Здание в Мувайле, 11 спален, 10500000 AED - 16874072

This building, currently offered for sale in the Muwaileh area, represents a compelling real estate investment opportunity. Situated on a main road and spanning 6,000 square feet, the property features a mix of residential and commercial units. It is fully leased, generating a reported annual income of AED 1.5 million. This configuration combines residential and commercial investment within a single asset, allowing the investor to benefit from diversified rental streams rather than relying on a single source of income.

The building’s location on a main road—a key factor in evaluating investment properties—ensures excellent accessibility, high visibility, and consistent foot and vehicular traffic. These elements are particularly advantageous for properties that integrate commercial retail spaces with residential units, as the street’s character and the visibility of the retail outlets significantly enhance their appeal to tenants and businesses. Furthermore, the inclusion of multiple residential units allows the owner to capitalize on local housing demand, influenced by prevailing rental rates, available amenities, and broader market dynamics.

With a total area of 6,000 square feet, the building houses a variety of residential apartments and commercial retail units, making it a versatile, multi-use investment property. This diversity is a key factor when analyzing income-generating real estate, as it allows for the distribution of revenue across various units that differ in terms of size, intended use, and target tenant demographic. It is also essential to examine official blueprints to clarify whether the stated area refers to the land plot or another measurement; furthermore, one should review the total built-up area, the number of floors, and the approved permits to gain a comprehensive understanding of the property and its components.

In terms of residential space, the building comprises 17 two-bedroom apartments (each with a living area), 9 one-bedroom apartments (with a living area), and 2 studio units, bringing the total to 28 residential units. This mix offers a variety of housing options: the two-bedroom apartments cater to small and medium-sized families requiring more space; the one-bedroom apartments are well-suited for individuals or couples; and the studios provide a practical choice for those seeking a smaller living space. Such diversity helps attract a broader range of tenants and enables the investor to spread residential rental income across multiple units, rather than relying on a limited number of apartments.

In addition to the residential units, the building includes eight commercial retail spaces—four located at the front and four at the rear. This commercial component adds a significant investment dimension to the property, as these units can generate rental income independent of the revenue derived from the apartments. The presence of retail units on two sides of the building may offer a variety of storefront locations and commercial spaces, depending on the actual design, the visibility of each unit, and its accessibility. The rental value of these units remains contingent upon factors such as their specific location, size, the nature of permitted business activities, foot traffic, and the suitability of the space for various commercial uses.

A key advantage highlighted in the offer is that the building is fully leased—meaning all its residential and commercial units are currently occupied. This is an attractive feature for an investor seeking an established property that already generates rental income, eliminating the need to start from scratch in finding tenants for every unit. Furthermore, existing lease agreements can assist the buyer in financial planning and estimating projected cash flows following the transfer of ownership—provided that the contracts are thoroughly reviewed to verify rental rates, lease terms, conditions, and the tenants' payment consistency.

Regarding financial returns, the stated annual income for the building is 1,500,000 UAE Dirhams. This figure is a critical component in evaluating the property as an investment, as it represents the annual revenue reportedly generated through leasing. Given that the building comprises 28 residential units and eight retail spaces, this diversification of income sources may offer the investor greater flexibility in revenue management—though it is essential to determine the specific contribution of each apartment and retail unit to the total annual income. The offer mentions a 10% yield—a significant figure for investors comparing income-generating real estate. If this 10% represents the gross rental yield—calculated based on an annual income of AED 1.5 million—it implies an estimated investment value of AED 15 million (derived by dividing the annual income by the yield: 1,500,000 ÷ 0.10). However, this figure is merely a mathematical estimate based on the provided data rather than a confirmed sale price, as the actual asking price is not specified in the advertisement. Furthermore, it is essential to clarify whether the stated yield is "gross" (before expenses) or "net" (after deducting operating costs, maintenance, management fees, and other financial obligations).

Another noteworthy detail is the building’s age: 20 years, according to the offer. The age of a property is a critical factor in investment valuation, as it typically correlates with the structural condition, the efficiency of electrical, plumbing, and HVAC systems, the state of the facades and common areas, and the potential need for future maintenance. Nevertheless, age alone is not a definitive indicator of quality or viability; an older building can still be a sound investment if its technical condition is solid and its rental income remains favorable relative to the purchase price and operating costs.

In this context, the mention of comprehensive maintenance carried out across the entire building—as noted in the advertisement—is a positive aspect that warrants further verification. Good maintenance can contribute to improving the condition of a building and preserving its appeal.