Dubai developers rush in with Dh1m and under homes to convince tenants to turn homeowners

Dubai developers rush in with Dh1m and under homes to convince tenants to turn homeowners

Dubai: Dubai property market is seeing a wave of offplan properties with Dh1 million or under price tags as developers try to convince more residents to turn themselves into end-user buyers.

This heavy push also coincides with the recent updating of the Dubai RERA Rental Index, which allows landlords to raise rentals up to 20 per cent when the next lease renewal comes up.

Recent sales releases at Motor City (starting Dh990,000), Nshama’s Town Square (from Dh770,000), in Jumeirah Village Circle and elsewhere will give prospective resident-buyers options to get into the Dubai housing market on their own rather than remain as tenants. Market sources say there is still a vast pool of such end-user buyers who are waiting for mortgage rates to come off their highs (at 4.5 per cent and up) or waiting for a property to come to market with an affordable price tag.

Tipping point to turn from tenant to buyer

They add that developers had been focusing on the ‘Golden Visa’ purchases, of Dh2 million and upwards as the best way to get demand for their projects. But now, they see possibilities to turn tenants into homeowners with price tags of Dh1 million to Dh1.5