Distress Deal
On this page
The numbers
| UNIT PRICE | AED 6,950,000 |
| Payment to seller | AED 1,992,912 |
| DLD Transfer fee (4% of OP + 40 AED) | AED 330,440 |
| Trustee Office Fee | AED 5,250 |
| Buyer's Agency Commission (2% + VAT) | AED 145,950 |
| 24-09-2026 | AED 826,181 |
| 23-03-2027 | AED 826,181 |
| On Handover | AED 3,304,726 |
| Total on Transfer | AED 2,474,552 |
| Total remaining Payment Plan | AED 4,957,088 |
| TOTAL COST FOR BUYER | AED 7,431,640 |
Layout
Distress Deal
This is a four-bedroom villa in Sobha Elwood, in Dubailand. The plot measures 6,199 sq.ft with a built-up area of 5,007 sq.ft over ground plus one floor, and the villa has a balcony, private parking and a private pool. The asking price is AED 6,950,000 against an original price plus DLD of AED 8,590,400, a reduction of AED 1,640,400 or 19.1% below original price, a reduction of more than AED 1.6 million in absolute terms and a substantial one in percentage terms. On 5,007 sq.ft of built-up area that is AED 1,388 per square foot. The buyer settles AED 2,474,552 at transfer, of which AED 1,992,912 goes to the seller, and carries AED 4,957,088 across three further payments, for a total cost of AED 7,431,640. Handover is scheduled for July 2028.
Sobha Elwood sits in the Dubailand band along Al Ain Road, in the corridor running south-east from Dubai Silicon Oasis towards the Al Ain highway. Access is via Al Ain Road and Sheikh Mohammed Bin Zayed Road, with Emirates Road providing the eastern connection. Downtown Dubai is around twenty-five to thirty minutes by car outside peak hours, and Dubai International Airport a similar distance to the north. Global Village, IMG Worlds of Adventure and the Dubai Outlet Mall lie within the same corridor. The community is car-dependent with no metro access. This part of Dubailand has seen significant villa and townhouse delivery, and road capacity on Al Ain Road is a live consideration at peak times. Al Ain Road is also the main route towards Al Ain and the eastern emirates, which gives the corridor a through-traffic character at weekends.
Sobha Elwood is planned as a villa community organised around tree-lined landscaping, with the developer's masterplan built on a substantial planted area and a network of parks, trails and water features. The villa itself has a private pool, covered parking, a balcony and a ground-plus-one layout across 5,007 sq.ft of built-up area on a 6,199 sq.ft plot, so the garden is genuinely usable rather than nominal. Sobha's build quality across its Dubai projects, in particular at Sobha Hartland, is a recognised part of what its villas are priced on. Schools, clinics and retail serving the corridor are concentrated around Dubai Silicon Oasis and Academic City to the north, with Dubai Outlet Mall the nearest large retail destination. As with any off-plan villa, the specification schedule and the finishes actually contracted for should be checked against the marketing material before purchase.
A 19.1% reduction on a four-bedroom Sobha villa is a substantial reduction for a villa from this developer, and AED 1,388 per square foot on built-up area is low for a pool-equipped villa from this developer. The reason is almost certainly the payment profile rather than the asset: AED 4,957,088 remains after transfer, including AED 3,304,726 falling due on handover in July 2028, so a buyer takes on a substantial forward commitment nearly two years out. That is the risk to price in. Against it, the discount is real money, the plot exceeds the built-up area, and demand for large family villas in the Dubailand corridor has been driven by end-users rather than short-hold investors, which tends to make values steadier. A buyer should also confirm whether the developer permits assignment before handover, because that determines whether the position can be sold on without completing.
This suits a buyer with a two-year horizon and the balance sheet to meet a AED 3.3m handover payment in July 2028. The specification is generous, the price per square foot is low for the developer, and the reduction against original price is AED 1,640,400, or 19.1%. The caution is the size and timing of the forward commitment, and the corridor's exposure to continuing villa supply. Every figure comes from the seller's published listing. Confirm the construction status, the milestone triggers and whether the developer will accept an assignment with us before you act. We can also obtain the villa floor plans and the community masterplan showing this plot.
Illustrative model
Set your own assumptions and see how DISTRESS DEAL: 4-BR IN SOBHA ELWOOD 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 7,373,950 |
| 1 | AED 0 | — | AED 0 |
| 2 | AED 0 | — | AED 0 |
| 3 | AED 0 | — | AED 0 |
| 4 | AED 0 | — | AED 0 |
| 5 | AED 0 | AED 6,804,050 | AED 6,804,050 |
| Years 1–5 | AED 0 | AED 6,804,050 | AED 6,804,050 |
| Less the year-0 outflow of AED 7,373,950 → total profit | −AED 569,900 | ||
Exit at year 5: illustrative sale price AED 6,950,000 less selling costs AED 145,950 = AED 6,804,050 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 5.38M | — | — | — |
| −3% p.a. | AED 5.97M | — | — | — |
| 0% p.a.your figure | AED 6.95M | — | — | — |
| 3% p.a. | AED 8.06M | — | — | — |
| 5% p.a. | AED 8.87M | — | — | — |
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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