Are you ready for this Exit Tale in IMPZ? Our “Exit Tale” series explores full property investment exits we’ve had on the platform, shedding light on the process from purchase right down to profit. So, what does a full exit entail? A full exit involves the journey of an investor who purchases a unit, enjoys rental income over time, and ultimately sells the property, not only reclaiming their capital but also potentially reaping handsome profits through property investment in Dubai real estate.
In this Exit Tale, we explore our recent exit in Dubai Production City (also known as IMPZ): SC 152. The big question is, did we achieve what we set out to do? Let’s find out!
SC 152: A Budget-Friendly Haven For Property Investment
At first glance, SC 152 might seem like an unassuming studio apartment, but don’t let its size fool you. Located in Lago Vista Tower C, Dubai Production City (IMPZ), this 496 sq ft compact space certainly packs a punch, featuring top-notch fixtures, a modern washroom, and a fully-fitted kitchen.
Lago Vista Tower C, developed by DAMAC, stands graceful and tall with 21 floors and a total of 328 residential units each equipped with reserved parking – a distinctive feature. The tower offers a mix of spacious studios, and 1-2 bedroom apartments, catering to various preferences.
Formerly known as IMPZ, Dubai Production City spans a staggering 43 million sq ft. Developed by TECOM Group, this mixed-use community has been a hub for media production since its inception in 2003. With its location along Sheikh Mohammed Bin Zayed Road, Dubai Production City provides close proximity to areas like Jumeirah Village, Jumeirah Golf Estates, and Dubai Sports City. Overall, this versatile yet well-rounded community seamlessly blends residential, business, and lifestyle options for all to enjoy.
Our unit in Lagos Vista C was an affordable studio apartment located in Dubai Production City.
Our Dubai Production City Strategy in Motion 🎯
Our journey with SC 152 began when it was acquired for AED 255,000 just over two years ago. With our sights initially set on generating income within the budget-friendly IMPZ area, we tapped into a specific demographic seeking affordable housing. Despite initial pandemic challenges and rental constraints, the property held its ground, and a new lease eventually brought a much-needed boost in rental yield, generating AED 33,324 in rental income over the investment period.
The Turning Point for SC 152
Fast-forward to the present—while early rental restrictions sought to dim the investment’s potential, SC 152’s value in IMPZ indeed appreciated notably. A sale offer of AED 357,490 sealed the deal, translating into a gross return of AED 102,490. With a total net gain of AED 88,881, this journey marked a respectable 30.37% return over 26 months, culminating in an impressive 12.4% annualized return – hardly a number to scoff at!
Key Takeaways for Investing in Dubai Real Estate
Some might label units like SC 152 as “boring assets”, but their stable performance is a true testament to their value in one’s portfolio. With that in mind, we’ve learned the importance of:
- Embracing Challenges: Like any investment journey, SC 152 encountered its fair share of twists and turns, particularly in relation to its rental constraints, which undoubtedly affected its income-generating ability. But here’s the silver lining – holding steady in the face of market shifts leads to rewarding outcomes. SC 152 delivered a strong 12% annualized return, even outpacing our initial targets for this IMPZ unit.
- Balancing Income and Stability: SC 152’s journey highlighted the importance of maintaining the right balance between consistent rental income and capital appreciation. The outcome? A balanced act where 60% of the returns emerged from capital gains and 40% flowed from rental income.
- Considering Budget-Friendly Gems: Lago Vista Tower C puts the spotlight on budget-friendly properties in Dubai Production City, ideal for property investment. As the Dubai real estate market flourishes, these commonly overlooked assets can transform into goldmines, providing promising returns and enhancing your investment portfolio’s stability.
Overall, Lago Vista Tower C’s story is one of the importance of practical investments. This IMPZ budget property demonstrated stability amid rental obstacles and market shifts. Still, as the Dubai real estate market evolves, these affordable areas tend to appreciate, earning them a well-deserved place in your investment portfolio. Hang tight for now, more insightful Exit Tales are coming your way!