“This 1 per cent cost plan is among the finest methods to get end-user patrons for offplan,” mentioned a developer who has simply launched a brand new challenge in Dubai. “2024 might effectively see the return of end-user shopping for in a giant method, and builders have to be prepared with reasonably priced/simpler cost plans.”
It’s also a mirrored image that purchasing dynamics may very well be altering within the Dubai actual property market. The final 3 years had seen spectacular development in demand, which has been fueling the offplan increase. However there’s a feeling that such development will begin to stabilize – and because of this end-users are important for the subsequent part of the Dubai property market.
“Solely choose master-developers comparable to Emaar, Nakheel, Meraas and now, after all, Aldar can retain the standard promoting patterns on Dubai offplan launches,” mentioned an property agent. “Most different builders have to have some zing to their presents – and the 1 per cent month-to-month proper now could be the candy spot.”
By the way, Danube was the primary developer in Dubai to give you the 1 per cent plan. In truth, all of its developments thus far are constructed round that – and it is one technique it won’t be altering.
For potential patrons, these 1 per cent – there may be even a challenge that’s providing 1.1 per cent – provide a comparatively simpler entry. It offers them higher visibility on what their funding wants will appear to be as and after they need to take mortgages to satisfy the remainder of their funds.
Additionally, entry to mortgages are getting tighter – and costlier, with house mortgage charges within the 5 per cent plus vary. That is the place end-user shopping for is feeling the largest squeeze. Plus, additionally they need to issue the 15-30 per cent worth will increase Dubai property has had lately, no matter areas.
Already, many builders have began to decrease their upfront cost necessities, to even as little as 5 per cent. Consumers also needs to be testing what kind of cost durations are being provided.
At Expo Metropolis’s newest releases, the cost interval can lengthen to eight years on flats which are priced from Dh1.4 million and 3- to 4-bedroom townhouses that begin at Dh3.8 million. The items are to be handed over early 2026, a timeline that additionally matches in neatly on the subject of assembly end-user demand.
“If it’s end-users, handover timelines are actually as essential to the gross sales course of, and builders with well timed completion observe data are those who will profit in 2024,” mentioned the property agent. “If one has to standout amidst the flood of offplan launches within the final 2 years, assembly the promise of on-time supply is a giant plus.”