To attract buyers, developers in Dubai use a term they haven't used for a long time: discount. After the US Federal Reserve rate hike, mortgage rates in the UAE increased by another 0.75 percent. Some developers are trying to assuage end users' concerns about their mortgage costs by offering direct discounts. These «discounts» mainly occur in the segment of real estate with an average income of 700,000 to 1.2 million dirhams, because developers do not want to lose buyers.
Developers are already waiving commissions for new buyers for various services, and if banks provide their own benefits, such as processing and evaluation fees, this will really lead to significant savings for the new buyer.
When it comes to fixed-rate terms on new loans, they should remember that they have to ask the bank for more. A typical fixed rate period is three years, but given the expected price increase, banks should be able to extend this period.
