Bored of living at one location? No need to spend millions to choose another place of your choice – Try Property Swapping.
Globalization has made life more competitive and challenging. Technology has surpassed in every field of life. Earlier you pay via cash, than through plastic money now people have opted for cyber currency. These changing trends are transforming every industry especially when it comes to the real estate market.
It’s a cut-throat competition as there are many real estate companies with limited buyers. According to Asteco’s Q4-2019 UAE real estate report, Dubai’s sales market in 2019 saw drops of 13 to 15 percent for apartments, villas and offices alike. Office rental rates saw the most significant declines – of 12 percent – followed by apartments with 11 percent and villas at 10 percent.
Because of the competitive market, there’s a strong need to introduce a new buy-to-buy system called SWAP. Very few people are aware of property SWAP. It’s like an exchange of property keeping in consideration the benefits. Usually, in property sale, there’s a seller and a buyer but in SWAP there’s a buyer and another buyer.
In December 2019, Aldar Properties and the Abu Dhabi government agreed to swap land in key locations in the UAE capital. As part of the transaction, the biggest developer by assets in the emirate had received infrastructure-enabled territory with a gross area of approximately 3 million square meters.
The Abu Dhabi government, in return, received lands with a comparable area in Al Raha Beach West and Lulu Island, along with certain plots inside the main island.
The exchange of property is quite akin to the SWAP of any commodity or service. It’s just like if a person is exchanging his Samsung phone with an iPhone or a renowned fashion brand offers a shoot in exchange for services of a leading photographer.
The SWAP of property works simply. Party A takes a few clicks of his property and shares with the SWAP Service providers in the industry could be a real estate company. Similarly, Party B does the same process and register with SWAP specialists.
Both parties enter into a third party agreement with that SWAP Specialists or real estate company to retain the confidentiality and execution of the complete transaction. If their properties are of the same worth than there’s no need to pay anything but if there’s a difference in market value in the property the other party will pay the differential amount.