Some Developers are Offering up to 20% Off-Plan Price Discounts
Off-plan sales continue to dominate Dubai real estate transactions. But developers are bringing in more aggressive tactics to woo potential buyers to their launches.
Private developers in Dubai are starting to offer some of the steepest discounts on off-plan property sales. These straight discounts on property prices apply both to new launches as well as those from the recent past, as developers compete for buyers before demand for homes in Dubai starts to stabilize.
In recent days, one of the big names among private developers in the city were marketing their launches with a flat 20 per cent price drop. This applied to those who were buying individual units and those looking for bulk buys. Such a straight discount is relatively rare, more so at a time when offplan sales in Dubai are still going strong, with month-on-month advances. Even in the peak summer weeks, demand for off-plan remained consistent.
Other developers too have their own price slashes, typically up to 10 per cent. In doing so, they are trying to reassure buyers that they would be getting in at the ‘right’ price and not delay the transaction. Off-plan property values are up by 15-25 per cent since 2020 in Dubai.
These discounts have been met with resounding success as can be seen by the sales transactions. However, these discounts are still limited to certain private sector developers in Dubai. It has mostly been to attract investors to newer projects and communities. Depending on the project, location and the developer, we would strongly advise investors to take advantage of such offerings.
It is a few developers who have these discount offers going currently. But if the market starts to stabilize and level-out after 4 record years of growth, other developers may join in. The biggest volume of sales transactions are on properties valued in the Dh1 million to Dh3 million range.
Developers in the past have relied on multiple ways to boost sales, whether paying the property registration fees to RERA on behalf of the buyer, or paying the DLD land tax, or keeping the services charges fixed for the first 3-5 years after handover. Which is why the straight discount is still relatively new.
Aggressive discounts are a way to clear inventory. With new off-plan launches at a record, investors would do well to look at parts of the Dubai property market where the gap between off-plan and ready sales value is at its highest.
Some industry analysts say that discounts are coming after property prices in Dubai experienced that 15-35 per cent gains. Even in emerging locations, off-plan launch prices are higher by double-digits over what would have commanded in 2021 or 2022.
Whatever be the case, it’s a time for new buyers to pick up a bargain.
In certain areas like JVC, Arjan or Dubai South, there is increasing interest from investors to buy private sector built properties. Newer developers are entering the market all the time and some need to offer incentives in addition to what they offer in the actual property.
It’s always good for the investor if there is some price competition so that it creates a win-win situation.
Source: Gulf News
