Rent to own the needed real estate trend
A shift in market dynamics certainly calls for a shift in strategy.
Dubai has been a haven for real estate investors for years and the government and authorities are consistently putting favourable features in place to ensure it stays that way. One such example is the 10-year residence visa, which has enhanced the ease of doing business and is hence encouraging more people to invest Dubai for longer run.
But the concept that is taking the industry in a much-destined direction is the introduction of post handover payment plans. Post-handover payment plans have been very popular in Europe and the United States and were developed for first-time homebuyers to encourage them to invest in real estate with the money they would otherwise pay in rent.
According to official estimates reported by Statista in 2018, the number of people in the age group of 30 to 34 years in Dubai was about 572,000, accounting for the largest demographic group. According to Global media Insight, the median age in the UAE is 33.5 years. In short, there is a significant millennial population in the country, and while most of them are prospective buyers, many of them can only consider purchasing a home if flexibility of the payment schedule allows them to invest in the property market.
Some of the UAE developers, including the Arthur Mackenzy Properties Group (APMG), have responded to this very sentiment by devising and designing offers that match buyer convenience to attract them to own a property in the country. Now buyers have an option to avail an unmatched 15-year payment plan direct from the developer and without the need for any financial institution or approvals. One such offering is Casa Flores Villas developed by National Properties the property development arm of National Bonds Corporation. The offer entails a 10 to 15-year post- hand-over payment plan for premium Townhouse Villas located in the heart of Motor City in Dubai.
First-time homebuyers, who are not investors often turn to banks for financial assistance. The long-term payment plans offered by AMPG are a dependable and more economical alternative for the end users, which relieves them from qualification criteria and from incurring hefty interest rates charged by banks.
But as they say, the proof of every concept lies in its uptake and acceptance. From all projects with Arthur Mackenzy offering such payment flexibility almost all are on near sold out status, reaffirming the success of the concept.
The writer is CEO of Arthur Mackenzie Property Group. Views expressed are his own and do not reflect the newspaper's policy.