Off-plan property sales model 'defunct'

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OFF-PLAN: Property sales model now 'defunct' claims Capitala deputy CEO. (Getty Images)

Peter Wilding, deputy chief executive of Abu Dhabi property developer, Capitala, said on Tuesday the off-plan model where homes are sold before building even commences, is now 'basically defunct'.

In a report carried by The National newspaper he said: ''We haven’t officially changed anything but it is certainly under review to change the payment plans.''

While the off-plan model worked during the boom years beginning at the start of the decade, buying interest has subsequently been drying-up with credit becoming increasingly scarce.

Capitala last year unveiled its maiden project, Arzanah.

Arzanah is located on a 1.4 million square meter site surrounding the Zayed Stadium at the gateway to Abu Dhabi, and is designed to be a mixed-use development offering a blend of residential, leisure, sports and retail units.

Facilities include an exclusive club and spa, a 2-kilometre stretch of private beach, a canal flowing through the development, communal gardens and extensive walking and cycling trails.

Mr Wilding told the newspaper the company’s strategy would now be to start offering homes that were in line with market demand.

Changing the payment plan to have most of the money due after construction would also help convince buyers to make an investment, he added.

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