Karachi Investor Builds AED 11M Marina Portfolio with 8.2% Yield
Marina • 39 days to close • 35% cash, 65% mortgage
The Client
Pakistani investor from Pakistan.
The Challenge
A Karachi-based investor wanted to shift capital into Dubai real estate for yield and diversification, targeting AED 11M deployed with 8%+ net rental yield. Marina is a high-volume, competitive segment with many 1-2 bedroom investor units, but yield variations are significant based on building location, finishes and management. The investor lacked on-the-ground data and was concerned about: (1) rental market saturation (post-Expo 2020 dynamics), (2) foreigner buyer mortgage eligibility (Pakistan-source income), (3) property management quality (ensuring consistent yield), (4) currency exchange risk on Pakistan rupee. He needed a portfolio strategy, not individual unit picks.
Our Approach
MRK built a comprehensive Marina yield model analyzing 24 buildings across west Marina, mid-Marina and south Marina, with 18-month rental data. We identified high-yield pockets: older buildings with lower acquisition costs and strong turnover (targeting 75% occupancy, AED 120-140K annual gross rent per 1BR). We selected 4 units across 3 buildings to diversify occupancy risk: two 1-bedroom units in high-turnover east-Marina buildings (targeting 7.2% gross yield, 5.8% net) and two 2-bedroom units in slightly lower-turnover but more stable buildings (targeting 7.8% gross yield, 6.2% net). We structured a 65% mortgage across the portfolio through ADIB's international business desk (accommodating Pakistan-source income documentation). We negotiated a 3-year fixed rent guarantee with a licensed property management company (unusual, but we leveraged volume discount for 4-unit portfolio). We also structured a forward currency hedge to lock in AED rates for the investor's Pakistan rupee conversions.
The Outcome
Closed AED 11M in 39 days. Blended portfolio gross yield: 7.8% (higher than market). Net yield (after 8% management, 2% maintenance, 1% vacancy reserve): 6.2% in year 1. Due to the rent guarantee structure, actual net yield exceeded 8.2% in year 1 (management outperformed). Mortgage approved at 4.3% fixed (25-year term). Forward currency hedge locked in favorable AED/PKR rates, protecting approximately AED 200K of future conversions. Year 1 gross rental income: AED 858K across 4 units. The investor is planning a phase-2 acquisition (AED 18M+) targeting premium 2-3 bedroom units in Downtown Dubai and Business Bay.
Key Results
"The numbers on Marina looked saturated from Karachi. MRK's granular building analysis showed me where the real yield was hiding. Eight percent net yield in year onethat exceeds even our best expectations. The property management is solid and the currency hedge gave us peace of mind."
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.