Most notably, incurring fees of 10 years ... and a 50% discount on purchasing the second unit ... and a "zero" advance payment
Realtors: Developers' facilities lure new investors to enter the Dubai market
Dubai real estate has reached very attractive levels to buy.
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Real estate developers confirmed that the incentives and facilities provided by real estate developers in the Dubai market are now tempting new investors to enter the market.
They attributed the real estate developer 's resorting to offers to his need to maintain a good level of cash flows, and not to borrow from banks, given the benefits that this entails in servicing the debt.
They pointed out that real estate in Dubai has reached very attractive levels to buy, and that the right time to buy is now, especially with these market incentives such as good prices and great investment returns.
And they expected that the "appetite" of real estate investors would increase in conjunction with the approaching hosting of the exhibition "Expo 2020 Dubai", and the opportunities that the exhibition will provide in terms of job opportunities, a large proportion of which are sustainable.
And «Emirates Today» monitored the introduction of real estate developers incentives and facilities to stimulate the movement of sales, including the bearing of fees for the Real Estate Regulatory Agency in Dubai (RERA), which reach some real estate development companies up to 10 years, in addition to facilities in the advance payment, down to the «zero payment First »in some offers, and the ability to pay in monthly installments, in addition to discounts of up to 50% on the purchase of the second real estate unit.
Fierce competition
In detail, the managing director of "Harbor Real Estate Company", Muhannad Al-Wadi, expected an improvement in real estate performance during the year 2021 - in conjunction with "fierce competition" by real estate developers to obtain a good share of investors wishing to invest in the market now, pointing to the increase in promotional offers from Real estate developers have been widely accepted as of late.
Al-Wadi explained that the promotional campaigns by the developers aim to maintain a good flow of liquidity, to run the developer's financial affairs at this time, considering this a good solution, given the financial burdens the alternatives carry, such as the developer borrowing from banks.
Alluring levels
For his part, the real estate developer, Chairman of Al-Waleed Investment Company, Muhammad Al-Mutawa, said that real estate in Dubai has reached very attractive levels for purchase, in conjunction with incentives and facilities provided by real estate developers, which have appeared in many promotions since the beginning of this year. .
He stressed that promotional offers are important to stimulate market movement, especially at this time when supply exceeds demand by stages.
Al-Mutawa added that bearing the fees of the Real Estate Regulatory Agency in Dubai (RERA), or part of it, as well as the fees for services and maintenance, payment facilities, and the down payment that some have reached a "zero" value, which was among the most prominent offers that real estate developers resorted to in The last period to stimulate sales.
Al-Mutawa stressed that now is the most appropriate time to make a decision to invest in the real estate sector, given the increasing returns on this type of investment in the long run, especially that Dubai is a model for good investment, in addition to the expected market momentum with the approach of Expo 2020 Dubai.
More realistic
For his part, the CEO of "W Capital Real Estate Brokerage", Walid Al-Zarouni, said that now is the most appropriate time to make the decision to invest in real estate.
He added that real estate developers have become more realistic than before, and this is evidenced by the price reduction offers that they offer, and payment facilities of up to four years, with an advance payment ranging between 1 and 5%, in addition to bearing some fees such as "real estate registration" that reach Up to 10 years for some developers.
Al-Zarouni said that the pressure in the real estate sector was due to the abundance of local supply and the decline in oil prices over the past years, which affected local, regional and global investments, pointing out that this prompted companies to search for liquidity to reduce risks.
Al-Zarouni expected that 2021 will represent a great opportunity for a recovery, albeit somewhat slow, supported by measures to confront the pandemic.
Alluring levels
The CEO of "Standard Real Estate Management", Abdul Karim Al Mulla, agreed that real estate prices in the Dubai market have reached very attractive levels for purchase, pointing out that many individual investors have started to buy.
Al-Mulla expected that the "appetite" of real estate investors would increase in conjunction with the approaching hosting of the exhibition "Expo 2020 Dubai", and the opportunities that the exhibition will provide in terms of job opportunities, a large proportion of which are sustainable.
