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New property payment plans in Dubai shows signs of a maturing real estate market

Not only are developers introducing innovation into their payment plans but they are becoming more realistic about timescales and prices, it is claimed.

The move is also welcomed as a way of lessening the impact of the economic downturn.

Aristocrat Star Investments, a multi-diversified business group with a real estate investment portfolio in the Middle East, said its new payment plan for its Royal Estates development is designed to alleviate any financial concerns.

The extended plan being offered to existing customers gives 90 months to pay 85% of the value of the property once a threshold of 15 per cent of the purchase cost has been paid and is the first of its kind to be introduced by a private developer.

'Studies have shown us the demand for affordable real estate continues to exceed supply in Dubai. Demand is positively shifting towards an end-user market,' said Osman Valli, CEO at Aristocrat Star Investments.

Ajman developer R Holding is looking at relaxing investor instalments on its Emirates City development in light of the current financial crisis.

Experts say it is a sign of an increasingly mature market targeting end-users rather than the speculator-fuelled free-for-all that was seen early last year.

Emaar has already launched two new schemes and Omniyat Properties is revising its payment plans to make it easier for the buyer. Dynasty Zarooni has announced a monthly payment plan so that end-users can enter the market.

'Developers can't afford to be as stiff as they were before. The market is maturing and heading towards the end-user,' said Chris Dommett, chief executive of mortgage broker John Charcol.