by humayunbaig 
Dubai property developers are exploring the possibility of implementing buyback scheme as part of their offplan launch offers. This innovative approach aims to attract potential sellers by offering the full buyback of sold units after a predetermined period. One such pioneer of this scheme is Dugasta, a developer that recently introduced it in their project, Al Haseen Residences, strategically located near Al Maktoum International Airport.
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Potential Impact of Buyback Schemes
As the Dubai property market evolves with new buying and selling factors, buyback scheme are expected to gain popularity. Until now, this concept has been relatively under-utilized, with most developers stepping back once the initial sale is completed. In some cases, they would manage the renting of the units on behalf of the owners.
However, a buyback guarantee from a developer signals a significant shift in strategy. This holds especially true when developers offer the buyback after five years, which enhances its attractiveness for potential buyers.
Price Appreciation and Profits
According to Tauseef Khan, Chairman of Dugasta Properties, this strategy presents a tremendous risk-free opportunity for buyers. They not only get a guaranteed 50% return within the first five years but also a guaranteed buyback option after the fifth year. This allows buyers to cash in on price appreciation, potentially leading to substantial profits from the resale of the property.
In the past three years, Dubai property values have seen significant gains, reaching 20-40% increases from their 2018-19 lows in some locations. Although the pace of growth may slow down, value gains are expected to continue.
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The Rise of Service Charge Waivers
As competition intensifies among Dubai developers in off plan, service charge waivers are emerging as a significant draw for buyers. More and more property launches are offering waivers for 3-5 years.
These waivers can lead to significant savings for buyers, depending on the location and property price. However, it’s crucial for potential buyers to research the service charges in the neighbourhood and the property values before entering into a deal.
Conclusion: The Future of Dubai’s Real Estate Market
Conclusively, buyback schemes and service charge waivers could play a key role in the evolving Dubai property market. These trends furnish buyers with a risk-free investment and equip developers with a game-changing strategy for Dubai’s real estate market.
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