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Dubai: While last two months of 2014 saw an unexpected pickup in secondary market deals, it was more or less flat in the off-plan space.
“The off-plan market has been very slow and there were even fewer transactions in the secondary market related to off-plan properties,” said Chandrakant Whabi of Acrohouse Properties. “Reasons for the drop in transaction volumes in offpan market had to do with the drop in premiums, with a majority of the launches in 2014 transacting at 0 — or close to — per cent premium over the launch value.
“A second reason had to be the high transaction fees, which adds up to 10 per cent of the property value (4 per cent for “Qqood” fees, 4 per cent for transfer fees and 2 per cent for professional fees). And, to some extent, there was the steep mandatory payments required by some of the large developers before allowing transfers of such properties.”
Source: Manoj Nair, Associate Editor, gulfnews.com