Dubai’s Off-Plan Property Market New Financing Opportunities
Investing in the real estate has always been popular in Dubai and the latest changes in the area of financing made it even more appealing. Currently, some of the UAE banks allow up to 60% financing of off-plan properties, more help that can help the prospects and buyers.
Conventional off-plan projects in the past and, in certain cases, to date entailed large down payments to developers. However, the banks have begun this practice and are increasing their lines of funding to ease the funding for the investors and be able to enter the house market.
Potential buyers can now better leverage themselves with up to 60% financing package which they can get. It is especially helpful for those who wish to invest in high growth zones for example Dubai without necessarily restricted considerable amount of capital to the sheer undertaking.
Market Growth and Trends
It has to be noted that the off-plan property segment in Dubai boasts a 60% increase in the market in July 2024. This is an indication of increased interest among investors as compared to 49% that was in July 2023. This was also affirmed as the city received 9 million visitors in the first half of the year 2024 proving the city as a most attractive investment destination.
Other expert from different fields posit that this growth is as a result of financial products that are offered by the banks making it more possible for investors to buy off-plan properties. The choice of the flexible payment and the guarantee of bank financing are among the compelling forces in this regard.
Key Players and Areas
Most of the sales value giants include Emaar, Sobha Group, Danube Properties, Meraas and Ellington Properties among others. Off-plan investment segments are favorites and they include, Dubai Hills Estate, Jumeirah Village Circle, business bay for apartment, Dubai South, The Valley, and Nad Al Sheba for villa and townhouse.
Lenders suggest that for first-time buyers, developers must be properly vetted so as to avoid a situation where the developer ends up being a fly-by-night operator. One should also bear in mind the property’s location and facilities since they greatly determine its re-sale value and general returns on investments.
It has also led to the introduction if up to 60% financing for off-plan properties by UAE banks. On the one hand, it assists and facilitates the new investors to enter the market but on the other hand, it also provides the sustainable growth of the Dubai property markets.
| Participant | Contact Details |
|---|---|
| Emaar Properties | Email: info@emaar.ae Phone: +971 4 567 8888 Address: Downtown Dubai, Dubai, UAE |
| Sobha Group | Email: info@sobha.com Phone: +971 4 423 8800 Address: Sobha Hartland, Mohammed Bin Rashid Al Maktoum City, Dubai, UAE |
| Danube Properties | Email: info@danubeproperties.ae Phone: +971 4 409 0777 Address: Danube Building, Al Barsha, Dubai, UAE |
| Meraas | Email: info@meraas.ae Phone: +971 4 317 3999 Address: City Walk, Dubai, UAE |
| Ellington Properties | Email: info@ellingtonproperties.ae Phone: +971 4 278 0888 Address: Business Bay, Dubai, UAE |
Quiz: Dubai’s Off-Plan Property Market
Quiz created with information from 95dubai.com