Monday, December 08, 2008

Property developers offering hot deals to customers

In a bid to keep the real estate industry going, the real estate brokers and developers are said to have begun offering several good payment options, so as to convince end-users into the market.

According to the Chief Executive of Dynasty Zarooni, Kabir Mulchandani, the current short-term problem needs to be tackled, as several buyers do not have access to mortgage or loans. Hence, the company has launched a monthly payment scheme, so that customers could enter the market in a bigger way. The company has also lowered their prices of both freehold and rental properties. Several of their properties have been placed into the rental market from the freehold sales.

"The flexi-payment scheme will help release the stocks, which will get utilized by end-users in the market, as there is a high demand for new supplies in the market," Mulchandani said.

Peter Penhall, the Chief Executive of Gowealthy.com, an online property portal, said that the market is now correcting itself and there is a liquidity crunch, while the banks are also tightening lending measures. The company has launched a sales campaign for Axis Residences at Dubai Silicon Oasis by GGICO. About 657 units were released and the buyers were allowed to make payments in 100 monthly installments, with three percent down-payment while registering for the property.

Emaar Properties, last month, launched the 'To Own' schemes which were meant to make property purchases much easier for customers. The programmes, titled "Plan to Own" and "Rent to Own" were aimed to strengthen the property sector by enabling easier purchases and making property purchase more affordable for customers.

The Executive Chairman of Omniyat Properties, Mehdi Amjad, also agreed that with mortgages getting harder to obtain these days, his company is also considering new payment plans to motivate customers. Earlier, Omniyat had launched a 50-50 payment plan, wherein 50 percent payment was paid during construction and the rest 50 percent was paid upon completion of the project. The company agrees that a similar payment program would soon be launched.

According to officials, smart marketing techniques, attractive payment schemes, a good price, and a good product, could all help developers to ride out of the current real estate slump.

2 comments:

Anonymous said...

To ride out of the current real estate slump, to regain buyers' confidence is essential.Buyers' confidence is badly affected by malpractices of the agents and some of the developers. Unless and untill these practices are not corrected the off-plan market cannot recover. Some such practices are enlisted here: One of the most responsible factors for the present property market condition is the deceitful practices of the brokers or property agents. A few are mentioned here:
1. Alluring and misleading advertisements, never mentioning the risk factors, always: ‘book your dream home in only10% or just in only Dhs:10,000 ....., but never ever disclosing the fact that this booking is irrevocable and valid for 30 days , in some cases even for a week only. ( I have proof of it)
2. Forfeiting full 10% given at the time of booking, which often is in tune of 100 thousand for cancelling a unit of off-plan property which exists only on paper, months away from seeing the light of the day because the booking was irrevocable.
3. Purchase Agreements are always made available to be signed months after booking leaving no room to retrieve for the buyer.
4. Language of the contract is always tilting towards developer, specifying forfeits for any omission or delay at the side of buyer, giving developer all concessions of ‘Force Majuere’ and almost none to buyer.
5. Often, developers through the brokers create situation not to give enough time to read the contract properly. I know a developer who in writing threatened the buyers that 5% of total amount would be deducted if the contract fails to reach him back after being signed by the buyer with in 14 days; while it was couriered to buyers only 3 days before completion of 14 days time period. (I have proof of this)
6. Often brokers make false promises to lure, and then forget completely their full-mouthed promises punctuated with two three 'swearing by God' per sentence to re-sell it in a jiffy within six month with at least 50% profit on only 2% commission, supporting their claim by newspaper cutting for the same property six months ago.
7. In this way, these were not the so called speculators but these brokers who raised the market prices to unrealistic heights from where the fall was imminent, but under this fall, the investors, particularly the new and first timers are crushed badly. And now they have naturally taken the roll of doomsayers particularly for Ajman and Dubai property markets. And it will remain so until and unless their wounds are healed by effectively checking these malpractices and propagating the concerned laws.
8. Now there are brokers and developers who are using the new law to fleece the gullible small buyer by misinterpreting it, telling some thing like this: ‘till now you have paid only 30% of the total price, and by law you can get back only what is above this 30% if you default or discontinue the instalments. (Often this 30% even for a one bed-room flat is more than 300 thousand.)

Truly yours,
M Khan
0505628068

Anonymous said...

I am a small buyer who decided to invest in the Dubai realestate market.

While reading the comments of Mr. Khan, I felt that he was actually presenting my situation. It is true that there is nothing for me to do against the present situation Vs the contracter and the Agent, but I assure you that more than a hundred of my familly and friends already knew my story, and they are transfering the story to other people as well. In no time my and others stories will have the snowball effect, and that can only damage the reputation of Dubai real estate market.

I hope that the government will have laws that can protect small investors like me and many more as well.

Regards