Dubai developers offer clever incentives
Developers in Dubai are pulling out all the stops to win over buyers for newly launched and existing projects.
Property Finder that is a leading digital real estate platfrom in the region, published a report. The report showed, while post-handover payment plans for off-plan properties were common place in 2017 and 2018, these incentives are now available for ready homes as well. These plans run from three years to anything up to 15 to 20 years.
The report added, “Recently, developers have been playing the role of banks to stimulate demand for both off plan and ready properties with ingenious payment plans. This is because under the current loan to value requirements in the UAE, the majority of buyers find it difficult to raise bank finance, and establish a foot on the ladder, due to hefty deposits and fees required.”
The latest incentive deployed by Azizi Developments for a newly launched scheme in Al Furjan is to partner with one bank for down payment loans while another financial institution will service the remaining portion of the mortgage. This has been conceptualised to bring in people who cannot afford the initial down payment. The first bank in question is also offering a six-month interest free facility to customers.
Lynnette Abad, the director of Research and Data, Property Finder, said, “Developers have become quite creative over the last few years to sell their properties, both under construction and ready stock. The most popular have been the post-handover payment plans, rent-to-own and new schemes such as the one offered by Emaar and DMCC.”
Abad noted, “Developers are very aware that they need to be creative with offerings to attract more foreign direct investment and be competitive with other popular investment markets.
“While government-affiliated developers are the ones offering flexible payment plans and rent-to-own schemes for ready homes, private players are jumping on to the bandwagon as well,” she added.
She said, “For instance, at the Al Furjan villas and townhouses, Nakheel is offering a payment plan where you can move in now and pay across seven years. Customers only need to put down a 5% deposit. Other perks include no Dubai Land Department fees, two years free service charges and two years free club membership.”
According to data from the Dubai Land Department over the past three months, the average price per square foot for ready homes in Al Furjan is Dh820 per square foot. Rent-to-own schemes could see a good take-up since tenants only need to produce a small down payment unlike the 25% sought by banks for mortgages.
Even industry giant Emaar Properties is offering back-loaded payment plans for a slew of its off-plan projects across Dubai. The developer offered post-handover payments for buyers of ready villas in Arabian Ranches 2, where the average price is Dh1,160 per square foot. Besides, Emaar is providing a scheme at a Dubai Hills Estate project where buyers of an apartment get a three year renewable business licence, three year renewable family residence visa and 100% business ownership in DMCC.
According to DLD data, Sobha Realty is offering a discount on school fees for those buying an apartment in its project, Hartland Greens, where the average price for off plan projects is Dh1,870 per square foot.
Source: Trade Arabia