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Attractive payment plans have become an increasingly significant driver in the off-plan property market in the UAE, offering investors the much-anticipated financial freedom they have been looking for.
Showcasing a compelling payment plan is currently the key selling point for many projects, and post-handover payment schemes are becoming more popular.
Competitive payment plans, not just on the price point, allow buyers to come back to the market with many opportunities that were not available before.
This is what investors have been demanding, as many banks are not offering financial plans on off-plan projects to the extent that they used to do in the heydays.
Most of those who are buying off-plan properties are looking for a payment option to ease the financial pressure of making large payments in short intervals, as well as making lump-sum payments on the completion of the project.
The trend of off-plan property buying continues its momentum after a hiatus of the global financial downturn.
Now, there are more options of off-plan plans and new locations for the buyers to choose from.
The investors are provided with the choice to decide on the location combined with an excellent payment plan that they can afford.
A payment plan, which is also interest-free, gives buyers the kind of opportunity that they have been waiting for.
A large proportion of buyers, who earlier felt that they could not afford to get into the off-plan market due to the changing mortgage scenarios, have started showing interest in investing in this niche segment again.
Payment plans combined with post-handover schemes greatly ease the financial pressures of investors.
Although some banks offer off-plan financing schemes to investors, it takes a long time to avail of the fund.
The positive thing that is obvious in the market is that all off-plan properties are now subject to Oqood, a legal protection system that covers off-plan projects in the emirate and which is paid upfront so that the property is legally registered.
The Dubai Land Department (DLD) implemented Oqood to safeguard the rights of the off-plan investors.
With the support of appropriate regulations in the sector, investors grab the best opportunities in the off-plan property segment.
Strong regulations and stringent monitoring by the authorities help the off-plan market reinstate the trust of the investors and keep the credibility in the real estate sector alive.
All developers have to register their off-plan projects online. This ensures safety for homebuyers’ investment, boosting further transparency and confidence in the realty sector.
However, if a buyer turns out to be unable to raise funds as per the contract, the options are well documented in the terms of the Real Estate Regulatory Authority (RERA).
The investor has the option to sell his property to a new buyer.
Again, it is always the investor’s responsibility to manage the funds for what he is buying and not try to speculate or make a quick profit, which may or may not happen, depending on what is being purchased. And there are no guarantees.
The only guarantee is that once an investor agrees to commit to the purchase of a property, it is his or her responsibility to uphold the contract terms signed with the developer.
And as long as the developer is upholding their terms, the buyer should, too.