This is one of the most exciting phases of off-plan real estate sales in Dubai. What started as a spark in monthly payment plans for under-construction properties, becoming infamous as 1% per month, has today turned into a full-blown fire with every developer jumping on the bandwagon by offering monthly payment options and most recently a post-handover payment plan to off-plan property buyers.

A major developer recently reported a sudden spurt in sales when it launched a mouth-watering payment plan of 40-60, with 40% down payments and 60% payable in 4 years; post-handover of the property! The same developer sold properties like hot cakes with a 90-10 payment plan during peak times in 2007. Fast forward to today in 2017, you realize the paradigm shift the real estate market in Dubai is undergoing and how the real estate market has evolved. It is important to note that this is the first time that this developer ever launched a post-handover payment plan. Another major real estate developer had its sales centres working overtime when it ran a special promotion of 10-90- 10% down payment and 90% payable on handover.

Every real estate developer is worth its salt, with both big players and smaller players having launched projects in 2017 offering as low as 1% down payment and up to 40% post-handover. It may not come as a surprise that potential end users may be spoilt for choice with the plethora of options available in the market with post-handover payment plans. Savy buyers in today’s market can overcome the need for a mortgage if they choose and negotiate the right payment plan for an under-construction property. Recently I saw an advert that screamed “Launching for the first time, your own customized payment plan". Really? Now where does this stop?? As markets get competitive and developers vie to grab the buyer’s attention, it will be very interesting to see how the market absorbs this new-found strategy by developers.

Having said that, it can be very difficult for a buyer to resist the temptation of signing the dotted line and making a down payment. After all, who doesn’t feel the thrill of buying a property? However it is imperative not to get carried away and jump into the fray. One must evaluate the property as a whole and consider a lot of factors before putting down that deposit to secure the property. Factors like location, view, size of the property and developer credibility play a major role before you choose an off-plan post-handover property. The most important factor is the price, of course developers build in the cost of financing into the ticket value of the property as we all know that there is nothing called a free lunch.

Chosen carefully, this is one of the best times to buy that piece of Dubai dream you always wanted, whether it is for end -use or investment.

To make an informed decision and ensure you choose the right property please feel free to email me.

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