To maintain the strong momentum in off-plan property sales, a growing number of developers in Dubai are beginning to offer attractive monthly payment plans, specifically set at 0.5% per month. Historically, it was common for some of the city’s leading developers to implement a standard monthly payment plan of 1%. However, in a notable shift, certain developers are now reserving the 1% plan for select projects, while others are broadening their offerings to encompass all new launches in their portfolios. This strategic move is aimed at making property investments more appealing to potential buyers.
These flexible instalment plans are particularly advantageous for prospective homeowners who either do not qualify for or are facing challenges in securing a mortgage. In addition to adjusting payment plans, developers have recently taken proactive steps to directly reduce property prices, with some properties seeing reductions of up to 20%. This trend of offering significant discounts and manageable payment structures arrives at a critical juncture when market analysts report growing concerns among potential buyers regarding the high initial costs associated with off-plan property purchases. Additionally, many of the newest projects are not expected to reach handover for another three to four years, which further exacerbates buyer hesitancy.
Currently, off-plan sales constitute a significant 50-60% of all residential property transactions in Dubai each month, reflecting a robust demand amid record-breaking new launches during the first half of 2024. The introduction of a 0.5% monthly payment plan is seen as a progressive step to enhance accessibility for potential buyers, making homeownership within reach for many.
This trend extends beyond Dubai; neighbouring Ras Al Khaimah, another freehold market experiencing increased interest and rising property prices, is now beginning to roll out payment plans that also fall below the 1% mark per month. In essence, developers are positioning themselves as financiers, catering especially to first-time buyers and international investors who may find traditional mortgage arrangements daunting or unattainable.
As this under 1% monthly payment trend gathers momentum, it is likely to permeate other Emirates, as developers strive to make homeownership more affordable and appealing to a broader spectrum of potential buyers in the region.
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