Capital Guarantee, Money Back Schemes for Property in Dubai

After waving-off 4 percent registration fee and offering monthly payment schemes to attract buyers by some property developers, fresh schemes like "money-back" and "capital guarantee" have been rolled out.

Announcement by Damac Properties for guaranteed annual-return on advance payments during construction of three percent a year, which is equivalent to double interest on fixed deposits. The developer says twice a year customers will receive the payments until completion of the unit.

Alternate option is the "capital guarantee" ensures the property value for two years after delivery. It means, if the unit price has any drop form the time of delivery till the end of 2019 the developer will pay the difference to the investor.

Company’s Senior Vice-President Niall McLoughlin said that they have always maintained Dubai’s growth and confidence in the medium and long term. The company’s recently launched products that will provide the opportunity for those looking for high return on safe investment.

In February 2016, as per Emirates 24/7 reports, Emaar Properties the largest developer in Dubai is waiving off the 4 percent registration fee in Arabian Ranches for Casa villas. Customers will be given 12 months to make the full payment along-with property agents no transfer charges (4 percent) and Oqood land registration charge (4 percent).

KPMG, a consulting and audit firm said that property prices will be under pressure this year in Dubai due to strong US dollar and lower oil prices but the market will start recovery in 2017 as infrastructure work gets under way at the surrounding of Dubai Expo 2020.

In January 2016, UAE will remain an attractive real-estate market and for some buyers and especially owner-occupiers and those investors who are taking a long-term perspective may see value at current levels.

Overall, we remain confident that while rentals and prices will further soften in the short term, they are likely to get an increase again, perhaps as soon as 2017, as the UAE continues on its’ path to becoming a more mature real estate market.

Moody's Investor Service points out in 2015 that infrastructure spends by the government in the lead-in to Expo 2020 will help to sustain the property market. Hussain Nasser Lootah, Director-General of Dubai Municipality, said that population is expected to increase to 5 million by 2030, which will ignite demand for houses.

Further to above comments, we may expect that Expo 2020 will be a great event helping to sustain Dubai real-estate market and will increase demand for houses in near future.

About the Author:-

The article is written by Reenna Arora, associated with Own A Space, one of the leading property portal of Dubai. We cover all kind of properties across Dubai and other Emirates. It is your Own Space catering to various real-estates related needs and it’s here the buyer and seller meet online with detailed information on property requirements of the client.

The article is written by Reenna Arora, associated with Own A Space, one of the leading property portal of Dubai. We cover all kind of properties across Dubai and other Emirates.