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“Buy Now, Pay Later” – Dubai Developers come up with Attractive Offers

Buy now pay later

Despite experiencing downturn and weak spell of buying activity in Dubai real estate market, developers have come forward with long term plans to shrug off the negative impact. As around 120 development projects are recently announced, developers are now solely focusing on attracting investors and offering flexible payment plans that run post property handovers. They are slashing down payments and offering off-plan properties on deferred payment plans “buy now, pay later” – to attract more and more investors as the demand weakens.

“The decline in demand leads to decline in Dubai property prices, due to which developers have come up with new plans such as to offer payment plans that require smaller upfront deposits, with the rest to be paid after completion,” states Director Terra Casa, Zishan Khan. The “Wealth Gauge Property Report” report published by Mashreq Bank revealed that the real estate developments with attractive and innovative payment plans were the need of the hour. There was huge demand of back-loaded schemes such as off-plan properties, whereby developers demand most of the payments to be made only after the property is handed over.

Joining the array of developers who have come up with flexible payment plans is Aldar Properties by announcing a 30-70 payment plan for its 400-unit Meera Shams apartment towers on Reem Island, in which customers pay a 10 percent deposit, followed by four instalments of 5 per cent each in the run-up to handover, when the final 70 per cent has to be paid. The developers believe that they can entice buyers using the affordability hook and make them invest in Dubai properties.

Seeing at other examples, we find that Danube Properties has also marketed its latest Glitz3 project with a plan that allows buyers to pay 10 per cent upfront, a further 15 per cent within 60 days and the remainder at 1 per cent per month throughout the construction period. Another developer named G&Co has come up with an even more generous payment plan at its new Dh1 billion Jade at the Fields project in Mohammed Bin Rashid City, whereby developer asks investors to pay just 5 per cent of the value of a property, followed by a further 6 per cent every six months over the three-year building programme.

A further 15 per cent is payable on completion, totalling just half of the building’s overall value. The rest can be paid in quarterly instalments for three years after the handover.

There is too much of noise being made nowadays about current slowdown of Dubai realty market but this cannot distract developers who think long term. They have been announcing off-plan developments with flexible plans and urging buyers that they must invest in Dubai real estate sector.