Fewer buyers attend real estate show

Abu Dhabi: UAE exhibitors showcasing their projects at the Abu Dhabi Real Estate and Investment Show here told Gulf News yesterday they are finding buyers hard to come by in a slowing economy hit by the global financial crisis.

On Tuesday, until well past three in the afternoon, the sales staff of some 40 exhibitors almost outnumbered the visitors at the Abu Dhabi National Exhibition Centre, where the three-day event is taking place.

Abu Dhabi's top two real estate companies - Aldar Properties and Sorouh Real Estate - are also participating.

"We are finding problems to find buyers for the projects we are showcasing here - Al Ghadeer and Arc Tower. It seems the buyers are waiting for the market to get stable," a sales executive of Sorouh said on the condition of anonymity.

A sales executive for Corner Stone Real Estate, Majid Al Shafe'ei, who was trying to sell projects of Rakaa Real Estate - Dynasty and Falcon Crest on Reem Island on Shams Abu Dhabi - said he hadn't been able to sell any units, late into the afternoon on the first day.

"It's zero so far. But we are trying. The cash flow is not there. There's no money with the banks to finance," Al Shafe'ei said.

One of the reasons why the buyers have turned their backs on the UAE real estate market could be the high prices of properties on offer. And the realtors are unwilling to drop their prices, not just yet, despite their build-up in inventories.

Executives of Sorouh and Hydra Properties said they are not dropping their prices to woo customers.

"We haven't dropped our prices, nor are we giving any discounts," said a Sorouh executive.

The only concession Hydra is giving customers is that it has broken the one-time, 10 per cent down payment into three parts.

"The 10 per cent down payment has been broken up into payments of 2.5 per cent, 2.5 per cent and 5 per cent. Between the first and second payment, there's a 30-day period, while the gap between the second and third payments is 90 days," said a Hydra executive.

• 10% down payment is split into three by Hydra
• 30 day period between first and second payment
• 90 day gap between second and third payment