Tuesday, January 22, 2013

Short-term finance options opened to property buyers

The private companies who own complete floors in completed buildings, have joined hands with developers, in offering easy finance options to property buyers in Dubai, showing signs of steady recovery.

A Dubai-based real estate marketing company, Modelux Properties is offering three-year payment plan for Axis Residences 2 in Dubai Silicon Oasis. The buyers will have to submit a down payment of 10 percent, with first payment on 1st February, and then 15 percent on handover. The rest 65 percent can be paid in three years.

Another finance offer from Deyaar Development is for the Oakwood Residency apartments which are already completed in the International Media Production Zone, and the offer is for as low as Dh.390,000. In this case, the buyer has to make a down-payment of 20 percent, while the rest 80 percent can be paid in easy installments within three years. The tower houses 344 single and double bedroom units, with a range of amenities including gymnasium, sauna and steam rooms for men and women, rooftop swimming pool and ample parking space.

Deyaar has announced a scheme during Cityscape 2012, whereby the buyer had to make a down-payment of 25 percent, while the rest 75 percent could be paid in installments within 15 months, for the Clayton Residency project in Business Bay.

Meanwhile, the Dubai-based master developer, Nakheel, was also offering end-user financing for units in Masakin Al Furjan, Al Furjan, Badrah, International City and Jumeirah Village. The buyers had to make 20 percent down payment, following which, they could move into their apartments and pay the rest 80 percent within a three year period.

The finance options by developers seem attractive to end-users, as just before the start of 2013, the UAE Central Bank capped mortgage credit for expats at 50 percent for the first property and 40 percent for purchase of second property and other units.

The Founder, Value Homes Real Estate Brokers, Rakesh Bohra, said that several private investors who own units in residential and office towers in Business Bay, are now offloading their inventory through easy payment options.

In fact, a private investor in a commercial tower in Business Bay is said to be offering 10 percent payment in four installments, following which, the keys are handed over to investors, and they are allowed to lease the space. The rest 60 percent can be paid in two years time, he said.

However, mortgage consultants are not coming out with long-term finance options, as for developers, that would mean changing their business pattern altogether, said Sam Wani, General Manager, Independent Finance.

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