More Dubai developers are offering monthly schemes on off-plan purchases, with the installments set on terms budget-friendly for property buyers. For instance, if a client wants to buy a Dh475,000 studio at MAG City in Meydan he needs to put up 10 percent on booking and then pay off another 40 percent through installments set as low as 0.7 percent of the property value. This means the monthly payment will be Dh3,000.
They can continue this scheme until August 2021, and then the balance 50 percent should be paid in one go in November of that year, according to a MAG spokesperson.
Another developer, Nshama, has pegged a limited-period offer at Dh3,588 a month for a Dh428,888 apartment in Town Square.
Market sources say there have been some instances where the developer does not intend to ask for a down payment, instead they sign up the buyer to immediately start the monthly payments.
And it is not just private developers who are going all out with monthly easy payments. Emaar launched one at its project located in Dubai South, at 1.25 percent of the property value.
Developers finally realize that they need to offer incentives other than super-stretched post-handover payments. It seemed every other developer in the last 2 years had some difference or the other of a post-handover plan, with some going all the way up to more than 10 years.