Tuesday, August 10, 2010

Developers offer attractive perks to lure investors

The developers have begun trying several marketing strategies to attract property buyers, such as offering "guaranteed rentals" to multiple unit buyers, and also offering free maintenance for their units.

The Dubai-based Vakson Real Estate, for instance, has offered eight percent guaranteed gross rent for two years to investors purchasing three or more apartments in its 'University View Apartments' at Dubai Silicon Oasis.

The units are all ready to be occupied, with majority already sold out. The units located in a good location are much in demand, a company official agreed.

The investors are given post-dated rent cheques on signing contracts. The developer is also offering financing options to investors.

In RAK, Al Hamra Real Estate is offering free furniture and one-year free maintenance to property buyers, apart from developer finance. For those opting to rent, the units are offered with three months' free rental apart from free electricity for three months.

Several developers were offering numerous such perks to attract buyers. But these offers withered away when the real estate sector was hit by the recession.

However, experts are of the opinion that property buyers are no-longer interested in sales gimmicks of companies, and are cautious in making decision. They are looking into quality, location and reputation of developer, rather than the free gifts offered.

The leading global real estate consultancy, CBRE (CB Richard Ellis) expects about 31,194 new properties to enter the Dubai market this year, and more than 10,000 in Abu Dhabi.

According to Reuters' poll, house prices in Abu Dhabi and Dubai are likely to fall by 10 percent and 13 percent in 2010, with increase in housing units in both markets.

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