Presenting our 20th Exit on SmartCrowd: SC 185, a sleek studio in Studio One, Dubai Marina! But before we dive into this Exit Tale and get into the technicalities of the Dubai real estate market at the time, let’s kick things off with a mini celebration speech.
Twenty isn’t just a number. It’s an important milestone, a testament to the trust our investors have placed in us, and, of course, a reason to break out the confetti! We’re incredibly proud of this achievement, and we can’t wait to share our latest success story with you.
Now, SC 185 wasn’t our first Studio One venture – in fact, it’s our third. Our other two units, a smaller studio and a two-bedroom unit on lower floors, are currently performing exceptionally well. So, let’s find out how well this Dubai Marina studio did!
🏠 Studio One:
Due to the success of our first two units in the Studio One building, we set our sights on this larger studio on a higher floor with a stunning view of the Marina. Offering premium living in Dubai, Studio One units are efficiently designed to maximize space, boasting a sleek design with full-length windows.
The 502-sqft studio apartment featured a spacious living room, an open balcony, a fully-fitted kitchen, and a modern bathroom, along with direct access to first-class amenities, canal ways, highways, shopping malls, international restaurants, and cafes, and public transport stations dotted along the marina – a millennial and busy young professional’s dream.
✨ Power of the Brand:
In February 2022, just shy of two years post-COVID lockdowns, we secured this spacious studio for an attractive price of AED 730K in an upward-trending market. Considering the top-tier quality of Select Group properties, we paid a slight premium – AED 1460 per square foot (PSF), to be exact. Sure, this edged above Dubai Marina’s market average of AED 1300 PSF for quality assets at that time, but believe us when we say it was a premium well-spent, thanks to Select Group’s undeniable reputation and brand strength.
💪 Gains Ahead:
While 2022 and 2023 actually threw some curveballs for short-term rentals due to Dubai real estate market conditions and increased supply, our move still paid off. Yes, rental income for SC 185 fell short of our initial expectations, but we still sold the furnished, vacant unit for an impressive profit.
🏆 Grand Finale:
And now for the final result! In just under two years or 23 months to be exact, we successfully exited SC 185 for AED 1.044 million (AED 1.017 million net), with capital gains amounting to AED 194,946. Rental income generated stood at AED 78,335, resulting in an overall total return of 32.3%. Given that, our SC 185 investors realized an annualized return of 17.22%, which is just fantastic!
Once again, our SC 185 success story reinforces a few important insights when making a real estate investment in Dubai. Here are our key lessons from SC 185:
- Long-term Focus: There’s great significance in acquiring quality assets in the right location and for the right price! The lesson here is clear – consider long-term gains, not just rental yield when investing.
- Brand Power Matters: Select Group properties’ reputations played a crucial role. Paying a slight premium for top-tier quality justified itself in the long run.
- Remove Your Emotions: Maintaining a rational and calm approach during market challenges is crucial. In the case of SC 185, despite short-term rental challenges, our strategic approach led to a successful exit.
And that’s a wrap for this Exit Tale! Explore our latest opportunities on the SmartCrowd platform and start investing in Dubai real estate – your portfolio might thank you later. 🚀