07/02/2024
Investment Opportunity in Meydan 1 Dubai_DESIRE-The Realtor
Investment Opportunity, First come first serve basis ✍🏿
Usually at handover, there is a lot of volatility or say price fluctuations on the market. This is a result of the following:
1. Off-plan buyers want to pull out with a premium.
2. Mortgage buyers are coming in and looking to get at the fairest price possible by negotiating a low price that together with interest on the mortgage will make it fair enough for them.
3. Cash buyers looking to flip are also willing to cut the Best deal and turn it around in a year.
As a result, the market price is undecided as not much information was made available by the Dubai Land Department (DLD) at the time. But once this whole process is done, the market price is now determined, and second-time buyers automatically put a premium of at least 20% on their purchase prices.
Why am I explaining all this?
I have seen an opportunity here.
The market is in an uproar in the Azizi Riviera handover in Meydan 1 and people are selling units between 550k and 700k for Studios based on size, view, and place of the building in the project.
The investor with me has his unit in a building opened to the upcoming Lagoon✅.
Here is what is even more important, Long-term rentals are between AED45k to AED60k per year.
With a long-term ROI of 9% which is above the market average of 5-8%, automatically commands an equivalent price of AED667k (60K/0.09).
Secondly, Azizi still has ready units in bulk, and guess what? They have fixed their price at AED1.3m. I will share a screenshot of Azizi's inventory with you in a moment.
This means, once all this handover phase is over and few people are willing to sell their units as they will put them on rent, AZIZI will flood the market with their units at AED1.3million and if you list yours at just AED800k, it will be a hot cake. You’ll automatically be in appreciation of AED230k (AED800k - AED570k) representing an outright 40% profit on your investment.
The owner of this unit is asking for a net AED570K as he wants to invest in his business back in Africa.
Short-term rentals command AED80k per year NET which is 14% (80K/570K) NET ROI and that is MASSIVE. This figure I got from a friend working in a holiday homes company and the estimate is based on 80% occupancy per year.
Meydan 1 is just 15 minutes to Downtown and 25minutes to DXB airport which makes the location very ideal.
Go over it and if the figures make sense to you, I can block this unit for you.
Let's do this 💪
Cheers,
DESIRE-The Realtor 🤝