How to make 8-9% passive income on real estate in Dubai?

Case study of Masterpiece Group’s client
29.08.2023
About
Background:
  • Eric
    Investor
Date of Application: June 2021
Goal: He wants to get money without taking part
Budget: At the time of application, budget ranged from 2.5 to 3.5 million USD
Part #1
Choosing the Right Investment Area
Dubai comprises 226 districts grouped into 9 regions


We focused on 3 neighborhoods:

  • Jumeirah Village Circle, Sports City
  • Jumeirah Beach Residence
  • Dubai Marina
Part #2
Jumeirah Village Circle, Sports City
Part #3
Jumeirah Beach Residence
Part #4
Statistics on average rental cost
1. Jumeirah Village Circle Rent Summary
2. Jumeirah Beach Residence Rent Summary
3. Dubai Sports City, Al Hebiah Fourth Rent Summary
Part #5
Developers, inside these neighborhoods
  • Nakheel
  • Binghatti Developers
  • Milano Giovanni Boutique Suites
  • LEOS Developments
  • Meteora Real Estate Development
  • BlueBell
  • Imtiaz Developments
  • AYS Developer
  • Segrex Development
  • Samana International
  • Object One Real Estate Development
  • Tiger Properties
  • Danube Properties
  • Ellington Properties
  • Lootah Real Estate Development
  • Ellington Properties
  • Bloom Properties
Part #6
At first we wanted to buy apartments in BlueBell Residence...
But they delayed construction for 4 months...
They had our check for 10%.


We found a quick alternative:
We returned the check and bought an already furnished apartment at the same price, meeting the payback period for the client.
Part #7
We have chosen the developer Milano Giovanni Boutique Suites
Good market value and quality of furniture, hotel level at a reasonable price, while everyone is chasing the brand, we have the opportunity to physically view the properties and make a purchase at a good return on investment.

Due to the lack of popularity of the developer, he has to sell real estate cheaper and gain reputation in the market.
And to diversify the risks we took 3 more apartments in the most touristy areas of Dubai:

1. Paloma Tower, Dubai Marina
2. Al Fattan Marine Tower
3. Shams 4, Jumeirah Beach Residence, Dubai
Part #8
We have 4 neighborhoods and 18 facilities
We divided the amount of $3 ,117,250 by the 18 sites:
Milano Giovanni Boutique Suites:

— $1 ,905,740 (7,000,000 AED)
— 15 sites

1. Apt. 301, Roma Giovanni Boutique Suites, Sports City, Dubai, UAE
2. Apt. 809, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
3. Apt. 103, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
4. Apt. 104, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
5. Apt. 204, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
6. Apt. 209, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
7. Apt. 302, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
8. Apt. 408, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
9. Apt. 506, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
10. Apt. 509, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
11. Apt. 708, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
12. Apt. 203, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
13. Apt. 1008, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
14. Apt. 1309, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
15. Apt. 1409, Milano Giovanni Boutique Suites, Jumeirah Village Circle, Dubai, UAE
Others:

— $1 ,211,500 (4,450,000 AED)
— 3 sites

1. Apt.505, Paloma Tower, Dubai Marina, Dubai, UAE - 1 000 000
2. Apt.1002, Al Fattan Marine Tower, Al Mamsha St., Jumeirah BeachResidence, Dubai, UAE - 2 050 000
3. Apt.2904, Shams 4, Jumeirah Beach Residence, Dubai, UAE - 1 400 000
Part #9
We've done the renovations and brought in the furniture
We've placed ads on portals:
Part #10
Result
1. Milano Giovanni Boutique Suites:

The cost of 15 apartments combined: 7 000 000 AED
Monthly income: 49 000 AED
Annual income: 588 000 AED


ROI 8.4%
Payback 11.9 years
2. Paloma Tower, Al Fattane Marine Tower & Shams 4:

The cost of 3 apartments combined: 4 450 000 AED
Monthly payment: 33 800 AED
Annual income: 588 000 AED


ROI 9.15%
Payback 10.9 years