Dubai’s Property Credit Note Market On The Wane

Demand for credit notes, given to investors of cancelled real estate projects in Dubai, has waned as discounts given to potential buyers has dropped, property experts have told Arabian Business.

Discounts offered on credit notes, which flooded the market after developers cancelled hundreds of projects in the emirate, have declined by as much as 40 percent, forcing many agents to give up sales altogether.

“So many projects were canceled and owners just wanted to get out so there was a big influx right at the beginning but there has been a massive drop in terms of what people are doing because the demand isn’t there,” said Stuart Raine from real estate consultant Cluttons.

“The last deal I did with them [credit notes] was probably about a year or so ago and we were doing a deal with about a 43 percent discount; now they are available at 20-25 percent discount,” he added.