Paper: Hard line approach by UAE real estate developers damages industry
The hard line approach adopted by UAE's real estate developers to buyers failing to keep up payment instalments is upsetting buyers but also the entire real estate industry, Khaleej Times reported.
"The problem is magnified for those investors who have bought properties from the large developers including Emaar and Nakheel," the newspaper added.
The industry practice is for the buyer to make a 10 per cent down payment, based on the value of the property, with monthly instalments to be paid thereafter. If buyers fail to pay these instalments, they are hit with a penalty fee on any outstanding amount.
Nakheel, for example, has postponed the completion date for its Discovery Gardens project for one year, causing financial problems for many smaller investors, real estate agents confirmed.