Ramadan is a popular time for families in the UAE to buy a new home. Developers know this and offer attractive promotions to capture buyers during the holy month. Several Dubai developers are rolling out deals with big discounts, fee waivers, and payment plans to entice purchasers this year.
Promotions center on two main things – lower prices and reduced fees. Payment plans are also part of the package for some projects. Let’s have a closer look at different offers and discounts from developers.
Real Estate Developer Offers
Industry insiders reveal that companies like Danube Properties, Tiger Properties, DAMAC Properties , Sobha Realty, and Al Habtoor Group have come up with special Ramadan promotions to entice buyers. Here are some of them:
Danube Properties Offers Free Furnishing And 2% DLD Fee Waiver
According to real estate experts, Danube Properties has an attractive Ramadan offer where they are providing free full furnishing and waiving 2% of the Dubai Land Department (DLD) transfer fee for buyers. The furnishing package lets consumers move into their new home without any extra fees for furniture. And waiving 2% of the 4% DLD registration price reduces the client’s upfront prices, making the deal greater and less expensive.
Danube Properties is one of the main lower priced housing developers in Dubai focused on presenting fantastic houses to the center-earnings phase. The Ramadan promotions can boost sales of their projects like Danube Waves , Glamz, Lawnz, Bayz, Occenz, starz, and Resortz.
Tiger Properties Offers 15% Discounts on Payment Plans
Another promising offer comes from Tiger Properties. Tiger Properties is offering 15% off price on their Red Square tower placed in Dubai Investments Park.
The Discount price essentially reduces the amount of monthly installments a client desires to pay whilst opting for a publish-handover fee plan. This can enhance affordability and entice shoppers who were at the fence due to budget constraints. Tiger Properties presently has residential initiatives underneath development – Red Square and The Emrys – catering to young specialists and households searching out lower priced housing.
DAMAC Properties Rolls Out Price Discounts
According to industry insiders, DAMAC Properties has also announced price discounts on select units across its portfolio. DAMAC is one of Dubai’s largest developers known for luxury branded homes like Trump Estates, Just Cavalli , Paramount Hotels & Resorts, and AYKON City.
The Ramadan discounts at DAMAC can rangeom 5-15% reductions on the base selling price depending on the project and unit. For instance, analysts predict discounts on ready units at DAMAC Hills , DAMAC Heights , and Aykon City that buyers can move into immediately.
Sobha Realty Also Waives 2% DLD Fees
Sobha Realty , another established developer known for luxury projects, is offering a 2% waiver on DLD transfer fees similar to the Danube Properties promotion.
Sobha currently has two projects under development – Sobha Hartland , a luxury community located in Mohammed Bin Rashid Al Maktoum City, and Sobha Waves Villas Townhomes located in Meydan One. The DLD fee waiver can improve affordability and encourage buying activity for units in these projects during Ramadan.
Al Habtoor Group Follows Trend of DLD Fee Waiver
Al Habtoor Group is not far behind with a 2% DLD fee waiver offer for their upcoming high-rise Habtoor Palace project located in Dubai Marina . The developer is due to hand over units in the 75-storey tower soon, so the fee waiver can help clear ready inventory.
Dugasta Properties Joins The Race
Emerging developer Dugasta Properties has also jumped on the promotional bandwagon by offering a 4% waiver on DLD transfer fees for properties purchased during Ramadan.
The boutique developer is focused on providing mid-market and affordable housing options to middle-income tenants and end-users. Their current projects – Al Haseen Residences and Moonsa Residences – cater to budget-conscious buyers.
According to Dugasta’s Chairman Tauseef Khan, the 4% DLD fee waiver allows buyers to save significantly on transaction costs. Combined with their 10% guaranteed annual returns offer, it creates a strong value proposition for investors this Ramadan.
The DLD fee waiver brings the total savings for buyers at Dugasta projects to 14% during this season. This positions Dugasta as an attractive option for tenants and end-users seeking quality homes with cost advantages.
DLD Discounts Impact Buyer Decision Making
Speaking about the impact of such promotions, Farooq Syed, CEO of Springfield Properties, said: “Discounts on DLD fees directly reduce the buyers’ upfront costs, improving affordability. Depending on the property’s value, waiving 2% DLD fees can translate into savings of AED 5,000 to 20,000+ for buyers. This has a positive impact on buyer sentiment and decision making.”
In addition to discounts and fee waivers, some developers are also throwing in freebies like home furnishings, electronics packages, handing over units in a ready-to-move-in condition, and guaranteed rental returns for a certain period.
Robust Sales Activity Despite Ramadan Seasonality
Historically the holy month of Ramadan has seen a slowdown in real estate transactions and activity as working hours get reduced significantly. People also focus more on spiritual endeavors rather than material pursuits.
However, recent trends point to healthy sales activity during Ramadan propelled by such promotions. According to data from the Dubai Land Department (DLD), real estate transactions in the first week of Ramadan 2023 (March 23-29) amounted to AED 5.92 billion from 2,379 units sold.
This is a 12% increase compared to Ramadan 2022, where sales hit AED 5.3 billion from 2,012 units in the opening week. Real estate consultants attribute this spurt in activity to targeted promotions and discounts by leading developers. They aim to incentivize buyers who are sitting on the fence or want ready homes they can move into immediately after Ramadan.
The robust response has exceeded industry expectations as winter months and Ramadan are typically considered slow periods. It demonstrates that attractive offers can overcome seasonality trends. Also, easing of Covid restrictions has improved market sentiment.
Farooq Syed commented: “The impressive sales activity during Ramadan underscores strong investor appetite and confidence in Dubai’s real estate market. Buyers recognize that developers are offering lucrative discounts and incentives this season. They want to capitalize on the lower prices, easy payment plans, fee waivers, and freebies.”
