Distress Deal
Available when we last checked on 3 August 2026. The asking price shown is the one published when the listing was added on 21 May 2026, 74 days before that check, and it is not re-checked against the market automatically. Confirm availability and price with us before you act on it.
On this page
The numbers
| UNIT PRICE | AED 23,500,000 |
| 1. Payment to seller | AED 10,842,000 |
| 2. DLD Transfer fee 4% + 40 AED | AED 940,040 |
| 3. DLD Registration Trustee fee + 5%VAT | AED 5,250 |
| 4. Buyer's agent commission 2% + 5%VAT | AED 504,000 |
| 01-JUN-2026 | AED 1,265,800 |
| 01-SEP-2026 | AED 1,265,800 |
| On Handover | AED 10,126,400 |
| Total on Transfer | AED 12,280,790 |
| Total remaining Payment Plan | AED 12,658,000 |
| TOTAL COST FOR BUYER | AED 24,938,790 |
Photography
Distress Deal
This 6-bedroom villa in Karl Lagerfeld Villas, Wadi Al Safa 3, is offered as a distress deal at AED 23,500,000. The original price, including DLD fees, was AED 26,328,640, so the current asking reflects an 8.8% discount. The built-up area is 13,006 sq.ft, with a price per square foot of AED 1,807. Handover is scheduled for Q3 2027, and the developer is Taraf. The payment structure is split between an initial transfer and a staged plan through to completion, which may suit buyers seeking to manage capital outlay over time. The immediate investment case is the below-market entry for a branded, large-format villa in a project with a limited number of units and a fashion-led design identity. The buyer is not taking on early-stage construction risk, as enabling works and main contracting are already underway, but should still factor in the usual off-plan delivery and market cycle considerations.
Karl Lagerfeld Villas is located in Wadi Al Safa 3, within Mohammed Bin Rashid City District 11, a growing residential zone in DubaiLand. This area is positioned for access to key Dubai corridors, with Al Ain Road and Sheikh Mohammed Bin Zayed Road providing connectivity to Downtown Dubai, Business Bay, and Dubai International Airport. The district is still maturing, so while private car remains the primary transport mode, planned infrastructure improvements are expected to enhance accessibility over the coming years. For investors, the location offers a balance between proximity to central Dubai and the space required for large villa formats. The area’s ongoing development trajectory suggests increasing liveability and potential for capital appreciation as the wider district completes.
The Karl Lagerfeld Villas project is designed as a boutique, high-amenity villa cluster with only around 51 residences. Amenities include an artificial beach, children’s pool, clubhouse, fitness centre, gymnasium, library, and a rooftop terrace. The architectural style draws from Karl Lagerfeld’s fashion collections, with minimalistic lines, monochrome palettes, and distinctive features such as a Catwalk Spiral Staircase, sunken lounge, grand walk-in closet, and a rooftop terrace. The clubhouse pavilion hosts The Club, an entertainment space, and The Library, a lounge inspired by Lagerfeld’s personal interests. Each villa is designed for privacy and scale, with features such as a dedicated Majlis, feature pool, and basement. The surrounding area is evolving, with new retail, dining, and leisure infrastructure planned as part of the wider Mohammed Bin Rashid City vision.
At AED 1,807 per sq.ft, this villa is priced significantly below recent transaction levels for larger units in the same project, where 7-bedroom villas have traded between AED 2,935 and AED 1,807 per sq.ft in 2026. The 6-bedroom format offers a substantial built-up area, which is attractive for buyers seeking space and privacy in a branded environment. The limited number of units and the fashion-branded positioning may appeal to both end-users and investors targeting the upper segment of Dubai’s villa market. Liquidity for this kind of asset is typically narrower than for smaller, more generic villas, but the discount to recent sales and the project’s design credentials may help underpin resale and rental demand. The main risk points are the off-plan delivery timeline, the evolving nature of the district, and the potential for further supply in the luxury villa segment. However, the below-market entry and the project’s unique branding provide a buffer against these factors.
This distress deal in Karl Lagerfeld Villas offers an investor a discounted entry into a limited-supply, design-led villa project in a maturing Dubai district. The 8.8% discount to original price, combined with a price per square foot well below recent transactions, creates a clear value case for buyers who are comfortable with the off-plan timeline and the evolving local infrastructure. The payment plan structure allows for staged capital deployment, which may suit investors seeking flexibility. The main considerations are the delivery schedule, the pace of area development, and the depth of end-user and rental demand for large, branded villas. For those seeking a differentiated asset with potential for capital appreciation as the district matures, this deal presents a balanced risk-reward profile, provided the buyer is clear-eyed about the project’s timeline and the dynamics of Dubai’s upper-tier villa market.
Illustrative model
Set your own assumptions and see how DISTRESS DEAL: 6-BR IN KARL LAGERFELD VILLAS behaves as a cash purchase, the same purchase mortgaged, or a capital-only resale.
The date this listing was added to our records. The asking price below is the one published then, and was still 74 days old when we last checked this listing on 3 August 2026. It is not re-checked against the market automatically, so confirm it with us before relying on it.
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.
Cash back is below cash out on these assumptions: over the whole hold this purchase returns less than it costs. Read the sensitivity table before drawing a conclusion.
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.
| Year | Net operating income | Sale proceeds, net | Net cash flow |
|---|---|---|---|
| 0 · today | — | — | −AED 24,943,500 |
| 1 | −AED 234,108 | — | −AED 234,108 |
| 2 | −AED 234,108 | — | −AED 234,108 |
| 3 | −AED 234,108 | — | −AED 234,108 |
| 4 | −AED 234,108 | — | −AED 234,108 |
| 5 | −AED 234,108 | AED 23,006,500 | AED 22,772,392 |
| Years 1–5 | −AED 1,170,540 | AED 23,006,500 | AED 21,835,960 |
| Less the year-0 outflow of AED 24,943,500 → total profit | −AED 3,107,540 | ||
Exit at year 5: illustrative sale price AED 23,500,000 less selling costs AED 493,500 = AED 23,006,500 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.
| Exit growth | Exit price | Total profit | ROI | IRR |
|---|---|---|---|---|
| −5% p.a. | AED 18.2M | −AED 8.31M | — | — |
| −3% p.a. | AED 20.2M | −AED 6.36M | — | — |
| 0% p.a.your figure | AED 23.5M | −AED 3.11M | — | — |
| 3% p.a. | AED 27.2M | AED 557k | — | — |
| 5% p.a. | AED 30M | AED 3.25M | — | — |
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.
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 Realty is a trading brand; the RERA-licensed entity is The Luxury Real Estate Brokers LLC.
KARL LAGERFELD VILLAS — Wadi Al Safa 3, Dubai
