view of Palm Jumeirah in Dubai, showcasing the luxurious artificial archipelago against a backdrop of the Arabian Gulf

Discover How a Single Plot in Palm Jumeirah Skyrocketed in Value: A Real Estate Investment Masterstroke from AED 1.7M to AED 81.5M!

CS Villa80.5

Financial Analysis

Location: Signature Villas, Frond G Villas, Palm Jumeirah, Dubai

Property Type: Plot

Property Size: 13,598 sqft

Purchase Price1,701,267466,371
Sold Price81,500,00022,328,767
DLD Fee68,05118,642
Total Cost of Ownership1,769,318484,612
Capital Investment918,684251,690
Net Profit79,730,68221,844,299
Holding Period (years)8.088.08
ROIC (%)8681.798681.79

Calculation Details:

DLD Fee and Total Cost of Ownership:

  • DLD Fee = 4% of Purchase Price = 0.04 * 1,701,267 = 68,051 AED (18,642 USD)
  • Total Cost of Ownership = Purchase Price + DLD Fee = 1,701,267 + 68,051 = 1,769,318 AED (484,612 USD)

Capital Investment:

  • 50% Purchase Price + DLD Fee = (0.5 * 1,701,267) + 68,051 = 918,684 AED (251,690 USD)

Net Profit:

  • Sold Price - Total Cost of Ownership = 81,500,000 - 1,769,318 = 79,730,682 AED (21,844,299 USD)

ROIC Calculation:

  • ROIC = (Net Profit / Capital Investment) * 100 = (79,730,682 / 918,684) * 100 = 8681.79%

Transaction Overview:

The plot, located in the luxurious Signature Villas on Frond G of Palm Jumeirah in Dubai, was initially purchased for 1,701,267 AED (466,371 USD). Over a holding period of approximately 8.08 years, the plot was sold for a staggering 81,500,000 AED (22,328,767 USD), resulting in a net profit of 79,730,682 AED (21,844,299 USD). The initial capital investment amounted to 918,684 AED (251,690 USD), which includes 50% of the purchase price plus the DLD fee. This strategic investment yielded an extraordinary ROIC of 8681.79%, highlighting an exceptional profit margin in the competitive Dubai real estate market.

Additional Insights:

  • Per SQ FT Price at Sale: The sale price per square foot can be calculated as follows:

Legal Disclaimer

This document and its contents, including any calculations and analyses, are provided for informational and educational purposes only and should not be construed as financial advice, an offer, or a guarantee of future performance. The information herein is simplified to enhance understanding and does not reflect the complexity of real-world financial decisions. Past performance is not indicative of future results, and investments in real estate are subject to market risks and uncertainties that can result in the loss of principal.

PHOREE Real Estate, including its owners, managers, employees, and consultants, makes no warranties or guarantees regarding the accuracy, reliability, or completeness of the information provided. The company and its affiliates shall not be liable for any errors or omissions in the content, or for any actions taken in reliance thereon.

Investors are strongly advised to consult with professional financial advisors before making any investment decisions. The responsibility for any investment decision lies solely with the investor, and PHOREE Real Estate disclaims any liability for financial loss or damage that may result from such decisions.

By accessing and using this information, the reader agrees to the terms of this disclaimer and acknowledges that they are acting on their own behalf and at their own risk in any investment decisions.

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