As Homebuyers Deal With Increasing Mortgages, The 1%/Monthly Payment Is Becoming More And More Popular.
Dubai developers are reinstating the lengthy post-handover payment terms; recent off-plan launches even included “7.5-year” clauses. The goal is to allay buyers’ concerns about rising mortgage rates. Especially since there will be at least a couple more increases later this year.
Another well-liked payment schedule, which Danube Properties had pioneered is currently making the rounds off-plan. This is the monthly installment of 1% with terms up to 99 months. It is noteworthy to note that many of these launches fall into the more accessible price range. With entry-level prices of Dh500,000 or more and a two-bedroom unit costing between Dh1.5 million and Dh2 million. Based on the location and the developer’s numerous value-adds.
“Dubai real estate needs both cash buyers & end-users with mortgage plans.” “It was a no-brainer to bring back lengthy post-handover preparations. Otherwise, the market runs the danger of losing prospective buyers who would get fixated on mortgage rates. The 1% per month offer allows them the freedom to organize their budgets, often without consulting any banks at all.
Because they have observed how recent launches with prices under Dh2 million hit the investor sweet spot. These developers are now becoming even more accommodating to buyers about their payment plans. Moreover, while previously buyers tended to be older, these launches were attracting first-time buyers into the Dubai property market. A majority of whom were in their late 20s/mid-30s.
According to all appearances, Dubai’s real estate market remained active over the summer. Although the decline in mortgage-backed transactions was also apparent. For salaried and cost-conscious purchasers, the past two increases at 0.75% each will have been rather significant.
Estate agents stated, “As in the past, developers must step up their efforts to persuade purchasers that now is still a good time to buy.” “Because the outcome of the impending off-plan launches depends on this. At the Dubai South projects, as well as at Al Furjan and a few other developing sites in Dubailand. There will be numerous extended post-handover plans.
Emaar Beachfront, a new one, is also beginning to establish a reputation with investors. One of its listing partners on the website houza.com, Betterhomes reported, “handovers have already begun with residents taking up residence in some of the finished towers including Beach Vista.” “However, there is still a lot that is being built, with handovers scheduled for from now to 2027.
“Having said that, buyers continue to have a very strong desire for it. As more purchasers recognize the potential of a project that is fully finished. Betterhomes Group is currently witnessing launches sell out on the same day and sales just on the secondary market achieve significant premiums close to unit deliveries.
Hoping for Expo City
One of the most eagerly awaited developments in the real estate industry is the new location that will occupy Dubai’s Expo site. Details about the residential portion of Expo City are awaiting, though people will begin working from the renovated buildings there in October.
Developer: “Expo City will boost investor demand and interest throughout Dubai South; that much is certain.” “Because all the offices that will be built in Expo City starting in October will have a local need for staffing, and Dubai South will be an obvious solution.
“The action has just begun.”