Real estate reported that the advance payment facilities by developers, which in some offers reached (zero), contribute to attracting a segment of investors to the real estate sector, thereby stimulating the state of demand in the market.

They clarified, for "Emirates Today", that the challenges of "Corona" prompted the developers to focus on the local market during this period, especially the average financial owners and tenants who want to own property, who cannot pay a large down payment when reserving the housing unit.

Innovative solutions

In detail, the CEO of Seven Line real estate brokerage, Mohamed Salman, said that "providing unprecedented innovative solutions in the ways of payment for housing units would give impetus to the real estate sector in the local market," noting that many companies tend to provide These solutions, in order to stimulate sales to him, especially in the periods of calm in the real estate sector, and these solutions are currently focused on down payment facilities, which ranged between 5 and 10% in many of the offers in the real estate market, and in some offers reached (zero).

He added that there is a trend by the real estate developer, towards attracting a segment of real estate investors from the local market, especially among the owners of medium financial sheets and tenants who want to own property, in conjunction with the challenges of the Corona virus, which has closed relatively new investments from abroad, and is expected to take It takes time to return to normal levels.

Downpayment

In turn, the CEO of "Standard Real Estate Management", Abdul Karim Al Mulla, said that "the down payment, which was previously up to 25% of the value of the property, and this matter is no longer present, in light of the challenges that the Corona virus imposed on the developers." , Regarding projects on the map, whose sales declined in light of the current crisis », confirming that the developer has become focused on the local market at the moment, which will increase the facilities related to the first payment, to attract a new segment of real estate investors of medium size.

He pointed out that providing greater facilities in the payment plans for the real estate units sold by the developers would stimulate sales and investment in the real estate market, pointing out that companies started providing financing solutions to pay for the housing units in innovative ways, stressing at the same time that the company with the offer The best innovator, who will sell real estate units, given the calm market demand.

Real estate developer

For his part, Vice President of the International Federation of Arab Realtors, Dr. Mahmoud El-Borai said, “Real estate developers are aware of the importance of innovation in new offers to attract more investors to the market, which is what appeared in relation to the first installment, which is an obstacle in many investment decisions. With regard to real estate, due to the high cost of the property, which raises the amount of what the investor pays at the beginning of the contract to prove the seriousness, which makes many investors do not take the decision to enter the market easily ». He pointed out that many of the tenants want to own a property in the Emirates, but most of them are of medium and weak owners or employees, which was realized by the developers in the recent period, especially in conjunction with the implications of "Corona" and the calm demand.

Al-Borai stressed the real estate developer’s tendency to lower the down payment rate, and this is expected to contribute to attracting more investors to the real estate sector, especially with good market opportunities.

Market variables

The real estate expert, Walid Al-Zarouni, said that the real estate market has undergone many changes in the past period, coinciding with the sector's passing through the challenges of the Corona virus, which prompted many developers to provide a set of facilities, most notably the advance payment facilities, which reached unprecedented levels In flexibility by the developer, any investor who has a small amount can enter the real estate market.

Al-Zarouni expected that the real estate market will attract a new class of medium-net financial investors or tenants who want to own an alternative for rent, pointing out that those who have 20 thousand dirhams can own a property in the Emirates, where there is a group of real estate offers on the scheme, in which the value starts The first batch of about 5%.

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