Private developers who have been withholding their units from the market are now selling them at 2006 price level, making them more affordable for end-users.

Developers told Emirates Business they were making an extra effort to maintain good relations with investors by giving priority to existing customers when selling units.

"We had cut price on our MAG 218 project at Dubai Marina a year ago to 2005 level," said Mohammed Nimer, CEO, MAG Group Property DevelopmentMAG Group Property Development.

"When the crisis started, we had 30 to 40 apartments unsold in the building and we sold them at Dh800 per square foot."

He said during the peak of the property boom, in late 2007 and the beginning of 2008, prices at MAG 218 were around Dh1,600 per sq ft. MAG 218 is a residential building with 561 units located next to Marina Pinnacle and Marina Heights. The project is due to be handed over in March 2010.

Roger Wakeham, Director, Development, CHI Development Group, said: "Our Lime Tree villas cost Dh2,500 per sq ft in 2008. Just last month, we sold three villas for Dh1,500 per sq ft.

"The entire development will feature 121 villas in all with 101 already sold. We plan to sell only five more villas and will retain the rest. The real estate market has seen elasticity in prices."

Ahmad Abuljobain, COO of Tiger Properties-Dubai, said: "In terms of prices we are taking into consideration how we can benefit our customers. For example, if a customer is paying cash we will offer a discount.

"The percentage of the discount will vary depending on the project. We, the developers, are weighing up the impact of pricing and payment terms for our customers in light of the market conditions. Prices generally have fallen 30 to 50 per cent, we have lowered our prices to 2006-2007 levels." He said Tiger Properties was seeing a good percentage of its existing investors buying its other projects.

Nimer said some of MAG's customers had considered investing in their other projects and the developer was making efforts to retain its customers in light of the market situation.

"All the customers we have dealt with are keen to invest in other projects of ours. We are ensuring that all our customers are satisfied."

The group has set up MAG ME, a facilities management company that will manage all MAG's properties. MAG ME has set a maintenance charge of less than Dh10 per sq ft for MAG 218."

"All our maintenance charges are in line with Rera's guidelines. We have been forced to set up our own facilities management company in the absence of comprehensive regulation of maintenance and service charges."

The developer is preparing to hand over the project and has begun the process.

"Residents will start moving in by March on MAG 218 with the handover expected to take one to two months."

Wakeham said his firm has made efforts to maintain good ties with investors. "We are keen to work with our investors on a regular basis and in fact we will be having some investors on Lime Tree Valley forming a joint venture with us for some of our future launches across Dubai," he added.

He said none of the existing investors in the Lime Tree Valley project have asked for a discount on the prices they had signed up for.

"They all understand the situation and have taken a mature decision to buy at a certain time at a certain price. They are sticking by that," Wakeham said.

Lime Tree Valley is a golf development comprising 121 villas around the Earth golf course designed by Greg Norman at Dubai's Jumeirah Golf Estates.

The eight Mediterranean-style villa types in the development range in size from 4,200 sq ft to 7,000 sq ft.

Construction of Lime Tree Valley began in July 2007.

"For us each and every transaction is evaluated. We keep updating our customers on the status of the projects and give them technical updates," Wakeham said.

Tiger Properties' Dubai Marina Pinnacle will be handed over in December 2010. It is currently around 80 per cent complete. "Marina Pinnacle is selling at around at Dh950 per sq ft to Dh1,250 per sq ft," said Abuljobain. "It was previously Dh2,500 per sq ft during the peak of the market."

Marina Pinnacle will have 764 residential units, including one-, two- and three-bedrooms.

Abid Junaid, Executive Director of ETA Star Properties, said: "We have not launched anything in 2009. Our focus this year and next year is on consolidating our existing projects. Currently we are delivering three projects, Liberty House, Gold Crest and Gold Crest Views.

"As for what we launched in 2008, everything has been sold. As of 2010, we have about five to 10 per cent of the units in every building left to sell. We will be selling those at 2007 price levels." - Zaywa