To analyze the real estate transaction for the apartment located in Bluewaters Residences 8 on Bluewaters Island, we'll begin by calculating all the financial metrics based on the information provided.

Transaction Overview:

• Location: Bluewaters Residences 8 (Bluewaters Island)
• Property Type: 3 Bedroom Apartment
• Property Size: 2,097 sqft
• Purchase Date: April 2018
• Purchase Price: AED 5,435,000
• Sold Date: 1st February 2024
• Sold Price: AED 12,500,000

Financial Calculations:

1. DLD Fee at Purchase: 4% of AED 5,435,000 = AED 217,400
2. Total Cost of Ownership: AED 5,435,000 + AED 217,400 = AED 5,652,400
3. Capital Investment: 50% of Purchase Price + DLD Fee = (0.50 * AED 5,435,000) + AED 217,400 = AED 2,935,900
4. Net Profit: AED 12,500,000 - AED 5,652,400 = AED 6,847,600
5. Holding Period: February 2024 - April 2018 = 5.75 years

Conversion to USD (Rate: 1 AED = 0.274 USD):

• Purchase Price in USD: AED 5,435,000 / 3.65 = USD 1,489,041
• Sold Price in USD: AED 12,500,000 / 3.65 = USD 3,424,658
• DLD Fee in USD: AED 217,400 / 3.65 = USD 59,561
• Total Cost of Ownership in USD: AED 5,652,400 / 3.65 = USD 1,548,603
• Capital Investment in USD: AED 2,935,900 / 3.65 = USD 804,356
• Net Profit in USD: AED 6,847,600 / 3.65 = USD 1,876,055

Return On Investment Calculations:

• ROIC: ((AED 6,847,600) / AED 2,935,900) * 100 = 233.28%

Table of Calculations in AED and USD:

Transaction Summary:

This apartment in Bluewaters Residences 8 was purchased in April 2018 for AED 5,435,000 and sold in February 2024 for AED 12,500,000. The total cost of ownership, considering the DLD fee, was AED 5,652,400, leading to a capital investment of AED 2,935,900. Over a holding period of 5.75 years, the net profit from this transaction amounted to AED 6,847,600, resulting in a Return on Invested Capital (ROIC) of 233.28%. The transaction showcases a significant profit and an excellent return on the investment made in the Dubai real estate market.

Per Sq Ft Price at Sale: AED 12,500,000 / 2,097 sqft = AED 5,961.37 per sqft

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.
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