Dubai: Dubai’s developers are in no rush to let go of their sales rush and evidence suggests they have no need to. Apartment and villa sales recorded volumes of Dh31 billion in the first six months at a time when the local and regional economies are still on the mend.

Just as important for local developers, foreign nationals (including those resident in the UAE), accounted for 70 per cent of the transactions during the period. And these contributions made up 49 per cent of the total in value terms.

The developer formula for success is quite clear — don’t wait around to launch sales and make sure to pack in as many incentives as possible through generous post-handover payment plans and waivers of registration fees.

They even have different strategies depending on whether the buyer is an investor or a genuine end user — even within the same project.

For the latest J One development, one of the twin towers has units more suited for investor purposes while the other — featuring larger formats — is aimed at end users, according to a top official.

There have been tower launches where the apartment mix has been skewed towards studios, because it was felt they stood a better chance with investors.

The biggest winners in tapping buyer interest have been Dubai South (with a rise of 672 per cent in transactions), followed by Jumeirah Village Circle (191 per cent) and Creek Harbour (50 per cent) on a year-on-year basis.

According to Reidin-GCP data, freehold apartments in Dubai still generate average yields of 7.2 per cent (as of July 17) against the 7.5 per cent in January. The dip was principally to do with the softening in property values. But they are still good enough to get investors in.

“Yields have not fallen by as much as the fearmongering that has taken place, and in areas such as Jumeirah Village Circle and International City, yields remain north of 8.25 per cent,” said Sameer Lakhani, managing director of Global Capital Partners.

Investors are also more than willing to search out emerging destinations and not just opt for the tried and tested in Dubai Marina, the Downtown and JLT.

“The sharpest jumps in off-plan transactions, unsurprisingly, are in communities that are developing [albeit at different rates],” said Lakhani. “These locations — Dubai South, Jumeirah Village Circle and Creek Harbour — have allowed developers the flexibility to attract different price points, thereby attracting investors and end users at different segments of the market.

“Clearly, post-handover payment plans [the real estate equivalent of quantitate easing] have helped matters. But what it also highlights is a maturing market where price sensitivity has been at its highest levels since the advent of freehold. This is yet another indicator of end user activity increasing.”

But how heavy is the end user participation? Going by the first-half Dubai Land Department numbers, mortgage levels touched a new high, making up 56 per cent of all transactions and that is up from the 31 per cent seen in 2014.

“While all of this does not necessarily indicate end user activity surging by itself, it is a strong indicator that buying has become more long term in nature,” said Lakhani. “What we also see is that in developed communities, such as Emirates Living, there is less ‘float’ in the market [meaning lower units for sale on a year-over-year basis]. Unsurprisingly, these are the communities where price rises are being witnessed.”