Dubai: Emaar Properties founder Mohamed Alabbar confirmed that the company does not offer discounts on the prices of its real estate units, nor does it modify payment plans, even in the event of a slowdown in sales, stressing that this policy aims to protect the rights of previous buyers and maintain their confidence in the company’s projects.
Alabbar said during a dialogue session at the RISE Summit in Dubai on Wednesday that it is unfair to sell a residential unit at a fixed price and then offer a similar unit in the same building at a discount of up to 50% to a new buyer, as this may cause harm to investors who bought their units at the original prices.
He explained that some real estate developers in Dubai resort to offering large discounts in order to provide the necessary liquidity to meet their financial obligations, especially companies facing high levels of indebtedness, stressing that these practices do not necessarily reflect a general trend in the real estate market.
Price correction clarification
In response to a question about the Dubai real estate market entering a price correction phase, Alabbar explained that price movements vary from one project to another, depending on the location, the real estate developer, their financial strength, and their debt levels.
He pointed out that some companies are forced to lower prices to secure the cash flows necessary to continue their operations, while other companies have the financial solvency to maintain their selling prices without making concessions.
Regarding forecasts indicating that Dubai property prices could fall by between 5% and 15% until 2027, Alabbar avoided making a specific prediction, stressing the importance of assessing the market according to broader criteria than short-term price fluctuations.
Alabbar pointed out that property prices in Dubai remain competitive compared to global markets, including London, Singapore, Chicago and Mumbai, which enhances the emirate’s attractiveness for real estate investment.
Source: Emirates 24|7