Developer reduces property prices
Mada’in Properties announced on Wednesday it is giving existing buyers up to 30 percent discounts on their properties.
March 4, 2009 2:55 by Dana El Baltaji
Mada’in Properties, a Dubai-based company, said on Wednesday it is reducing its unit prices to mirror the emirate’s property market prices, reports AME Info. Existing investors will be given revised contracts and payment schedules to help buyers meet their obligations.
‘We have studied the market conditions and have formulated a strategy that deals with the past, the present and the future. Bearing this in mind, we have made the decision to assist our customers in their investments, not only in good times, but also in the current market conditions. The construction costs have been reduced significantly allowing us to pass on the savings to our current customers,’ Abdul Aziz Al Awar, CEO of Mada’in Properties said.
The news will come as a relief to investors who feared they had overpaid for their properties. Dubai’s property prices peaked in August 2008; according to some estimates, property prices have fallen by up to 25 percent since Dubai’s real estate crash in September 2008.
The announcement comes a day after senior real estate executives meeting at the Abu Dhabi Economic Forum said the UAE real estate sector will experience adjustments, but ultimately the sector will mature and thrive.
They also said that the lack of financing in the short term will continue to weaken the property sector.