Developers and buyers: two views of the real estate market in Dubai
Real estate developers in the UAE continue to offer all sorts of discounts, fee waivers, registration fees and other bonuses to buyers as transaction volumes remain low due to oversupply amid the economic slowdown caused by the coronavirus. So if you want to purchase apartments in Business Bay, UAE, the best time is right now.
New incentives from developers
The developer of the entire Dubai South area in Dubai has introduced a lease-to-ownership scheme for new tenants at The Pulse, near the Expo 2020 exhibition site.
Recent incentives have also focused on reducing upfront purchase costs, as seen in the recently introduced lease-on-purchase scheme in Dubai South, or on broad promotions such as:
discounts on upfront prices,
service fee waivers
and extended payment plans after completion of construction.
Maintenance fee waivers, Dubai Land Department collection discounts, long-term advantageous off-plan housing payment plans, extremely low down payments and even gifts of cars or bicycles are among the special offers from developers. Payment of various fees and charges was also included in this set of bonuses, but most often referred only to the payment of the registration fee of the Land Department upon purchase (4% of the cost of housing).
There have been proposals to pay service fees from developers, but the most they could offer was to keep the service fee at the same level for the first three to five years after the project was put into operation. But what Reportage Properties, a real estate developer from the UAE capital, Abu Dhabi, has done in Dubai is certainly the first of a proposal of this magnitude. Reportage Properties is offering property buyers a building maintenance fee waiver for 10 years after purchase. This applies to all real estate transactions that the company's clients will make in relation to the properties of the developer's projects in Dubai and Abu Dhabi.
The concept of "service payments" includes a fee for the maintenance and maintenance of the building. This is not only an actual and potential overhaul, but also much more, including cleaning and maintaining the pool (if there is one in the building), maintaining green spaces, maintaining a gym, common areas, various sports and children's playgrounds, recreation areas, etc. etc., and other additional amenities, which can be a lot (in a luxury apartment) or a little.
In addition, the developer also has a profitable payment plan - homebuyers from Reportage Properties can pay a 10% down payment, and pay the rest in installments of 1.5% over the next 50 months. Reportage is currently implementing 10 real estate projects that will add about 4,000 new housing units to the housing stock in Dubai and Abu Dhabi.
“The highly changed commercial environment in 2020 has reiterated the urgent needs of the industry and a call to action for leading real estate players to adapt faster and provide more flexible and smarter solutions for tenants and homebuyers,” said Rashed Al Omaira, CEO of Aldar properties.
And although buying activity in the market is already clearly improving, there is still a lot of real estate stock that needs to be sold. According to JLL, about 38,000 real estate units are planned for commissioning in Dubai in the second half of the year.
Ready-made houses - in special esteem among buyers of real estate in Dubai
Property Finder portal reports that the demand for the ready-made villas in the Dubai real estate market has been especially high since the COVID-19 pandemic.
July saw the highest number of villa and townhouse sales in a single month: 493. This number increased by more than 58% compared to the same period last year. Among low-rise areas, buyers of villas and townhouses prefer:
• Arabian ranches,
• Dubai Hills Estate,
• Palm Jumeirah,
• Damak Hills
• and springs.
One reason for this trend is due to the high demand for larger properties with more outside space. During the crisis and self-isolation, people began to actively look for larger real estate, with their own open-air plot. Therefore, according to the same data, the main demand has shifted from traditional small-sized apartments to villas and townhouses.
The same is true for rental housing.
Real estate agency in Dubai
A help of professional is what you need when purchasing real estate. Ax Capital can offer assistance from the professional brokers, who will navigate the market for you. Visit the website and start your journey towards a housing in a beautiful emirate.
