Developers worry about Russian buyer exposure

16.12.2014
Experts note that there have been no reported instances of Russian/CIS buyers trying to offload their offplan properties rather than stick with them through the payment phase. Some UAE developers are taking a closer look at their off-plan sales to see the level of their exposures to overseas buyers, and especially to those from Russia or one of the CIS states, Gulf News reported.
The check is to see whether these buyers can stick with their upcoming commitments given how some of the currencies have been performing in recent days.
“They deal principally in cash transactions and do have extensive income generating assets outside of their home markets,” said one industry analyst. “They could use these to meet any payment commitments on their Dubai exposures and not rely on their rouble-based assets. Local developers need not be overly concerned, but it’s always a sound practice to see where they stand on their sales exposures to overseas buyers.”
The latest off-plan launches also have provisions where a buyer has to meet certain payment targets — anywhere between 25 to 40% of the overall — before they can sell in the secondary market.
According to Chandrakant Whabi, CEO of Acrohouse Properties, there have been no reported instances of Russian/CIS buyers trying to offload their offplan properties rather than stick with them through the payment phase. “Typically, Russian/CIS buyers have built up exposures in select established locations in Dubai and have been active on some of the recent off-plan sales as well,” said Whabi. “But it would still be interesting to see their commitment levels on the latest projects further along the payment cycle.”

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