As mortgages become more difficult to obtain because of the credit crunch real estate companies and brokers are offering a variety of payment options to get end-users into the market so that buying, selling and renting can continue.
Emaar Properties, Dynasty Zarooni and Gowealthy.com, have all launched varied schemes to jump-start sales.
'We need to address the current short-term problem as most buyers do not have access to credit, mortgages or loans. We have also lowered our prices, both in rental and freehold properties,' said Kabir Mulchandani, chief executive of Dynasty Zarooni, which has launched a monthly payment scheme.
'The market is now adjusting itself while there is a liquidity crunch. The banks are tightening lending rules,' said Peter Penhall, chief executive of Gowealthy.com – an online property portal which has started a sales campaign for Axis Residences at the Dubai Silicon Oasis. It has released 657 units allowing buyers to make payments in 100 monthly instalments.
'A good price, a great payment plan that helps end-users buy properties without seeking finance, and a good product are the three key elements that will help us overcome the current slump,' Penhall added.
Emaar's Plan to Own and Rent to Own schemes are aimed at making it easier for customers to purchase property in Dubai. 'We aim to strengthen the property sector by facilitating easier purchases and making property more affordable for our customers,' Emaar CEO Issam Galdari said.
Mehdi Amjad, executive chairman of Omniyat, said his company was also considering new payment structures and expects to launch a new payment plan soon. 'We are considering different payment plans to encourage our customers. We have done that before when we created a payment plan where 50% was paid in construction and 50% on completion,' he said.
