Are you considering buying a property in Dubai? Developers and individual sellers offer various incentives to address buyer concerns about increasing property prices, mortgage rates, and potential global economic downturns. Some important deals are currently available.
These enticing offers include substantial discounts from developers with off-plan projects in Dubai's rapidly growing freehold zones. Limited-time values can exceed 20% of the listed prices in some new launches.
There are two observable sales trends.
First, developers offer few significant incentives for luxury properties in Dubai, as there is still enough demand from international investors looking for high-end homes and willing to pay cash.
Second, in the mid-market/affordable housing segment, developers reintroduce discounts, 1% monthly payment plans, and extended repayment periods of up to 8-10 years.
So, where can potential homeowners find bargains?
It depends on the developer, but buyers can negotiate favorable selling prices by closely monitoring new off-plan releases outside the primary development zones.
Mortgage-Related Concerns Mortgage costs will continue rising through 2022, with a 0.5% interest rate hike on December 14 as the peak. This is primarily due to developers expanding direct purchase options. End-user property buyers are particularly concerned about the upcoming rate increase in February and subsequent hikes.
However, Dubai's foreign investor activity will remain strong throughout the year. Developers recognize the need to persuade customers by offering additional incentives.
Instead of discounts, payment plans are being used as an alternative. Sales promotions targeting mid-market homes feature monthly payment plans of Dh3000 or less, sometimes over ten years. According to brokers, payment plans at these levels are popular among end-user buyers who don't have to worry about rising mortgage rates. Developers with ready properties and similar payment plans are better positioned, benefiting buyers as well.
Developers have addressed this issue in some projects too. An upscale townhouse development in Meydan is being promoted with a guarantee that owners will not have to pay service fees.
Where Should Buyers Look?
Areas expecting a substantial delivery of completed homes this year will likely experience more aggressive marketing. Look for rent-to-own deals and inquire if developers will waive Dubai Land Department fees or at least cover half. While at it, understand service charges and potential increases from the handover period.
