Dubai developers try to drive sales

Developers in Dubai are increasingly trying to drive sales with new payment plans for buyers.

Salaes values have declined in the emirate overall this year, with the second quarter seeing prices dip 2 per cent compared to the first quarter, which saw a similar decline.

Incentives are nothing new to the global property industry, but Dubai has been free of them in recent years, thanks to booming demand from investors. Now, though, developers are opening up their sights to targer more end-users in an attempt to bolster sales numbers.

"Flexible, back-weighted payment plans are allowing investors and end-users to secure properties with a minimal initial down payment and low instalments, with a large lumpsum paid upon or after completion," says CBRE's report, published by Zawya.

As a result, payment plans are "sometimes even outweighing price per square foot" as a factor in deciding whether a sale will proceed.