Developers stretch out payment plans

23.12.2014
Transactional levels are slowing down in Dubai, which requires developers to be extra careful with how payment plans are structured. Developers with new off-plan launches in Dubai are now working on reducing the burden imposed on the buyer by the upfront payments as well as on their mortgage installments, Gulf News reported. Generous payment schedules is going to become key when looking at off-plan launches in the future.
The Danube Group is launching the Glitz — the first residential project at Studio City, a project from Tecom and located near Motor City — with a payment plan that requires up to 75% of the payments to be paid via 1% installments each month and the lowest in the market. The intention is to make it as accessible as possible for a buyer — preferably an end-user — with a monthly income of AED20,000 and more.
“Transactional levels are slowing down in Dubai, which requires developers to be extra careful with how payment plans are structured,” said Rizwan Sajan, chairman of Danube. “The best way to do so is to keep the monthly outgo of an investor within certain bounds. Our arrangements with banks ensure that a buyer at Glitz can maintain the 1% monthly installment — which works to AED4,750 on a studio and AED8,000 for a one-bed — over 75 months.

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