luxury living at Harbour Gate Tower 1, set in the heart of Dubai Creek Harbour, showcasing how this development is redefining

Discover How Harbour Gate Tower is Redefining Dubai Creek Harbour!

Transaction Summary

  • Location: Harbour Gate Tower 1 (Harbour Gate , ADubai Creek Harbour)
  • Property Type: Apartment

Financial Analysis

  1. Purchase Price: AED 1,864,888
  2. Sold Price: AED 3,011,888
  3. Holding Period: 6 years and 5 months (rounded to 6.42 years for calculations)
  4. DLD Fee: 4% of Purchase Price = AED 74,595.52
  5. Total Cost of Ownership: Purchase Price + DLD Fee = AED 1,939,483.52
  6. Capital Investment: 50% Purchase Price + DLD Fee = AED 1,004,939.26
  7. Net Profit: Sold Price - Total Cost of Ownership = AED 1,072,404.48
  8. ROIC: ((Net Profit) / Capital Investment) * 100 = 106.71%

Calculations in USD (Conversion Rate: 3.65 AED/USD)

  • Purchase Price: $510,789
  • Sold Price: $825,454
  • DLD Fee: $20,439
  • Total Cost of Ownership: $531,227
  • Capital Investment: $275,331
  • Net Profit: $293,808
  • ROIC: 106.71%

Detailed Breakdown

Purchase Price1,864,888510,789
Sold Price3,011,888825,454
Holding Period6.426.42
DLD Fee74,59520,439
Total Cost of Ownership1,939,484531,227
Capital Investment1,004,939275,331
Net Profit1,072,404293,808
ROIC (%)106.71106.71

Transaction Explanation

  • The apartment was purchased in September 2017 for AED 1,864,888.
  • A DLD fee of 4%, amounting to AED 74,595.52, was added to the purchase price, making the total cost of ownership AED 1,939,483.52.
  • The property was sold in February 2024 for AED 3,011,888.
  • The net profit from the sale, after deducting the total cost of ownership, was AED 1,072,404.48.
  • The Return on Invested Capital (ROIC) was calculated as 106.71%, indicating more than a doubling of the initial capital investment through the sale of the property.

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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