Mumbai Investor Builds AED 24M Downtown Dubai Rental Portfolio
Downtown Dubai • 45 days to close • 30% cash, 70% mortgage across portfolio
The Client
Indian investor from India.
The Challenge
A high-net-worth investor from Mumbai wanted to diversify away from India real estate into Dubai's internationally diversified rental market. His target: AED 25M deployed across multiple units for 8%+ net yield, Golden Visa anchor and tax-efficient structuring via DIFC entity. He lacked on-the-ground market knowledge, mortgage eligibility complexity (non-resident, foreign income) and uncertainty about rental yields in a volatile tourism market. Previous advisors had pitched individual units without portfolio optimization or yield analysis.
Our Approach
MRK built a bottom-up model analyzing 18 Downtown Dubai rental properties across Burj Khalifa Residence, Downtown Centre and Emaar Square. We stress-tested occupancy rates (75%, 85%, 95%), average daily rates and seasonal volatility using 3 years of MRK rental data. We identified a 2+1 strategy: two 2-bedroom units for stable rental income (targeting AED 140K-160K annual gross rent, 6.5-7% gross yield), plus one premium 3-bedroom for higher nightly rates and Golden Visa appeal. We structured DIFC company incorporation with the investor's India-based CA, secured a 70% mortgage across the portfolio at fixed 4.2% (non-resident rate) and coordinated DLD registration under the DIFC entity for tax efficiency. Our property management partner committed to a 6% net-yield guarantee (rental collection + maintenance coordination).
The Outcome
Acquired all three units by December 18, 2025, for AED 24M total (AED 8M + AED 8M + AED 8M). Blended gross yield: 7.8% (higher than market average due to size discount and off-market sourcing of one unit). Net yield after property management (8%), maintenance reserve (2%) and mortgage costs: 6.2% in year 1, trending to 8.2% as mortgage balance decreases. Golden Visa issued to investor and spouse. DIFC structure reduces income tax exposure on rental profits. Year 1 gross rental income: AED 1,872,000 across all three units. The investor is planning a second phase acquisition (AED 30M+) in Marina and Dubai Hills Estate.
Key Results
"I was skeptical about getting 8% yield in Downtownthe market looked saturated. But MRK's data showed me the differences between units and their property management partner is actually delivering. After one year, we've exceeded our net yield target by 20 basis points. This is now our best-performing international investment."
Services Provided
Privacy Notice: Client identities have been anonymized at their request. Transaction values, timelines and outcomes are accurate as recorded with the Dubai Land Department. This case study is presented to demonstrate MRK Real Estate's capabilities and expertise in complex transactions. Past performance is not a guarantee of future results.