Payment plan 'key for real estate project success'

Matured real estate market requires matured thinking from property developers. Gone are the days when buyers used to take whatever used to be imposed by developers, when the market was a sellers’ one, according to property experts. With Dubai’s real estate market maturing further, developers are offering deferred payment plans to attract property buyers as it has turned into a buyer’s market, they stated. For instance, Gemini Property Developers, a boutique real estate developer, recently launched a game-changing-industry-first customised payment plan for luxury residential units in the Dh280 million ($76.2 million) Splendor at MBR City that offers a wider choice for property buyers allowing them to pay for five years after hand-over. This offer received an overwhelming response from the property buyers at the recent Cityscape Global exhibition in Dubai, said the experts. Splendor at MBR City, the G+8-storey luxury residential building is being built at Sobha Hartland within the Mohammed Bin Rashid City, Dubai, and scheduled for completion in January 2018. It offers a stylish, synchronised and elegantly-designed collection of 134 modern homes for the upwardly mobile families, who prefer to live at the heart of the city – yet within a sanctuary. "The key is to offer the freedom to choose how and when they want to pay as it has now become a buyer’s market. Dubai’s real estate market needs out-of-the-box thinking by all stakeholders," remarked Sudhakar R. Rao, the managing director of Gemini Property Developers. "That’s why we have devised a game-changing industry-first payment scheme that is designed to offer the best comfort level to our property buyers. This has received a strong response that is also resulting in transactions," he added. Under the scheme, the buyer moves in to Splendor at MBR City upon paying 50 per cent, thus freeing up the rents – that could be converted into monthly instalments for five years – or as low as 0.83 per cent per month that could be paid in quarterly instalments – and property buyers can enjoy the benefits of living in their own freehold homes within the MBR City and its central location within the city of Dubai. This plan actually removes the burden of payment under stress and allows them to pay as per their convenience and thus eases the pressure on the property buyer. Prabhakar R. Rao, the joint managing director, said: "Usually, the customer has to comply with the payment plan designed by the developer and has to align his/her finances as per the developer’s plan." "Also, while some developers are offering post-handover payment plan which is a popular thing, whereas some customer may not want to go for it since he/she can avail bank mortgage. Gemini for the first time is offering the customer, the freedom to customise his/her payment plan according his/her financial situation," he added. CEO Sailesh Jatania said the new payment scheme comes just in time as Dubai’s real estate market is witnessing signs of upturn. "Under this, customers can pick from customised payment plan for apartments as per their convenience from a host of options made available by Gemini. Firstly, customers can choose whether they want a post-handover payment plan or not because we don’t want to push the post-handover plan if the customer does not want the same or he/she has mortgage loan available," noted Jatania. “Secondly, he/she can choose how much percentage is desired to be paid post-handover (40 or 50 per cent) and in how many years he/she wants to pay this (2, 3 or 5 years),”