Dubai Property Developers Look For Innovative Ways To Sell Developments.

With freehold residential property prices falling at an alarming rate, and with predictions from experts saying this is unlikely to change in 2009, no one is exactly rushing out to buy Dubai properties for the time being. With banks not really willing to offer much credit at the moment, deeming it too large a risk, even those wanting to buy properties are finding it hard going unless they can obtain the cash by other means. The only properties that seem to be moving at present are distressed sale properties, whose owners have not been able to make the necessary payments on the property, and are therefore forced into selling at a much reduced price. But where does all this leave developers? They still have properties to sell, but at the moment there is no real market. This makes shifting a large amount of property a real challenge for them, and there is only so much they can reduce the price of their properties. So instead many have been coming up with novel ideas in which to temp buyers into purchasing freehold residential real estate. Previously Dubai developers had been known to offer buyers of large properties a free 5 star holiday and flights to any destination in the world, and a number of developers are now using similar tactics in today’s market climate.

Developer Damac is a big fan of such schemes and was offering a free BMW 1 series or Bentley Continental Flying Spur with the purchase of a freehold duplex or penthouse apartment.  And they have not stopped there. In September they were offering super expensive mobile phones by Vertu free with apartment purchases along with either a 10% reduction on the property price or guaranteed 8% rental returns for the 1st 3 years!  One waterfront development is even going so far as to offer a half price yacht with any waterside property! A nice little extra is you already have planned to make such a purchase, but whether these types of incentives really makes anyone who otherwise would have not purchased a property, go out and do so remains unclear. What it does do is give a clear indication as to how bad things have got for Dubai real estate developers at the moment.
 

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