Nakheel offers discounts

Angela Giuffrida and Sarmad Khan

• Last Updated: May 20. 2009 8:53PM UAE / May 20. 2009 4:53PM GMT

Nakheel, one of the largest property developers in Dubai, is offering its customers discounts of between 10 per cent and 30 per cent on some of its projects to encourage them to pay on time.

To qualify, buyers will have to settle outstanding balances and continue to pay their instalments on time. The scheme is available to those who have bought in Jumeirah Island Mansions, Jumeirah Heights Clusters, Badrah phases one and two, Marina Residences and Veneto.

“Nakheel is aware that the current economic conditions pose a challenge to some customers and is, as such, introducing some initiatives to help customers meet their commitments and obligations towards Nakheel,” the company said.

“Customers are presented with the chance to save a certain percentage on the total value of their property if they pay on time. This is in line with our responsible actions to help maintain a healthy market movement and deliver properties to customers in a timely manner.”

Nakheel is owned by Dubai World and recently announced it was drawing funds from the Dh36.7 billion (US$10bn) Dubai government bond. It is the latest Dubai developer to come up with incentives to limit defaults.

Union Properties said in February it had offered buyers a 10 per cent discount on the balance of their outstanding payments across all of its projects.

Deyaar Properties announced a string of measures in March, including giving customers discounts of up to 30 per cent on its projects to account for lower construction costs, and has offered buyers the chance to transfer their investments between projects.

Emaar Properties, the largest developer in the UAE, has relaxed payment plans and is allowing those who have invested in projects not yet under way to transfer their purchases to those that are being constructed.

Developers have put new project plans on hold and have pledged to complete their current projects.

Nakheel has about Dh116bn worth of properties under construction in Dubai, including 2,200 villas at Jumeirah Village and 900 at Jumeirah Park, which are due for completion by the end of the year. Another 2,000 homes at the Al Furjan development are expected to be delivered at the end of next year.

Last month, the company posted a 90 per cent profit decline for last year, compared with 2007, as it made “impairment charges” of Dh4.8bn, including Dh678 million in contract termination costs.



agiuffrida@thenational.ae

skhan@thenational.ae