How to get an 87% ROI over 3 years on a townhouse in Dubai?

1. Deal Snapshot

2. Client and the Task

In July 2023, one of our clients approached us with a request to find a townhouse for him and his family to live in. Before that, he had been renting an apartment in Deira for about 20 years.

After several proposed options, he liked a project that, at the time, was still little known on the market. It was called “California Village”, located in Dubailand, not far from IMG Worlds and close to Emirates Road.

A corner three-bedroom townhouse with a maid’s room cost AED 2.2 million at that time and came with an excellent 30/70 payment plan: 30% during construction and 70% upon handover.

Our client hesitated, and while he was thinking over the decision, the developer increased the price of the same unit to AED 2.4 million.

3. What the Real Estate Consultant Did

1. I found a rare project where i identified the key factor for explosive capital growth: the number of units. This project has only 76 townhouse units with similar layouts. This project was looked like a hidden gem.
2. Securing a unit was quite difficult because the right to sell in this project belonged to only one exclusive brokerage agency.
3. And the third challenge was convincing the client to believe that this was the right location for him and that this home would exceed all his expectations.

4. Results

5. Deal Summary

1. The most pleasant surprise awaited the client at handover. The size of the townhouse matched what had been promised, and the townhouse turned out to be truly spacious — not small, as townhouses in many modern Dubai projects often are. I joked that you could play football in the living room. The plot surrounding the house is also very large. It can accommodate a small swimming pool, trees, and a shaded green area.

2. The quality of the interior materials turned out to be very high.

3. This community also offers all the standard amenities found in other communities: a gym, swimming pool, and children’s play areas.

4. The most pleasant part came when the client saw how much his townhouse was worth on the secondary market. Since this is a three-bedroom corner unit with a maid’s room on a larger plot of land, similar units on property portals are now listed on the secondary market in the range of AED 4.5–4.7 million. Therefore, if we calculate the ROI, it comes to more than 87% over three years. Our client is not planning to sell his home, but this level of capital appreciation makes him smile and feel very satisfied with his purchase.

5. It is also worth mentioning that before the handover, the client secured a bank mortgage. As a result, he did not have to pay the full remaining amount on the day he received the keys. The funds he preserved through this financing decision turned out to be essential for the operational needs of his business. This is one of the wisest decisions that Dubai residents often make: they use bank financing strategically, allowing them to purchase a home while keeping their capital available for business growth and other important financial priorities. Considering the fact of the mortgage, current ROI for this unit is much more then 100%.