Efforts on to 'flip' Dh1m villas

Buyers have started to flip units in Emaar’s latest townhouse development, seeking premiums of 12 to 20 per cent regardless of there being a 18 month lock in period during which investors are prohibited from transferring the property.

An online portal has got several listings of the three-bedroom town houses in Mira development near Arabian Ranches. A brokerage firm, Distinct Real Estate, is asking anywhere between 12 and 20 per cent premium and has posted several adverts on dubizzle.com.

The payment plan is as follows: five per cent on booking with 20 per cent premium, following by the second installing of 10 per cent to be paid by July 31; third installment of 15 per cent by December 31; fourth installment of 10 per cent by April 30, 2014; 10 per cent on 20 per cent construction by August 31, 2014; 15 per cent on 40 per cent construction by December 31, 2014; 15 per cent on 60 per cent construction by May 31, 2015; 10 per cent on 80 per cent construction by October 31, 2015 and 10 per cent on completion and handover by March 31, 2016.

Global Property Solutions, a property brokerage firm, is also seeking 20 per cent premium on the original price of Dh1.77 million.

Asked on how the property transfer will happen, the property agent said: “The seller would either request Emaar to allow transfer on payment of 40 per cent or the seller giving a power of attorney to transfer property in name of the buyer on payment of 40 per cent.”

In January, Emirates 24|7 reported Emaar had barred investors from flipping apartments until they had paid a 40 per cent of the original price.

The 188 units released in Mira development were sold out on Saturday morning after investors queued up for two days outside Emaar’s sales office. The developer had adopted first-come, first-served basis to give more opportunity for investors in the UAE and internationally to be part of the sales.

In its latest report, Jones Lang LaSalle said the demand for new properties follows an increase during the first quarter in sales prices for villas rising 18 per cent year-on-year.

"The real estate investment market has been very active in the first quarter of 2013, with a growing number of residential transactions closing," the report said.

"While well-established residential communities in central Dubai are expected to see further price and rental growth over the rest of 2013, less completed projects in more remote areas will need more time before seeing increased demand and performance."

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