Discounts, Payments, and Even 0% Service Fees for Buying a House in Dubai

For The Third Year In A Row, Dubai Developers Are Pushing Hard Offers To Increase Sales Momentum.

Do you want to buy a home in Dubai? Then, as developers and individual sellers try to offset buyer concerns regarding rising property values, mortgage rates, and whether the world economy is headed for a recession. Some of the most significant incentives are available for the taking.

The sweetened offers are already reflected in fairly substantial discounts from more developers with off-plan projects in the city’s rapidly emerging freehold zones. The size of the limited-time ‘discounts’ at some new launches exceeds 20% of the listed prices.

We can see two sales patterns. For luxury property in Dubai, there are few major rewards on offer from developers, according to an estate agent. There is still enough demand from global investors looking for high-end homes who are willing to close on cash. The second stage is in the mid-market/affordable estate space, where developers are reintroducing discounts. 1% monthly payment plans, and longer repayment plans of up to 8-10 years.

In addition, where can property owners find bargains? Depending on the developer. But if you pay close attention to new off-plan releases outside of the main development zones. You might be able to negotiate favorable selling prices.

Concerns Relating To Mortgages

Mortgage costs will continue to rise through 2022, with 0.5% interest rate hike on December 14 serving as the cap. This is largely due to the expansion of direct purchasing options from developers. End-user property buyers are most concerned about the upcoming rate increase in February as well as the subsequent increases. According to real estate sources, Dubai‘s foreign investor activity will remain strong throughout the year. However, developers are aware that they must do more to persuade customers.

Payment plans would be an alternative to discounts. For mid-market homes with monthly payment plans of Dh3000 or less, there are sales promotions running. Occasionally over a ten-year payment period. Broker: Payment commitments at these levels are popular with end-user buyers. They do not have to be concerned about rising mortgage rates or anything like that. A developer is in a better position if he has a ready property and is supporting it with similar payment plans. Buyers are, too.

Service Fees As Well

Are you concerned about service fees? Developers have taken care of that at some projects as well. An upscale townhouse development in Meydan is being advertised with the guarantee that owners will pay no service fees.

Where Do Buyers Need To Look?

Any area where there will be a significant delivery of finished homes this year should experience marketing that is more aggressive. Keep an eye out for rent-to-own deals and ask developers if they will forego paying Dubai Land Department fees. or at the very least cover half of it. While you are there, get a clear understanding of the service charges and any potential increases from the time of handover.