Guaranteed rentals, freebies for property buyers

In a bid to attract property buyers, developers have started to offer “guaranteed” rentals to multiple unit buyers and even free maintenance for their properties, Emirates 24|7 can reveal.

Dubai-based Vakson Real Estate is offering investors eight per cent guaranteed gross rent for two years if they buy three or more apartments in its University View Apartments in Dubai Silicon Oasis.

“The units are ready for occupancy and not many are left to sell. There is demand for units in good location in Dubai,” a company official said.

Post-dated rent cheques are handed over to investors after their contract is signed. The developer even offers options of financing, which is from “own” finance of two years to bank finance for long-term period.

While in Ras Al Khaimah, Al Hamra Real Estate is offering free furniture to one-year free maintenance to property buyers along with developer finance.

For those opting to rent, units are being offered with three months’ free rental with free electricity for three months.

During the property boom, a number of developers, especially in Dubai, were offering a number of freebies to entice buyers, ranging from islands in the Caribbean to private jets and luxury sedans to vacation trips. However, these offers faded away as the property sector was hit by the slowdown.

Experts believe that property buyers are no longer interested in the sales gimmicks of companies, but are very cautious when making a decision. It is the quality, location and reputation of the developer that concerns them than freebies.

CB Richard Ellis, the global real estate consultancy, expects 31,194 news properties to come onto the market this year in Dubai and in excess of 10,000 in Abu Dhabi.

A Reuters poll has also predicted house prices in Dubai and Abu Dhabi are set to fall a further 10 per cent and 13 per cent in 2010 respectively as residential supply increases in both markets.