UAE rains: Leading Dubai developers consider 1-3 month deferment of payments from property owners

UAE rains: Leading Dubai developers consider 1-3 month deferment of payments from property owners

Rains last week wreaked major damages at construction sites. Developers and contractors are still taking stock of what the repairs would entail, and passing these claims on to their insurers.

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Dubai: Leading developers in Dubai are considering proposals to defer some of the immediate payments due from their offplan property buyers as a result of the devastating rains that swept the country last week. If these plans are approved, property owners could benefit from not having to make any instalments in the next 1-3 months.

These internal discussions at developers have gained fresh urgency after the UAE Central Bank directed local banks and insurers to stay payment instalments due from their consumers for up to 6 months.

“We are aware that some of our customers have more immediate needs of their funds, and that could cause problems in meeting their payments to us,” said a top official at a leading developer with multiple projects in development. On many of these projects, their sales are based on a ‘1 per cent’ monthly payment from buyers.

“We are talking to our property buyers and will soon come up with a solution that benefits us all.”

Developers also have immediate concerns of