Distress Deal
On this page
The numbers
| UNIT PRICE | AED 8,900,000 |
| Payment to seller | AED 3,278,000 |
| DLD Transfer fee (4% of OP + 40 AED) | AED 374,840 |
| Trustee Office Fee | AED 5,250 |
| Buyer's Agency Commission (2% + VAT) | AED 186,900 |
| On Handover | AED 5,622,000 |
| Total on Transfer | AED 3,844,990 |
| Total remaining Payment Plan | AED 5,622,000 |
| TOTAL COST FOR BUYER | AED 9,466,990 |
Layout
Distress Deal
This is a five-bedroom villa in Lua Residence, the Swank development in Mohammed Bin Rashid City District 11. The plot measures 4,850 sq.ft with a built-up area of 5,732 sq.ft over ground plus two floors, and the villa carries a balcony, private parking and a private pool. The asking price is AED 8,900,000 against an original price plus DLD of AED 9,744,800, a reduction of AED 844,800 or 8.7% below original price. On the built-up area of 5,732 sq.ft that is AED 1,553 per square foot. The buyer settles AED 3,844,990 at transfer, of which AED 3,278,000 goes to the seller, and takes on a single remaining instalment of AED 5,622,000 due on handover, bringing the total cost to AED 9,466,990. Handover is scheduled for Q1 2027.
Mohammed Bin Rashid City District 11 sits inland between Al Khail Road and Ras Al Khor Road, in the band of villa communities that has grown up south of Meydan. The position puts Downtown Dubai and the Burj Khalifa around fifteen minutes away by car, with Dubai International Airport a similar distance to the north-east. Meydan Racecourse, the Meydan One development and the Ras Al Khor Wildlife Sanctuary are all close neighbours. Al Khail Road provides the main artery north towards Business Bay and south towards Dubai Hills and Al Quoz. The district is designed around private vehicle access, with no metro station nearby, which is standard for villa communities in this part of the city.
Lua Residence is a contemporary villa development, and the unit's own amenity set is the substance of the offer: a private pool, covered parking, a balcony and a ground-plus-two layout that gives genuine separation between living and sleeping floors on a 5,732 sq.ft built-up area. District 11 as a whole is planned around landscaped streets, community parks and a crystal lagoon, in keeping with the wider Mohammed Bin Rashid City masterplan. Schools, clinics and supermarkets serving the district are established in the neighbouring Meydan and Nad Al Sheba communities. The Meydan Hotel, its golf course and the racecourse grandstand sit a short drive north, and the retail and dining of Downtown Dubai are well within reach for residents. Al Khail Avenue Mall and the Nad Al Sheba retail strip cover day-to-day shopping, and Dubai Hills Mall is a short drive west along Al Khail Road.
Five-bedroom villas with a private pool in the Mohammed Bin Rashid City band compete against Dubai Hills, Nad Al Sheba and Meydan stock, and the entry point here of AED 1,553 per square foot on built-up area is modest for a villa of this specification. The 8.7% gap to original price reflects a seller wanting out before the final payment falls due rather than distress in the underlying project. The structure is the thing to weigh: the buyer pays AED 3.84m at transfer and then a single AED 5.62m balloon on handover in Q1 2027, so the purchase needs the balance either in cash or in committed finance well before completion. Demand for large family villas in this corridor has been supported by end-users rather than short-hold investors. District 11 is one of the later phases of Mohammed Bin Rashid City to come forward, so a buyer is taking a position while the surrounding plots are still being built out. That has historically meant construction traffic and noise for the first residents, and it is worth inspecting the immediate neighbours before committing.
This suits a family buyer or a long-hold investor who wants a large, pool-equipped villa in the Mohammed Bin Rashid City corridor at a discount to the original price and has the balance sheet for a single large completion payment. The specification is generous for the price per square foot, and the Q1 2027 handover means the wait is short. The caution is the payment shape: nearly two-thirds of the total cost lands on handover, and a buyer without committed finance is exposed if the date moves. All figures are taken from the seller's published listing and should be verified with us. We can obtain the villa's floor plans, the developer's construction status and an introduction to the seller's agent. We can also confirm whether the developer will accept an assignment before handover.
Illustrative model
Set your own assumptions and see how DISTRESS DEAL: 5-BR IN LUA RESIDENCE 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 9,442,900 |
| 1 | AED 0 | — | AED 0 |
| 2 | AED 0 | — | AED 0 |
| 3 | AED 0 | — | AED 0 |
| 4 | AED 0 | — | AED 0 |
| 5 | AED 0 | AED 8,713,100 | AED 8,713,100 |
| Years 1–5 | AED 0 | AED 8,713,100 | AED 8,713,100 |
| Less the year-0 outflow of AED 9,442,900 → total profit | −AED 729,800 | ||
Exit at year 5: illustrative sale price AED 8,900,000 less selling costs AED 186,900 = AED 8,713,100 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 6.89M | — | — | — |
| −3% p.a. | AED 7.64M | — | — | — |
| 0% p.a.your figure | AED 8.90M | — | — | — |
| 3% p.a. | AED 10.3M | — | — | — |
| 5% p.a. | AED 11.4M | — | — | — |
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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