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Off-plan launches in Dubai over the last 12 months have been sold on a first-come, first-serve basis.
This has meant that these transactions have been dominated by investors rather than the genuine end-user, who now find that sourcing mortgage financing has become a time-consuming process.
But, now, some developers are trying to swim against the tide. RSG International has formally launched its first project in Dubai, at IMPZ, with the stated aim of claiming end-user buyers for the units.
''One-and-a-half years ago when we decided on the location, the prime advantage was its closeness to Dubai World Central, at a seven-minute drive, and we had planned on a price of Dh900-Dh1,000 a square foot,'' said Raj Sahni, CEO. ''But then the Expo 2020 momentum built up and it's reflected in our launch price — Dh1,215 psf.
But our target clientele is the end-user and only 15-20 per cent of the units were acquired prior to the launch. That's the reason why we have a clause that allows buyers a time frame of two years post the handover to pay the final 40 per cent to us at zero interest.
''Dubai has no shortage of potential end-users — search for vacancy at Dubai Marina or JLT and you will soon realize there's none. And more mid- and upper middle-class professionals are taking up residency in Dubai. There's a need for new supply aimed at this category.''
According to Chandrakant Whabi of Acrohouse Properties, ''As for concern about not having enough buyers, this has never been a problem for Dubai and will not be the case going forward too. Dubai's population has been growing by 0.1 million annually over the last two years and this pace will continue, if not accelerate.''
In other words, there will be no shortage of end-users. Developers just need to be patient and exercise a modicum of caution in going for the hype rather than actual needs.
Source: Manoj Nair, Associate Editor, gulfnews.com