Distress Deal
On this page
The numbers
| UNIT PRICE | AED 2,500,000 |
| Payment to seller | AED 1,932,210 |
| DLD Transfer fee (4% of OP + 40 AED) | AED 98,962 |
| Trustee Office Fee | AED 5,250 |
| Buyer's Agency Commission (2% + VAT) | AED 52,500 |
| 80% construction | AED 49,460 |
| 90% construction | AED 23,730 |
| On Handover | AED 494,600 |
| Total on Transfer | AED 2,088,922 |
| Total remaining Payment Plan | AED 567,790 |
| TOTAL COST FOR BUYER | AED 2,656,712 |
Layout
Distress Deal
This is a four-bedroom townhouse in Mykonos, the DAMAC cluster within DAMAC Lagoons. The plot measures 1,548 sq.ft with a built-up area of 2,282 sq.ft over ground plus one floor, with a balcony and private parking. The asking price is AED 2,500,000 against an original price plus DLD of AED 2,571,960, a reduction of AED 71,960 or 2.8% below original price. On the built-up area of 2,282 sq.ft that is AED 1,096 per square foot. The buyer settles AED 2,088,922 at transfer, of which AED 1,932,210 goes to the seller, and takes on AED 567,790 across three further instalments tied to construction milestones and handover, for a total cost of AED 2,656,712. Handover is scheduled for March 2027.
DAMAC Lagoons sits in the Dubailand band west of Al Qudra Road, directly opposite DAMAC Hills and adjacent to the wider Dubai Land Residence corridor. Access is via Hessa Street and Sheikh Zayed Bin Hamdan Al Nahyan Street, with Sheikh Mohammed Bin Zayed Road carrying traffic north towards Dubai Marina and south towards Expo City. Dubai Marina and Jumeirah Golf Estates are around twenty minutes by car, Downtown Dubai around thirty, and Al Maktoum International Airport roughly twenty-five to the south-west. The community is car-dependent with no metro access, which is typical of the townhouse and villa communities in this corridor and is reflected in the price per square foot. Al Maktoum International and the Expo City district to the south-west are the longer-term infrastructure story for this corridor, and both are still developing.
DAMAC Lagoons is built around a swimmable lagoon system, with each cluster themed on a Mediterranean destination; Mykonos is one of those clusters. The masterplan is planned around water features, beaches, waterside boardwalks, sports courts and community pools, with retail and food and beverage units integrated into the central amenity zones. The townhouse itself has a balcony, private parking and a ground-plus-one layout across 2,282 sq.ft of built-up area, which gives four bedrooms genuine room. DAMAC Hills, immediately adjacent, brings the Trump International Golf Club, an established retail strip and schools into easy reach. Wider schooling and healthcare in the corridor are concentrated around Dubai Sports City and Motor City to the north. Because the lagoon and its beaches are the reason the community prices where it does, the delivery status of the amenity zones nearest this cluster is worth checking on site rather than taking from the masterplan drawings.
At AED 1,096 per square foot on built-up area, this is a low entry point for a four-bedroom townhouse, and four-bedroom townhouse stock in the Dubailand corridor competes primarily on that figure. The discount of 2.8% below original price is small, so the case rests on the underlying price rather than the reduction. The payment structure is favourable to a buyer with cash: over three-quarters of the total cost settles at transfer and only AED 567,790 remains, most of it at handover in March 2027. DAMAC Lagoons is a large masterplan still delivering, and the volume of townhouse stock coming forward across the corridor is the principal risk to values and to rent. Demand has been driven by families priced out of Arabian Ranches and DAMAC Hills. Townhouses of this size in the corridor have historically attracted families on medium-term leases rather than short-hold investors, which tends to make rents steadier but resale slower.
This townhouse suits a buyer who wants four bedrooms and a lagoon-community address at the lower end of the per-square-foot range, and who can settle most of the price at transfer. The March 2027 handover is close, the remaining commitment is modest, and the DAMAC Lagoons amenity programme is the draw. The reservations are that the discount to original price is slight, the community is car-dependent, and a great deal of similar stock is being delivered in the same corridor. All figures are taken from the seller's published listing. Confirm the construction status, the service charge and the exact milestone triggers with us before acting, and we can arrange an introduction to the seller's agent. We can also confirm which lagoon phases are complete and which are still under construction.
