It’s raining offers in Dubai property
Developers go all out to entice buyers at Dubai Property Festival
Developers were out in full force to attract end-users with sweetened offers on the first day of the Dubai Property Festival on Monday. It is being organised on the sidelines of the International Property Show at the Dubai World Trade Centre.
The festival has opened up a new sales platform for Dubai-based developers in the first half of the year, with Cityscape Global dominating the second half. The offers range from discounts on sales prices, registration fee waivers and low down payments. With this, developers hope to catalyse activity in an otherwise subdued Q1-18 for property sales in Dubai.
“This is the first Dubai Property Festival promising major discounts and incentives. International investors from India, Russia and China may have a particular interest in the promotions offered. With the current buyer market status and thanks to this festival, we could see a short-term boost in sales volume,” says Haider Tuaima, head of real estate research at ValuStrat.
“The Property Festival serves multiple purposes: to raise awareness in the marketplace, to provide a discounting mechanism as a way of stimulating sales, as well as bringing developers under one roof such that buyers can compare prices and information. As a mechanism for raising awareness, it will be an effective platform. However, stimulating off-plan sales will be more of a challenge as these post-handover payment plans with discounts have been in place for a while,” observes Hussain Alladin, head of IR and research at Global Capital Partners.
Waiver of Dubai Land Department (DLD) registration fees is the most common offer available from developers. Emaar is waiving the 4 per cent DLD fees on all sales at its Sunrise Bay Tower 2 in Emaar Beachfront from April 9 to 12.
Customers who buy selected properties from Dubai Properties at the Festival this year will be entered into a draw to win their final installment paid in full by the developer up to the value of Dh1 million. In addition, there is a 100 per cent DLD fee waiver on selected projects.
Azizi Developments is offering a one-off price of Dh550,000 for a studio at its Riviera community in Mohammed Bin Rashid City and Dh420,000 for a studio in Victoria – also in the same master-development. The developer also has a 50:50 payment plan for the duration of the 3-day festival.
The property arm of MAG Group has furnished studios from Dh490,000 at its Dh4.7 billion MAG Eye development in Meydan. MAG is also providing an attractive payment plan that allows buyers to pay 35 per cent for the first 18 months and the remaining 65 per cent upon completion.
“This first time government-led event creates a platform for state-backed banks and developers along with private entities to offer a one-stop solution to buyers and investors to compare projects, finance options and ancillary services. This is expected to offer better deals for investors and end-users and will naturally boost short-term sales,” explains David Godchaux, Group CEO of Core Savills.
Al Mazaya Real Estate is offering a Dh60,000 waiver at ready units in Queue Point 3 and Q-Line 2 in Dubailand. Bulk deals also get a DLD fee waiver.
Danube Properties is offering a 2 per discount for units in its newly launched Jewelz project in Arjan. For instance, for a studio priced Dh468,000, you get an approximate discount of Dh10,000.
Diamond Developers is waiving DLD registration fees for its Green Diamond One project in Arjan. While cash buyers get a 3 per cent discount, those buying in bulk get a 5 per cent discount or savings equal to Dh3.5 million. They are offering a 30:70 payment plan with the project getting ready in July.
Tiger Properties is offering 5 to 12 per cent discount on units in O2 Tower and Square in Jumeirah Village Circle, and Al Jawhara in Jumeirah Village Triangle.
Developer incentives at the event is likely to give a short-term boost to sales. “I do not think the overall effect will be more than neutral in a market that is generally suffering from oversupply in outer areas. Offering short-term fiduciary advantages to buyers may well improve short-term sales figures before Ramadan and summer by enticing potential buyers who were already active in the market with attractive deals. But it will unlikely create significant new demand,” adds Godchaux.
Distressed properties are also being auctioned live at the event. “This gives buyers the opportunity to acquire at considerably lower entry prices, although this favours cash buyers due to the inability to secure finance for auctioned properties,” reckons Godchaux.
Banks are also on site to incentivise buyers by waiving processing and valuations fees and giving on-site loan approval.
Abu Dhabi Islamic Bank is offering a preferential rate on ready properties. It is showcasing the lowest profit rate, with bank margin starting from 1.85 per cent on home finance. Customers can also enjoy no processing fees, free property insurance, discounted valuation fees and grace period of up to 6 months.
Meanwhile, Rakbank is offering an interest rate of 3.49 per cent and offset mortgages, particularly for self-employed customers. Also on offer is zero approval fee (a waiver of Dh5,250), zero valuation fee (reduction of Dh3,150), fixed rate of up to 5 years and on spot approvals. “It is open to all developers who have a title deed in place,” said a bank executive.