Projects to reach the 50% construction mark before they start off plan Sales
The earlier requirement was for a project to be 20 percent ready before sales could be launched but yesterday in the Gulf News it was announced that projects will need to be 50% completed before off-plan sales can start on that project.
Zarah Evans, Managing Partner at Exclusive Links comments on this latest development is as follows:
"Of course this latest news will have some impact on the market but all it should do is slow it down which I don't see as a negative outcome long term as it will assist with the current issue of oversupply. Smaller private developers will certainly be put under more financial pressure and together with the recently introduced VAT on construction materials - cashflow will be tighter and down the line, these impacts will be reflected in the prices offers to consumers. It will offer more security all around, to consumers and lending banks as the exposure is being minimalized. It will, however, offer opportunity as 'off plan sales' will then move to become 'under construction sales' - more banks should feel more comfortable offering finance options to buyers, therefore, encourage sales. More secure sales".
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