Illustrative model
Set your own assumptions and see how DISTRESS DEAL: 4-BR IN MYKONOS 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.
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 2,652,500 |
| 1 | AED 0 | — | AED 0 |
| 2 | AED 0 | — | AED 0 |
| 3 | AED 0 | — | AED 0 |
| 4 | AED 0 | — | AED 0 |
| 5 | AED 0 | AED 2,447,500 | AED 2,447,500 |
| Years 1–5 | AED 0 | AED 2,447,500 | AED 2,447,500 |
| Less the year-0 outflow of AED 2,652,500 → total profit | −AED 205,000 | ||
Exit at year 5: illustrative sale price AED 2,500,000 less selling costs AED 52,500 = AED 2,447,500 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 1.93M | — | — | — |
| −3% p.a. | AED 2.15M | — | — | — |
| 0% p.a.your figure | AED 2.50M | — | — | — |
| 3% p.a. | AED 2.90M | — | — | — |
| 5% p.a. | AED 3.19M | — | — | — |
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.
More deals
The most recently listed deals that were still available when we last checked. Sold units are not shown here.
DAMAC Sun City
Healthcare City Phase II
Arjan
The Valley
Saadiyat Island, Abu Dhabi
Emaar South
Read next
A discounted unit is bought the same way any other is — the questions are just sharper. These are our own guides and articles on buying from overseas, taking on a resale or an off-plan assignment, and what the purchase actually costs.
The gold rule under an entry is its length, against the longest piece here.
How to Buy Dubai Property from Overseas
Power of attorney, attestation country by country, remote AML checks, funding the purchase, and remote signing against a short trip.
How to Buy Ready (Secondary) Property in Dubai
The fixed sequence the Land Department sets for a resale — an agreed Form F, a deposit, a developer NOC and the Trustee Office transfer.
Pre-Handover Assignment (Off-Plan ‘Flipping’) in Dubai: How It Works
Assigning an off-plan unit before handover — the developer NOC and minimum-paid rules, the fees that come off the profit, and when it still loses money.
Off-Plan Payment Plans in Dubai Explained: 10/90, 50/50 and Post-Handover
Construction-linked and post-handover structures, what escrow protects at each stage, and what happens if a later instalment cannot be funded.
NOC (No Objection Certificate) for a Dubai Property Purchase
What the developer’s certificate actually confirms, how service-charge clearance runs through Mollak, and the usual reasons issuance is delayed.
How to Vet a Dubai Developer Before You Buy
Brochures are marketing; DLD registration, project escrow status and broker licensing are checkable public facts. How to verify all three.
A Due-Diligence Checklist for Buying in Dubai
Who owns the title, whether the unit carries a mortgage or a restriction, whether its service charges are current — in order, with the tool that verifies each.
The True Cost of Buying Property in Dubai: All Fees Explained
Every fee set out individually — transfer, trustee office, agency commission, developer NOC and the mortgage costs — against the Land Department’s own published figures.
Mortgages for Non-Residents in Dubai
What a genuine non-resident can borrow, as distinct from a UAE-resident expatriate, which banks lend, and how a purchase is completed remotely.
Capital Gains & Property Tax in Dubai: What Investors Actually Pay
What an individual owner is and is not charged here, which transaction cost is the real one, and why your home-country position is a separate question.
How to Buy a Cancellation Unit in Dubai: Strategic Guide
A cancellation unit is a launch booking the first buyer lost — how they reach the market, and the steps to secure one at launch pricing.
How to Buy Dubai Property During Crisis and Build a Portfolio at Peak Fear
The historical entry points, yields by district, and a contrarian acquisition process for buying when confidence is at its lowest.
Buying a Resale Property in Dubai: Step-by-Step Guide for Investors
The process, the legal steps, the costs and the mortgage options, for residents and international investors alike.
How to Buy Property in Dubai as a Foreign Investor: Step-By-Step Guide
Costs, the legal process, the risks, and how to structure the investment — written for a buyer outside the UAE.
Buying Off-Plan Property in Dubai: Primary Market Guide
EOIs, SPAs, payment plans, Oqood, escrow, resales and mortgages — the primary market end to end.
Residential Mortgages in Dubai: Guide for Expats and Investors
Rates, loan-to-value limits, eligibility, fees and the documents a lender asks for, for residents and investors.
