Distress Deal
On this page
The numbers
| UNIT PRICE | AED 3,000,000 |
| Payment to seller | AED 1,591,655 |
| DLD Transfer fee (4% of OP + 40 AED) | AED 140,875 |
| Trustee Office Fee | AED 5,250 |
| Buyer's Agency Commission (2% + VAT) | AED 63,000 |
| 10-09-2026 | AED 352,086 |
| On Handover | AED 1,056,259 |
| Total on Transfer | AED 1,800,780 |
| Total remaining Payment Plan | AED 1,408,345 |
| TOTAL COST FOR BUYER | AED 3,209,125 |
Layout
Distress Deal
This is a three-bedroom apartment in Iluka Residences, the MS Homes development on Dubai Islands, measuring 1,535 sq.ft between the 3rd and 5th floors with a water view and a private pool on the balcony. The asking price is AED 3,000,000 against an original price plus DLD of AED 3,661,698, a reduction of AED 661,698 or 18.1% below original price. On 1,535 sq.ft of built-up area that is AED 1,954 per square foot. The buyer settles AED 1,800,780 at transfer, of which AED 1,591,655 goes to the seller, and then carries AED 1,408,345 in two payments: AED 352,086 on 10 September 2026 and AED 1,056,259 on handover. Total cost to the buyer is AED 3,209,125, with handover scheduled for Q4 2026.
Dubai Islands is the reclaimed island group off the Deira waterfront, formerly the Deira Islands, now being redeveloped with hotels, beaches and residential towers. Bridge access connects to Deira, with Al Khaleej Road carrying traffic south into the old city and towards the Al Shindagha Tunnel and the creek crossings. Gold Souk and Palm Deira metro stations on the Green Line serve the mainland. Dubai International Airport is roughly fifteen minutes by car, an unusually short airport run for a Dubai residential district. The islands are delivering in phases, and while beach and marina amenity is central to the masterplan, a buyer should verify on site which elements nearest a given building are finished and which are still to come. The short airport run is a genuine commercial attribute for a unit intended for short-stay or corporate letting rather than a long family lease.
Iluka Residences is a low-rise development by MS Homes, and this unit carries a private pool on the balcony together with a water view from the 3rd to 5th floor band. Buildings of this type on Dubai Islands typically add a communal pool deck, a gymnasium, landscaped podium space and covered parking. The wider masterplan is planned around public beaches, a marina, resort hotels and a waterfront promenade. Across the bridge, Deira brings the gold and spice souks, the creek abras and a dense established retail and dining offer, with Dubai Festival City further south. A three-bedroom apartment at this size on the islands is comparatively scarce, most of the new stock being one and two bedrooms. The balcony pool carries its own maintenance obligation, and how that is treated in the service charge should be confirmed before purchase.
An 18.1% reduction against original price plus DLD is a substantial discount, and AED 1,954 per square foot for a three-bedroom water-view apartment on Dubai Islands is competitive against the beachfront towers in the same district. The handover date of Q4 2026 is imminent, which shortens the risk window considerably: a buyer is weeks rather than years from completion. The payment schedule matches, with only two instalments left. The considerations are the district's delivery pace and the fact that three-bedroom stock is a narrower resale market than one and two-bedroom units, though that same scarcity supports rent from families who want island living without moving to a villa. Because handover is so close, a buyer should ask for the current completion certificate position rather than relying on the quarter given in the listing.
This is one for a buyer who wants a large apartment on Dubai Islands close to completion. The 18.1% discount is material, the water view and balcony pool are genuine differentiators, and Q4 2026 handover means a short wait before the unit can be let or occupied. The cautions are the pace at which the surrounding island amenity completes and the narrower resale pool for three-bedroom apartments. Every figure on this page comes from the seller's published listing. Confirm the completion status, the service charge and the balcony pool maintenance terms with us before you act, and we can arrange an introduction to the seller's agent. We can also confirm the expected service charge and the handover specification.
Illustrative model
Set your own assumptions and see how DISTRESS DEAL: 3-BR IN ILUKA RESIDENCES 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.
Set service charge, maintenance & management, vacancy allowance above to see cash back — until then this figure would be assuming zero for them.
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.
Figures marked “—” need service charge, maintenance & management, vacancy allowance entered above — we do not compute them on an assumed zero.
| Year | Net operating income | Sale proceeds, net | Net cash flow |
|---|---|---|---|
| 0 · today | — | — | −AED 3,183,000 |
| 1 | AED 0 | — | AED 0 |
| 2 | AED 0 | — | AED 0 |
| 3 | AED 0 | — | AED 0 |
| 4 | AED 0 | — | AED 0 |
| 5 | AED 0 | AED 2,937,000 | AED 2,937,000 |
| Years 1–5 | AED 0 | AED 2,937,000 | AED 2,937,000 |
| Less the year-0 outflow of AED 3,183,000 → total profit | −AED 246,000 | ||
Exit at year 5: illustrative sale price AED 3,000,000 less selling costs AED 63,000 = AED 2,937,000 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. This audit table is arithmetic, so every row must resolve to a number — but service charge, maintenance & management, vacancy allowance are not set above, and the figures here currently assume zero for them. Nothing on this table should be read as a result until you set them; the headline tiles above withhold theirs for exactly this reason.
| Exit growth | Exit price | Total profit | ROI | IRR |
|---|---|---|---|---|
| −5% p.a. | AED 2.32M | — | — | — |
| −3% p.a. | AED 2.58M | — | — | — |
| 0% p.a.your figure | AED 3M | — | — | — |
| 3% p.a. | AED 3.48M | — | — | — |
| 5% p.a. | AED 3.83M | — | — | — |
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.
Set service charge, maintenance & management, vacancy allowance above and we can email you this scenario. Until then every headline figure reads “—”, because the model would otherwise be assuming zero for them — and we publish no figure for them.
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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