Dubai developer warns against off-plan freebies

Big names in Dubai real estate are coming out to warn against the practice of aggressive off-plan incentives being offered by smaller private developers. The latest to issue such a warning is P.N.C. Menon, founder and chairman of Sobha Realty. "Aggressive incentives being offered by smaller private developers are not sustainable. It shows frustration and fear on the developer's part. If you have a good product, people will buy since it is a big ticket investment. They want value for money. I call such tactics unfortunate fear on the developer's part," he told media on the sidelines of the launch of Sobha Realty's Brand Studio in Dubai on Wednesday. Menon warned customers of being lured by freebies and, instead, suggested that they consider the build quality and the developer's track record. Describing the current Dubai property market as competitive, Menon said although prices have come down by 25 to 30 per cent, the sector still has the potential to do sales worth of Dh40 billion to Dh50 billion every year. And that number will grow by about three to four per cent every year, the senior executive said. The developer has two projects in Mohammad Bin Rashid City - District One, a joint venture with Meydan, and Sobha Hartland. The developer insists it has sufficient land bank for the next 10 years.