Adaptability Of Dubai’s Real Estate Market
Industry consultants highlight that the market’s ability to transact despite shortened working hours and adjusted pace shows its adaptability. While business hours are reduced during Ramadan, activity flourishes in the evening after breaking fast.
Service providers like banks, utilities, and telecom companies also extend working hours into the evening. Many government departments are now providing select services at night. So real estate transactions can still be conducted efficiently.
Virtual viewing options, digital contracting, online payments, fast-tracked mortgage approvals, and remote working facilities also enable transactions. Buyers recognize that industry stakeholders are aligned to facilitate smooth deals during the holy month.
Dubai is globally renowned for its resilient and dynamic real estate ecosystem. The ability to modify operational modalities during Ramadan to enable transactions further cements this reputation. Rather than impeding deals, shortened work hours shift more of the activity to post-iftar hours.
Farooq Syed noted: “The operational tempo in Dubai’s real estate market remains robust during Ramadan. The deal’s momentum continues unabated through the evenings, demonstrating that it is marked not by decreased productivity but by adjusted working patterns. This highlights the market’s capacity to adapt seamlessly.”
Secondary Market Sellers Also Tweak Strategies
The Ramadan offers are not just limited to primary market transactions by developers. Sellers of secondary or resale properties are also running promotions in sync with the season. These include:
- Discounts on selling prices of ready units to boost viewings and sales
- Absorbing certain fees like agents’ commission to reduce costs for buyers
- Making properties available for viewing in evenings/weekends
- Fast-track sales by reducing negotiation timeframes
- Improving presentation of properties through minor upgrades
- Running social media campaigns to generate leads
The secondary market supplies a wide inventory of homes across locations, sizes, and price points. Sellers who align their strategies to market realities during Ramadan can successfully execute deals. Their pricing discounts and flexibility can match or even exceed developer offers in some cases.
Factors Supporting Market Activity In Ramadan
While the holy month ushers in a contemplative ambience, the buzzing momentum in Dubai’s real estate market has some underlying drivers:
Relaxed Covid Protocols: Easing of pandemic restrictions has revived economic dynamism and investor appetite across sectors including real estate. This is in contrast to the last two years when uncertainty and health risks clouded Ramadan market activity.
Expo Stimulus: The hugely successful Expo 2020 event significantly uplifted Dubai’s global image as a city of opportunities. The expo also boosted economic activity and employment generation, which have spilled over into 2024.
Increasing Population: Dubai’s population has been rising steadily driven by expat immigration for job opportunities. This is increasing housing demand across price points, supporting market stability.
Strong Fundamentals: Factors like advanced infrastructure, business-friendly policies, and political/financial stability continue augmenting the emirate’s investment appeal. These reinforce the foundations for sustained realty growth.
Attractive Payment Plans: Developers are offering extended post-handover payment plans for off-plan purchases without imposing excessive premiums. This appeals to budget-conscious end-users.
Competitive Pricing: Properties are competitively priced to offer better value Here is the continuation of the article:
Golden Visa Impact
Dubai’s long-term Golden Visa program has been a gamechanger for foreign property investors. Launched in 2019, these 10-year residency visas for professionals, entrepreneurs, graduates, and high-networth individuals have boosted expat immigration and home buying.
Senior consultants say that the uptake of Golden Visas during Ramadan has catalyzed real estate transactions. Visa holders have a long-term perspective on Dubai and they, or their families, need homes for the next 5-10 years.developers are eager to capitalize on this demand.
Many developers also offer attractive post-handover payment plans for Golden Visa holders without demanding excessive premiums. Emaar, for example, provides payment plans stretching up to 10 years for Golden Visa residents buying homes in Dubai Creek Harbour.
Planning For Real Estate Transactions In Ramadan
While healthy sales activity continues during Ramadan, industry experts advise adjusting processes to account for the seasonal tempo. Some tips for buyers and sellers are:
- Consult agents on market movements and available promotions during Ramadan to make informed decisions
- Legal procedures with the DLD take longer with shortened working hours, so buffer additional time
- Schedule viewings over weekends or after sunset when sellers/agents are available
- Seek pre-approvals for home financing before Ramadan to accelerate mortgage processing
- Digitize paperwork like power of attorney documents for smoother transactions
- Allow flexibility for renegotiations or delays due to reduced working hours
- Complete due diligence on secondary properties through online title deed checks
Overall, real estate professionals must display patience, professionalism, and planning during the holy month to deliver successful transactions. While deal momentum continues unabated, adaptable approaches align best with Ramadan market realities.
Positive Outlook Post-Ramadan
Real estate consultants are optimistic about sustained momentum in the Dubai property market post-Ramadan as well. Factors like the UAE’s stability and growth prospects, upcoming mega-projects, infrastructure upgrades, pro-business environment and demand-supply dynamics will keep attracting investors.
The targeted Ramadan promotions will likely stimulate buying sentiment. And the discounts/incentives offered by developers will probably continue influencing buyers sitting on the fence. If more end-users are enticed into transactions now, it bodes well for the broader spring/summer market.
Syed Farook summed up: “Overall, consultants foresee the real estate momentum gathering steam through the rest of 2024. Higher oil prices and rising investor trust signal an upbeat outlook. The promotions during Ramadan will likely catalyze demand across segments, setting the stage for a buoyant post-Ramadan market.”
Conclusion
In short, Ramadan is proving to be an active season for Dubai’s real estate market despite reduced working hours. Tactical discounts, payment plans, and fee waivers by leading developers are attracting buyers who recognize the value propositions. Supported by positive demand drivers, the momentum is primed to continue post-Ramadan as well.
