Master-developers and those with proven track record of delivery will have the edge if investor sentiments in Dubai’s property markets were to tighten further, according to the findings of an industry survey complied by the law firm Hadef & Partners. This will force non-Tier A developers with having to “get more innovative and offering something more” to win over buyer confidence.
That could even mean sacrificing on their offer pricing. As high as 70% of respondents in the survey believed that sub-developers need to come up with “better payment plans, lower prices and more balanced contracts” to get into their off-plan projects. This could have ramifications for the entire industry as a raft of new off-plan projects were launched by private developers recently, both in established locations and, more so these days, in newer locations further away from the city centre.
The current market situation could force more developers to begin off-plan launches at the earliest to mop up buyer interest at the earliest. This they can do by putting up bank guarantees in lieu of the 20 per cent project completion requirement they would otherwise have to do.