Investor Profile:

First-time investor, overseas (India), drawn to low price & long payment plan

Asset:

1BR off-plan in poorly located DubaiLand project

Deal Snapshot:

-Launch: AED 600k

-10/90 post-handover plan

-Year 1 cash: AED 68k (incl. fees)

-Handover delayed from Q4 2023 -> Q2 2025

What Went Wrong:

– Weak developer, no track record

– Isolated location with poor connectivity

– Rented for AED 35k vs projected 48k

– High service charge: AED 18/sqft

– Resale value: AED 525k (AED 75k paper loss)

Financial Loss – Year 1 After Handover:

– Mortgage/Post-handover: AED 72k

– Rent: AED 35k

– Opex: AED 10k

– Net annual loss: AED 47k + resale loss

What Could Have Been Done Instead:

Option 1: Ready Studio in IMPZ

– AED 600k asset with 6.8% yield

– Immediate rental income

Option 2: Smarter Off-Plan – Dubai South

– AED 600k for 1BR in Dubai South (Expo Legacy area)

– Backed by gov’t infra & airport expansion

– Projected rent: AED 50-55k, resale: AED 700-750k

“A great payment plan on the wrong project can cost you more than paying full price for the right
one.”