Dubai developer says wants to reassure investors of stable growth
Damac Properties is offering a 24 percent rental guarantee over three years on some of its properties in an attempt to court investors.
The Dubai-based developer was earlier this month caught up in the controversy over US presidential hopeful Donald Trump’s proposal to ban Muslims from the United States.
It sought to distance itself from Trump by issuing a statement asserting that its commercial agreements “are with the Trump Organization”, rather than the controversial candidate himself.
However, it quickly restored Trump’s name at its $6 million Akoya golf resort after a plaque spelling out “Trump International Golf Club” was removed a few days earlier.
Damac said in a statement it has launched the rental guarantee on selected units “to provide peace of mind to investors looking to capitalise on attractive prices in the Dubai real estate market.”
Under the offer, owners will be able to receive eight percent annual returns for the first three years following handover of the units.
Niall McLoughlin, senior vice-president of Damac Properties, said: “We strongly believe that Dubai is set for stable growth in the medium term and we are backing that up by offering a 24 percent rental guarantee to give reassurance to buyers.
“Eight percent a year return for three years is at the top end of any real estate market in the world and we are the only luxury developer in Dubai currently offering such a secure investment proposition.”
The projects included within the guarantee are selected villas at Akoya Oxygen and Akoya by Damac developments, Damac Towers by Paramount Hotels & Resorts (A, B and D), NAIA Ghalia, Damac Maison Majestine, Merano Tower, Paramount Tower Hotel & Residences, Damac MaisonPrivé (A and B), and NAIA Vantage.
McLoughlin continued: “We have seen quite a bit of scaremongering in the market in recent months, which can have a detrimental effect on sentiment in the market.
By providing such a high, tax-free offering on our units, we are putting our head above the rest and underwriting any fluctuations that may occur down the line.
“When you also factor in the potential for capital growth, I don’t know of a better, more secure investment opportunity anywhere.”