Developers continue with clever incentives to attract buyers

Such initiatives have been extended to apply to ready homes as well

Developers in Dubai are pulling out all the stops to win over buyers for newly launched and existing projects. While post-handover payment plans for off-plan properties were common place in 2017 and 2018, these incentives are now available for ready homes as well. These plans run from three years to anything up to 15 to 20 years.

Recently, developers have been playing the role of banks to stimulate demand for both off-plan and ready properties with ingenious payment plans. This is because under the current loan-to-value requirements in the UAE, the majority of buyers find it difficult to raise bank finance, and establish a foot on the ladder, due to hefty deposits and fees required.

The latest incentive deployed by Azizi Developments for a newly launched scheme in Al Furjan is to partner with one bank for down payment loans while another financial institution will service the remaining portion of the mortgage.

This has been conceptualised to bring in people who cannot afford the initial down payment. The bank in question is also offering a six-month interest free facility to customers.

• For a project in Al Furjan, Azizi Developments has roped in two banks: one to finance the initial deposit and the other to fund the mortgage for the remaining price, a first for the market
• Extended post-handover payment plans, rent-to-own schemes and guaranteed rental returns are now the industry norm
• Developers get creative to compete with other popular investment markets