Dubai: Leading developers in Dubai have started allocating units for interested first-time home buyers at special rates – a move that will reduce the cost of entry for many new investors.
Dubai’s Wasl Group launched a new phase at its South Garden project in Jebel Ali, and ‘with a significant commitment to first-time home buyers’.
Dubai launches ‘own first home’ initiative to get residents turn property owners on ‘preferential’ terms
“Wasl is granting registered first-time buyers exclusive early access to the units, along with tailored incentives such as discounted pricing,” the government-owned developer said. (Prices start from Dh550,000 for studios to Dh1.95 million for a 3-bed, according to property agents, and the launch comes at a time when Jebel Ali is getting a lot of buyer interest.)
Meanwhile. Binghatti is offering 5% discounts for first-time buyers in Dubai across all its projects – ‘and ‘with no project or location restrictions’. Other leading developers are soon expected to make their own commitments as part of the Dubai ‘First-time Home Buyer’ initiative launched in July.
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Heading into the final fourth months of the year, these discount-backed options will have a significant impact in extending the Dubai property boom, industry sources say. “If there are proper discounts and easier financing options, there will be buyers for sure,” said a developer source. “It will ease the concerns of these first-time buyers who would otherwise have waited until property prices cool down.”
Boost for Golden Visas
Another category of property buyers – those wanting UAE’s Golden Visas – too are closely following the new Dubai home buying incentive. The 10-year visas are open for those who commit Dh2 million and over in a property purchase in the UAE, and has been a singular success for the last 3 years. But with the new Dubai initiative, a whole new crop of buyers could emerge.
Yes, they will still need to pay a minimum Dh2 million, but they still get discounts on, say, a Dh2.2 million home. And there are the waivers/discounts on various fees associated with a property buy.
“The new Dubai home owner incentive as a principle can help a younger demographic of residents,” said Matt Boyd, Business Development Manager at Sovereign Group.
“Or for those who otherwise might not be able to afford larger down payments. For instance,, those who would not easily have access to loans for properties worth Dh2 million.”
“A majority of residents always ask the question about their eligibility for a UAE Golden Visa. The bottom-line is that more residents want to stay longer and not have this to be dependent on job security.”
That’s exactly what the Golden Visa provides – assurance on longer term guarantee on their stays in the country.
Under the current system, as soon as the Oqood sales registration is done on a Dh2 million or over property, the investor can apply for the Golden Visa.
Dubai property prices go steady
There is a feeling in industry circles that Dubai property values have reached their peak in the current market cycle. There have been many offplan launches in recent weeks, and the offered rates do not show any major changes over and above what was there six months before. This is the case in locations fast gaining in investor appeal, such as Jebel Ali, Al Jaddaf, and Dubai Islands.
This too gives new investors better visibility on price performance and how they should split up their down payment and the rest of the installments. Price stability also helps when it comes to applying for mortgages for those who want to take that route.
Heavy demand for studios
Property market sources also talk about heavier than usual demand for studios and one-bedroom apartments. Again, this could be linked to more first-time investors getting into the local property market.
“It’s important to note that many investors may still focus on smaller units – driven by a desire to own property in Dubai rather than solely for Golden Visa eligibility,” said Yash Trivedi, founder of YOUAE Mortgages. “Overall, while the new Dubai first-home initiative will certainly influence demand for Golden Visas, the motivations of buyers may vary significantly.”
Not that property buyers will mind this one bit. As long as they sell a unit, whatever the price or format, that’s a win.
It will be a win too for Dubai’s First-time Home Buyer initiative.
Sources: Gulf News
