Dubai property agents are now reporting sales in the off-plan property market giving encouraging signs of a property recovery within the UAE. The most past sales of off-plan properties were fuelled by the process of flipping properties by investors looking to gain significant price advantage within a few months.
Now investors are returning but are looking for near completion aldar properties for sale where quality and an anticipated handover is evident. Many investors see this as a great opportunity to snap up bargains as final payments become due from cash strapped investors who are forced to sell their properties distressed.
The pressure is received from property developers and of course a double whammy with maintenance charges to be paid forward for the forthcoming year, with some payment schemes offering 30 /70 payment schedules where 70% is paid on completion. Obviously these are where the super bargains can be found, albeit these schemes were rare with a more sedate payment structure linked to the build schedules is usually 10 or 15 % increments.
Previously more remote areas were drawn by the would-be investors often drawn by lower prices rather than very expensive marina areas. With the bank's reluctance to support off-plan properties, some developers are offering post-payment plans.
In the past developers found this unnecessary but in order to offer incentives, post-payment plans are being offered which is effectively a developer mortgage. This normally minimizes the need for extensive credit checks and the red tape involved with this.