Longer periods of payments and smaller installments become a norm in the Dubai off-plan property sales market, says new report by CBRE.
Now off-plan property buyers can pay off the cost of their property not only till the end of construction, but also during a long time after the completion of the project. In addition, the amount of the installment also decreased significantly. Experts from CBRE suggest in their latest report, that this is the way how Dubai developers are planning to attract more end users, without relying too much on investors. Payment plans are so attracting, that this argument becomes even more important for property buyers than, in fact, the cost per square meter — says the report by CBRE.
According to CBRE, residential property prices in Dubai have fallen by an average of 2% in Q2. But some market segments have lost in price much more than others. Thus, premium property prices declined markedly due to lower demand from foreign investors, while affordable housing, on the contrary, showed increased popularity.
Besides, real estate developers also are more likely to provide favorable conditions for affordable housing units payout, rather than for luxury housing segment. Therefore, housing prices in such traditionally affordable Dubai communities like Al Nahda, Hor Al Anz and Discovery Gardens have not changed significantly in the second quarter.
As for the secondary market, an average annual prices growth by 1% is still observed there, according to CBRE. And future market demand, as well as investor’s interest in this segment, will greatly depend on whether prices for second homes in Dubai would return to the level of second-third quarters of 2013. In any case, CBRE experts believe that any significant changes in Dubai property market as a whole may occur no earlier than in the beginning of the fall.