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