Lucrative incentives, loans for the first deposit, long-term back-ended payment plans for up to 20 years, and a rental income guarantee: read more for these and other benefits Dubai property developers are now attracting property buyers with.
Innovative payment plans and freebees are luring investors and tenants to own a property in Dubai as developers try to offload their extra stock ahead of potential 50,000 new units future supply coming to Dubai real estate market this year.
Developers in Dubai attract clients for newly launched and existing projects by every means, ranging from extended post-handover payment plans on off-plan properties and ready homes to even providing bank financing for down installment.
Post-handover payment plans now can extend far beyond the usual three-to-five years after handover. Now it can be anything up to 15 to 20 years. But not only long payment terms are among incentives developers (and individual sellers too) use to get themselves a buyer. Rent-to-own schemes and guaranteed ROI (return on investments) are now the real estate market’s new norm born by the necessity for developers to cope with harsh competition with other investment markets and with each other.
Lynnette Abad, director of Research and Data, Property Finder, says post-handover payment plans, rent-to-own, and new schemes invented by Emaar and DMCC are the most popular among potential buyers: "Developers are very aware that they need to be creative with new offerings to attract more foreign direct investment and be competitive with other popular investment markets," she said.
According loan-to-value requirements accepted now in the UAE, the biggest part of buyers can’t afford getting bank financing for their property purchase, due to hefty deposits and fees required, to name a few reasons.
One of Dubai developers, Azizi Developments has partnered with one bank for down payment loans, and with another bank to provide the whole mortgage for a its recent residential project in
And one of the biggest Dubai developers Nakheel offers a payment plan for the Al Furjan villas and townhouses with ready-to-move-in option and payments extended for another seven years. A five per cent deposit is the only thing required from buyers to make this contract happen. Zero DLD registration fee, two years of free service charges and two years of free club membership are among other lucrative benefits Nakheel’s customers obtain together with the deal.
And according to official data over the past three months revealed by DLD, the average price per sqft for ready homes in Al Furjan is now about AED820.
Even real estate Dubai mogul Emaar Properties now provides extended payment plans for a some of its off-plan projects in the emirate, including post-handover payments for ready villas buyers in
Damac Properties is offering a guaranteed rental return for several years on its serviced apartments, while Dubai Properties lures tenants to its lease projects in Remraam and Mirdif with up to 12 cheques and a month's rent-free period.
Emerging communities such as
Today, when real estate prices are dropping, and banks are still extremely picky about lending, the above described options to attract buyers and tenants can really convince more customers. In this regard, such schemes have managed to give a powerful impetus for the demand growth in the Dubai real estate market.
Anyway, such schemes nowadays can benefit both, sellers and buyers, tenants and landlords. And in order to choose a right payment plan and avoid any pitfalls and hidden obligations, contact the professionals. We at IMEX Real Estate will help you buy or rent an apartment, villa or an office in Dubai on the most favorable conditions. Please, feel free to contact:
Tel. in Dubai, UAE: +971 (50) 2528188 (Whatsapp, Viber, Telegram)
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