Making Things Attractive for the Buyer with Easy Payment Plans
‘Buy now, pay later’ seems to have become a popular mantra among the real estate developers in Dubai. Of late, the Dubai realty market is seeing some intense competition among the developers. Each developer is doing its best to make things easy, simple and attractive for the buyer. One of the ploys that developers have taken to is easy payment plans.
Each developer is coming up with its own payment plans. What is common in each of these plans is a small upfront deposit, followed by multiple instalments at multiple stages of the property’s development. Depending on the developer, the sums that are paid, prior to handover, range between 30-50% of the value of the property. Buyers can pay the rest of the amount at the time of possession, and in some cases, even after possession. On top of this, the initial amounts that the buyer pays is being held in an escrow account by a trusted third party.
These easy payment plans are a direct result of the prevailing market sentiment. The investors are no longer keen on bearing all the risks of development. After all, the market has now learnt its lessons.
Things in the Market Are Now Looking Much Stable
The government has played a key role in keeping things cool and bringing stability to the market. Besides hiking the registration fees, controlling measures were put into place that limited mortgage lending. Although this has had a negative initial impact on the market, the long-term scenario looks secure.
According to the recent regulations of the Central Bank of UAE, for off-plan properties, the buyers and investors can only borrow a maximum of 50% of the value of the property. And, all projects must be registered with the Dubai Land Department (DLD).
A Change in the Developer’s Perspective
There has also been a monumental shift in the developer’s perspective. With demands rising for affordable homes, the focus is now shifting to the mid-income segment. A blend of class and comfort has become the goal. A number of developers have announced quite a few affordable projects.
There is an air of optimism that is developing around the property market in Dubai. In the run up to the World Expo 2020, the real estate market will receive a lot of impetus. This will have a direct impact on the resale and rental yields. Even now, the rental yields in Dubai are far higher than what one may obtain in other major cities around the world. And Dubai’s tax-free policies just make things even more enticing for buyers and investors.
Aurum-Re invites you to take advantage of the changing dynamics of the present day Dubai real estate market. Now is the time!