We’re back with another Exit Tale, and this time, we’re revisiting a holiday home that holds a special place in our hearts. Our “Exit Tale” series explores the inner workings of our Dubai real estate investment journeys on the SmartCrowd platform, from purchase right down to profit. So, let’s dive right into the heart of Dubai Marina with our Marina Diamond 1 studio, SC 103.
SC 103: Our First-Ever Holiday Home
Without getting overly sentimental, SC 103 marks a significant milestone. It transports us to our early days, bringing back memories of our second-ever transaction and first venture into short-term rentals on the platform. Back then, our small team of two at the time decided to take matters into their own hands, quite literally, by heading to IKEA with grand plans (and sheer overconfidence) to furnish the property themselves.
Armed with tool belts, the duo assembled furniture, painted the apartment, and handled all the fixings. But, as valuable as this learning experience was, it was then they realized: “Hey, this is probably not a good use of our time… and maybe outsourcing is a better idea from now on.”
All About Our Marina Diamond 1 Studio
Situated on the 8th floor of Marina Diamond 1, this cozy 373 sqft studio apartment was nestled along Al Marsa Street, Dubai Marina, with quick access to the waterfront, shops, restaurants, hotels, bars, and more.
As part of a collection of six mid-rise towers constructed by Diamond Developers, the holiday home boasted an array of facilities, including security, basement parking, a swimming pool, a jacuzzi, a gym, and steam/sauna rooms. Accessibility around this holiday home was also top-notch, with Damac Properties Metro and Tram stations both within a 5-minute walk of Marina Diamond 1.
Dubai Marina is a prime residential and leisure waterfront hotspot. Here, residents can enjoy shopping at Dubai Marina Mall, home to the opulent Address Dubai Marina, the 5-star premium hotel, or, alternatively, opt for a stroll along the panoramic Pier 7 Dubai Marina, or visit the nearby Palm Jumeirah or Bluewaters Island.
This Dubai Marina studio was our first holiday home on the SmartCrowd platform.
Putting Our SmartCrowd Strategy To The Test
Our plan for this Dubai Marina holiday home was pretty straightforward: find a budget property that would cater to budget travelers, generating a steady stream of income. And, honestly, it worked out great! Over the course of just over four years (52 months to be precise), this holiday home ultimately delivered its investors a remarkable net rental income of AED 168,675, which is an annualized yield of 8.13%!
Another Dubai Marina Success Story
SC 103 wasn’t just any holiday home, it was a prime example of a cash-to-income-generating asset. We acquired this property for AED 475,000, with investment costs totaling approximately AED 535,000.
The pivotal moment came when we decided to exit this property, selling it for AED 620,000. This transaction resulted in a net gain of AED 56,877, equivalent to an impressive 10.6% return. In total, the net overall return on our AED 535,000 (total) investment was AED 225,553, marking a phenomenal 42.10% return, translating to a 9.63% return on an annual basis.
Key Takeaway
SC 103’s journey reflects our growth as a platform, and we’re immensely grateful to all our early supporters who believed in us and put their capital straight to work! Here are our highlights from this fantastic exit:
Practice Makes Perfect: Since our humble (and pretty laborious) beginnings with SC 103, we’ve improved our approach to holiday homes, delivering even better results to our investors.
Adapting to Dubai Real Estate Market Trends: You might wonder why we’re selling properties that are still yielding good results. Well, it’s all about staying ahead of the curve and matching current Dubai real estate market trends. Today, high-quality properties with world-class amenities and a vibrant lifestyle around them are in high demand. While SC 103 is in a stellar location within Dubai Marina, the building itself is aging, and its amenities, while decent, don’t quite meet the world-class standards of newer developments.
The Power of Compounding Investments: Now, we’re giving our investors the chance to reinvest their capital (and then some!) into more quality Dubai real estate opportunities where we foresee further income and capital appreciation, given that this holiday home did exactly what we had hoped for it to do – generate income, allowing our investors to compound their investments and watch their wealth grow!
In a nutshell, SC 103’s story is one of growth and seizing investment opportunities in Dubai’s ever-evolving real estate market. Our investors’ trust has earned them healthy returns, and we hope we see more and more investors use our real estate investment platform to own Dubai properties, build their real estate portfolios and watch their money grow. Here’s to many more success stories together!
Read all about our recent exit in Dubai Production City (IMPZ)
SmartCrowd is regulated by the Dubai Financial Services Authority (DFSA).
