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Development Management Agreement - 1 Bed Apartment

This case study demonstrates a results-driven development partnership model in Dubai, where Concept Jumeirah manages every stage from acquisition to renovation and sale under a clear, performance-based framework. The agreement ensures transparency and strong alignment between investor objectives and developer rewards.

Project Investment Breakdown

Property Acquisition

Purchase price: AED 1,200,000

Purchase costs (transfer, agency, registration): AED 76,780

Renovation Costs

Refurbishment and fit-out: AED
133,000

Professional development management ensures quality execution

Management Fee

Development management fee (3%): AED 42,293

Total project cost: AED 1,452,073

Sale Performance

The renovated property achieved a post-renovation valuation of AED 1,600,000, generating a gross profit of AED 148,000 after deducting the total project cost of AED 1,452,073.

Investor Returns

The investor funds 100% of the project cost and receives 85% of profits, earning AED 125,738 with an ROI of approximately 9% and within a time period of just 12 weeks

Profit Distribution & Partnership Value

0%
Investor Profit Share

AED 125,738 return on investment

0%
Concept Jumeirah Share

AED 22,189 profit participation

0%
Management Fee

AED 42,293 development fee

Key Takeaway

This Development Management Agreement creates a win-win partnership structure. The investor funds 100% of the AED 1.45M project cost and earns a strong 9% ROI with 85% of profits within 12 weeks. Concept Jumeirah earns AED 64k through management fees and profit sharing. Our success is tied to your returns incentivising us to enhance capital value and control costs at every stage.