Dubai’s property sales market is witnessing a change as developers are now focusing on potential end-user buyers as opposed to cash ready investors and altering payment schedules, reported by Gulf News.
With new real estate ventures launching in Dubai, developers are allowing buyers to make small payment installments rather than invest huge sums of cash during the completion of the projects. They are enforcing schemes where buyers are required to make final payments after the property handover. This has impacted buying choices. This has been a positive step for potential buyers, particularly those who have a constricted budget, as they get to avail a more flexible payment schedule.
This is also significant because mortgage lending policy only allow buyers to borrow up to 50% of the property’s cost on a sales transaction. Moreover, post- handover payments compel developers to meet construction timelines and prevents them from running into resource draining overruns. Industry experts claim that reworking payment schedules is one of the most effective ways to get committed buyers to purchase real state. Park Investors, has been one of the first developer’s to initiate the segmented payment schedule for its 92 villas project in Jumeirah Village Circle.
The developer is also offering a 12-month interest free period to attract buyers. The project is estimated to be completed by the first quarter of 2016 and each villa is priced under AED 3 million. Similarly, Danube Group which is developing 171 town houses in Nakeel’s Al Furjan community has requested buyers to pay 10% for initial booking and another 15% within 60 days. After that buyers have the flexibility to pay 5% installments till the completion of the project. This has reduced the payment load and is giving buyers a better value for their investment.