The heavy rains that pounded the UAE last week caused significant damage and disruptions across the country. Now, in a bid to offer some relief, major property developers in Dubai are considering plans to defer monthly installment payments from homeowners for 1-3 months. This move comes as construction work was halted at many project sites due to flooding and authorities directed banks to allow payment delays for affected individuals.
The unprecedented downpour wreaked havoc at construction zones, with sites getting waterlogged and repairs needing to be done. Developers are still assessing the full extent of damages and costs of restoration work. This has immediate financial implications as the required funds will take time to be released by insurers.
At the same time, property owners who purchased off-plan units and are paying developers in installments every month are also dealing with difficulties due to the rains. Some may have suffered losses in business or income. Meeting monthly payments could be challenging in the short term.
Recognizing these issues on both sides, leading companies like Azizi Developments are internally discussing proposals to pause one or two installment collections from property owners for a brief period. This will offer much-needed breathing space. Developers stressed they will bear the costs of rain damages themselves rather than pass it on to investors.
The proposed deferment of 1-3 months aligns with instructions from the UAE Central Bank for banks to delay loan and mortgage payments by homeowners for up to 6 months. This provides payment relief across the board for flood-impacted individuals. Developers are also consulting property owners to finalize a solution acceptable to all.
Azizi’s CEO Farhad Azizi assured they are committed to on-time project deliveries despite work stoppages. Two experts are also being hired to strengthen site management practices. He said deferment plans will be announced soon exclusively for affected buyers. Other major players are evaluating similar steps to ease financial burdens in the short term.
While the long-term impacts of last week’s heavy downpour are still being assessed, immediate actions like deferred payments will offer valuable relief. Developers and authorities are working closely to support all stakeholders through this challenging period. Once restoration work is complete and business returns to normal, payments schedules are expected to resume as before.
The coordinated efforts show how the real estate industry and regulators are prioritizing community well-being over commercial interests when crises occur. This coordinated approach will help the country bounce back from natural disasters more quickly while protecting livelihoods. It also demonstrates the UAE’s resilience even in the face of extreme weather conditions.
