Facing tough market conditions, Dubai real estate developers are now offering significant discounts on unsold inventory. Real estate investors who are willing to pay cash can now acquire newly constructed units at price levels not seen since 2005 and 2006. See the following article from Property Wire for more on this.
Developers in Dubai are selling apartments that they can’t sell at a discount with some prices back to levels last seen in 2005 and 2006.
To some it might seem like a desperate measure but the developers just claim that they simply want to offer buyers and investors a good deal.
Existing investors and those paying cash are being offered the best prices.
Private developers who have been withholding their units from the market are now selling them at 2006 price level, making them more affordable for end-users.
An example is the MAG 218 project at Dubai Marina.
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At the height of the property boom apartments were selling for DH1,600 per square foot.
Now they are priced at Dh800 per square foot and the project is due to be handed over in March 2010.
Roger Wakeham of the CHI Development Group confirmed that villas on its Lime Tree Valley golf development which cost Dh2,500 per square foot in 2008, are now selling at Dh1,500 per square foot.
Ahmad Abuljobain of Tiger Properties-Dubai, said it has lowered prices to 2006 levels.
‘In terms of prices we are taking into consideration how we can benefit our customers. For example, if a customer is paying cash we will offer a discount.
The percentage of the discount will vary depending on the project,’ he explained.
‘We, the developers, are weighing up the impact of pricing and payment terms for our customers in light of the market conditions.
Prices generally have fallen 30 to 50% and we have lowered our prices to 2006 to 2007 levels,’ he added.
Abid Junaid, executive director of ETA Star Properties, said new launches in 2010 will be selling at 2007 price levels.
‘We have not launched anything in 2009. Our focus this year and next year is on consolidating our existing projects. Currently we are delivering three projects, Liberty House, Gold Crest and Gold Crest Views and we have about five to 10% of the units in every building left to sell. We will be selling those at 2007 price levels,’ he said.
This article has been republished from Property Wire. You can also view this article at Property Wire, an international real estate news site.
