War jitters hit Dubai: Homes come with free rides as prices tank

Dubai (The Uttam Hindu): The direct impact of the Iran war and geopolitical tensions is now clearly visible on the glittering skyscrapers of the dream city of Dubai. The real estate market of the Gulf country, which was growing at a rocket speed for the past few years, is now going through a terrible slowdown. There is a lot of turmoil in the property market these days. The situation has deteriorated to such an extent that to attract buyers, builders are giving away expensive luxury cars along with huge discounts absolutely free.

A massive 40% drop in the entry-level market

Dubai's entry-level property market has seen a massive 40% decline over the past year. This slowdown has hit demand for homes priced between 1 million and 2.5 million dirhams (AED). In this segment, people are negotiating directly at the table for 10 to 15 percent. The situation in the secondary market is similar, with buyers insistent on demanding significant discounts before investing. While the March property registration numbers may appear promising, market brokers clearly state that this is merely a result of stalled transactions between December and February. In reality, March sales declined by up to 50%. Since the market is typically quiet during Ramadan, all eyes are now on April sales. If the post-war situation normalizes, a market recovery is expected.

Luxury cars being distributed with flats to attract buyers

To combat this alarming market slowdown, major developers have opted for attractive offers instead of outright price cuts. Renowned real estate company DAMAC has changed its payment plan from 70/30 to 50/50. Furthermore, it is covering the 4% registration fee of the Dubai Land Department (DLD). To attract customers, DAMAC is offering free luxury cars like the Nissan Pathfinder for properties above 1.5 million dirhams, and the Nissan Patrol Nismo for properties above 5 million dirhams. Major builders like Binghatti and Danube have also offered significant relief to buyers with their payment plans. Substantial discounts of up to 20% are being offered to those paying the full amount in cash. Azizi has even changed its payment plan to 30/70, significantly reducing the pressure on buyers to pay a large lump sum upfront.