Distressed Real EstateS
Opportunity to achieve extraordinary profits by purchasing far below market price.
The ever-growing real estate market in Dubai also creates more and more distressed purchasing opportunities with owners who cannot anymore pay their mortgages or instalments to the developer or bank. In such cases, those owners need to sell their properties very fast and will agree to much lower prices as they need a buyer who can act fast.
Stone Investment has access to such fire-sale opportunities through developers, real estate brokers and its general network. Here, prices of 20% – 50% below market price can be realized.
There are 2 models for successful distressed property Investments:
Distressed Opportunity Trading
Fire sale properties are purchased about 20-40% below market price. after purchase they get renovated, furnished and rented out on short-term lease (10-13% roi).
In parallel, they are brought back to the market slightly below market price. after renovation this will be about 30% higher than the fire sale purchase price.
On average 8-12 months after purchase the property will be resold with a Total Profit of 25-30% p.a.cv.
Distressed Opportunity Buyback
Property owners who fail to pay their developer post-handover instalments often expect this situation to change in some time.
We buy their properties at 50% of the total price and take care of the remaining instalments. In exchange the owner gets for 2 years the right to buy back the apartment for the same price. In the meantime, he pays market-price rent (15-20% monthly ROI).
50% of the deals will not be bought back, which means a profit of up to 100% plus received rent. On average, this model leads to a Total Profit of 25-30% p.a.
STORY
Experience of the team behind Stone Investment
The start of the group was in Germany in 2009. Our first project was an apartment building that was renovated to a high standard. Building was split up in individual appartements and sold separately. In the following years, the company started with own real estate developments and expanded across Germany and Europe.
With the experience of >10 years in real estate development, refurbishment and renting, in 2020 the group expanded to UAE. Initially, the UAE businesses was focused on real estate investment, refurbishment and property management. In 2023, the company decided also to start its core-business of real estate development in the UAE.
If you are interested in a real estate investment in Dubai, we are looking forward to meet with you.
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We would be very pleased to receive your trust for a long-term cooperation.
