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Discounts, bonuses, easy payment plans flooded Dubai housing market

07.06.2020
Dubai's real estate market offers real estate buyers and investors great discounts today.

While tenants rule the rental segment of the Dubai’s real estate market, the sales market today is focused solely on buyers’ needs. Developers make it easier to get to new and more profitable opportunities for rental returns from real estate investments in the off-plan, as well as in secondary units, with flexible payment terms, affordable prices, bonuses and discounts. At least this is the common opinion of most of the industry experts in Dubai.

Jason Hayes, the head of one of Dubai’s largest real estate companies, says buyers are in the best position today, as sellers in need for sale seek to please buyers in all possible ways, and are eager for almost any bargain.

“Buyers of real estate in the emirate today can easily get a discount of 10-20 percent from the asking price. For example, recently, a villa on Pearl Jumeirah, listed originally at AED20 million, was eventually sold with a 15 percent discount. But this is still quite consistent with the level of discounts observed at the beginning of the year,” Hayes revealed.

He also stressed that the ability to conduct transactions remotely, which the Dubai Land Department recently presented to all participants in the emirate’s housing market, helped buyers and sellers step back on the sales ladder again, without violating the rules of social distancing, and without having to make flights from other countries that are not yet possible.

Abundant offers

Experts from the CORE consultancy pointed out that there are currently many new best ever opportunities for real estate investments in the Dubai real estate sales market, as in new buildings (off-plan), and in the ready units as well. At the same time, payment plans and installments schedule from the developers also strike buyers with their generosity.

“As a rule, investors’ main preferences in housing are for studios and one or two bedroom apartments, since historically these units provided higher returns. However, under current conditions, most buyers have taken a wait and see attitude. At the same time, some of them defer their decision because of their own financial COVID-19-related problems caused by a general slowdown in business activity, a reduction in salaries and jobs losses,” CORE’s analysts commented.

Currently, it is recommended to pay attention to the finished and tenanted properties for sale in the well-managed communities in central areas with the best infrastructure.

“These facilities have all the necessary conditions,” experts underline.

In times of crisis, there are always a lot of new opportunities for those who have free finances and courage to take advantage of the situation.

Even before the Covid-19 situation in Dubai, there was a real surge in buyer activity and transactions. Both, home buyers and investors have realized that investing in real estate in the UAE now is especially beneficial, especially when we talk of the secondary market. For example, today a house in a well-proven villa community can cost you 40 percent cheaper than five years ago. And surely, in the nearest future, investors will be especially interested in this particular property category. This trend became obvious already at the end of April 2020, when several major luxury villa sale transactions worth tens of millions of the UAE dirhams were concluded in Dubai.

It should also be noted that real estate prices in the UAE as a whole are gradually decreasing, so you should not expect that the average real estate prices will fall sharply in the short term, experts suggest.

Lewis Allsopp, CEO of Allsopp & Allsopp, also offers investors who are cautious about off-plan deals due to their potential uncertainty, to better look for attractive options in the secondary market.

“In Downtown Dubai there are plenty of properties for investors offering up to 7.5 per cent of ROI. Taking to account that the average ROI is 4–5 per cent for Downtown Dubai, which is rather high level when compared to other global centers, the above mentioned options offer 50 per cent more profit,” explained Allsopp.

However, when considering such extremely advantageous offers, you should pay extra attention to what is said in a contract and take into account all the slightest nuances.

Today in Dubai, developers such as Signature, Ellington and Vincitore can guarantee their customers rental income of 8% per annum for a certain period of time. Besides, each developer has its own way of honoring the guarantee, which also depends on the payment plan chosen by the buyer.

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Required documents:

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