Appearances can be deceiving, and that’s especially true in the real estate world! In this Exit Tale, our one-bedroom tucked away in Marina Residence Tower B, Dubai Marina, taught our investors not to judge a book solely by its cover as there can certainly be hidden value in seemingly unconventional assets. Check out our exit: SC 148, where we reveal how you can reap the benefits from investment in Dubai, even in cases that may not initially seem promising!
Meet Marina Residence Tower:
Marina Residence Tower B is a mid-rise complex developed by the Sharaf Group at the heart of Dubai Marina. The cozy one-bedroom apartment featured high-quality furnishing, a spacious living area, a fully-fitted kitchen, and a balcony with panoramic views of the marina. Strategically located by Jumeirah DMCC Metro Station, Marina Residence Tower B is within a short stroll to the public beach, shopping malls, international restaurants, bars, and cafes, making for a quality investment in Dubai.
Smart Strategy for Dubai Marina
Purchased almost a year into COVID lockdowns in March 2021, SC 148 aligned with our budget strategy for Marina, which was to offer an affordable short-term rental. But here’s the catch: the property had a few less-than-ideal features, such as a low floor and a view facing the metro station.
Ultimately, the seller’s dissatisfaction with the property, coupled with post-pandemic market dynamics, allowed us to secure this asset at an attractive price of AED 530,000 – a rarity in the Marina, where similar properties were commanding much higher prices.
Results That Speak Volumes
Fast forward 2.5 years, and the results are nothing short of impressive. SC 148 generated nearly AED 141,829 in net rental income for investors, which represents 26% of the purchase price. The exit strategy proved equally rewarding, with an exit price of AED 820,000 or AED 800,000 net of commission, translating to an outstanding capital appreciation of almost 51% in just 2.5 years!
The net capital gains of AED 185,278 on the sale represented a 31% return on a net basis. When factoring in the income generated over the same period, the total return on investment stood at an impressive 327,108.53, or 54.24%. On an annualized basis, SC 148 delivered an average return of 20% per year.
Once again, this property’s total return of 54.24% reaffirms our smart strategy for this investment in Dubai, and we are delighted that our investors were able to benefit significantly. Here are our highlights:
Hidden Gem Potential: Despite its unassuming one-bedroom appearance, a seemingly low-quality asset doesn’t necessarily translate to poor returns. If you’re looking to invest in Dubai, always look beyond initial impressions and surface value when evaluating a property.
Challenge Accepted: Considering the post-pandemic challenges, the low floor, and the metro view, we managed to operate it and sell the property – the smart way.
Low Entry Point: While not a prime investment in Dubai, or an asset with top-tier views, its attractive entry point allowed for substantial capital appreciation and a consistent income stream.
Interested in another Dubai Marina exit? Check out first holiday home exit here.