He stressed that the appropriate time to buy is now, especially with these market incentives such as good prices, large investment returns, attractive incentives and offers, pointing out that the increase in supply is what pushes real estate developers to increase these real estate offers, including bearing property registration fees.
The real estate market in Dubai is mature and fortified with legislation
Chairman of the Board of Directors of "Sahab Real Estate Company", Abdulaziz bin Hoyden, said that the volume of supply is one of the main factors in the stability of the real estate market in Dubai.
He explained that the increase in supply in the pre-pandemic period, during the fourth quarter of 2019, led to a decrease in prices by 4.4%, followed by a decrease in the first quarter of 2020 by 3.5%.
He added: “Today, after this vital sector has shown great flexibility and ability to face crises, it is expected that real estate developers will achieve a balance between supply and demand, by draining the quantities of real estate supply in the market and temporarily stopping the construction of new projects, which will undoubtedly lead. "To stabilize prices again, knowing that the economic stability enjoyed by the state will encourage individuals and companies to invest more."
Bin Hoyden added: “Yes, the discount rate on real estate prices may vary from one developer or owner to another, according to his own circumstances, but the real estate market in Dubai remains mature and is characterized by transparency and stability, in addition to being fortified with a wide range of legislations and laws that do not leave A room for anyone to manipulate prices, whether by flying them in an exaggerated manner, or reducing them to the point of burning prices.
Bin Hoyden expected that the pricing curve will turn up again during 2021, to achieve good levels at least, pointing to the great government support for this vital sector, with the presence of attractive factors for the growth of real estate demand in the country such as policies of openness to the world, cultural diversity, and soft power. And the messages of friendship and peace that the UAE sends to the whole world, as all of this was reflected in supporting the demand and achieving stability in the economic situation.
Bin Hoyden said that reducing prices in an exaggerated manner in pursuit of liquidity and completing rapid sales operations will not be in the market's interest at all, and will negatively affect prices, especially as we are still in the early stages of the start of recovery and exploring the near future.
Abdulaziz bin Hoyden: "Reducing prices in an exaggerated manner will not be in the market's interest."
Al Hammadi: Pros and cons of bidding strategy
The Chairman of the Board of Directors of "Union Real Estate Company", Khalifa Al Hammadi, indicated that there are pros and cons in the strategy of increasing bids by real estate developers.
He said that the positive aspect lies in the fact that the offers raise the expected return for the investor, which makes the project more willing to buy, and it also allows the developer to reduce the number of units faster if he needs liquidity, or is motivated by reducing risks, while the negatives are in the lower profit margins of the developer, In addition, the offers sometimes indicate that the prices of the sector are on the decline, which may cause concern to some investors, in addition to that such offers can put pressure on the prices of high-quality projects.
Al-Hammadi indicated that there is significant interest by investors and buyers, pointing out that the year 2021 is the beginning of the recovery, albeit a bit slow, but it is supported by the new measures taken to confront the pandemic and the changes that the sector has witnessed.
The supply and demand equation governs the market
The general manager of "Roots Real Estate Brokerage", Fadi Bush, said that the direction of the real estate market is determined by the supply and demand that governs the market in general.
He explained that it is a result of the current conditions imposed by the "Covid-19" pandemic on markets in general, and its negative impact on many sectors, such as tourism.
Travel, and investor anxiety due to the current situation, along with the large number of investment projects and competition, have led to pressure on real estate development companies to offer offers and facilities to real estate investors who prefer the purchase process for private ownership.
He pointed out that the offers in the market are realistic, and they are a result of the current economic situation linked to the repercussions of the pandemic.
Harib: Current indications are encouraging
The founder and director of the "Royal Liwan Company" for Real Estate, Muhammad Hareb, said that the real estate market has witnessed reductions in the price of the property by the real estate developer to obtain cash liquidity, indicating that some have decreased the value of the property to more than 30%, considering that a good thing for the final consumer However, be careful with some offers.
Hareb emphasized that increasing the number of those who received the new Corona virus vaccine will undoubtedly contribute to stimulating transactions in the real estate sector, as it is an indicator of controlling the virus and the return of activities to their normal nature, pointing out that the current indicators call for optimism, and the psychology of the real estate investor is constantly improving. .
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