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How To Buy Property On Installments In Dubai?

Posted by cafedetech on June 2, 2024

Installment plans with ratios of 10:90, 20:80, 40:60, 50:50, and so on are available in Dubai to buy residential or commercial real estate. Investors can also consider rent-to-own property, a post-handover payment plan, and a 1% payment plan to purchase properties in Dubai in installments.

Dubai’s real estate sector is one of the most flourishing sectors and offers immense returns and advantages to investors. Both locals and foreign nationals seem to be interested in Dubai’s property sector. However, there are a number of people who cannot afford to buy property via cash. If you are the one who cannot pay the lump sum payment then do not worry because you still can be a property owner in Dubai. You can purchase a property via installment.

Benefits Of Buying Property On Installments?

There are different ways to buy a property through a partial payment plan. Before exploring the topic further, let’s first learn about the advantages of installment buying.

Financial Flexibility

Many people cannot buy property with cash because of their limited resources. People who do not have enough money or savings can consider an installment plan. This sort of payment plan offers significant relief, as investors are bound to pay a small portion of the total amount in each installment. The installment plan can be stretched over a number of years, making it quite easy to manage finances.

Expedites Housing Arrangements

If you have limited funds, you can still find your home quickly by sticking to an installment plan. There are payment plans, such as post-handover payment plans and rent-to-own payment plans, that allow investors to get possession of or start living in those properties in a matter of a few weeks. 

Builds Credit History

Routine installment payments also build a positive credit history, improving your credit score and your responsible repayment behavior. A good credit score enables you to obtain a loan or mortgage quite easily, and this process of regular installment payments improves your credit score and qualifies you for future loans.

Secures Your Savings

If you can save a small amount regularly from your monthly expenses, then it is better to invest these savings in real estate rather than saving your money in a bank. If you save your money in the bank, the value of your savings will depreciate over time, limiting your income. However, you can buy real estate with limited savings on installment and the value of real estate increases over time.

Improves Affordability

Buying property in Dubai in installments improves affordability because you have to make payments over an extended period instead of paying at once. It means you can start living a desired lifestyle by buying apartments in Dubai in installments and paying the amount gradually. 

Types Of Installment Plans in Dubai:

Payment During Construction

Under this contract, payments are made throughout the construction phase. A small portion of the total amount is paid in each installment. The ratio of payment plans is not the same in every case; it varies in every plan. Developers or property owners establish payment/ installment plans based on their preferences. Property in Dubai can be sold out in the following ratios: 10:90, 20:80, 40:60, 50:50, etc. 

1% Payment Plan

Under this payment plan, a buyer is bound to pay a mere 1% of the total amount of property in each installment until the full payment is covered. This installment plan is flexible because it does not put any burden on an investor and makes it easy for one to pay the total amount gradually. The 1% payment plan encourages people with limited cash or savings to invest in Dubai’s property sector.

Rent-To-Own Property 

This payment plan makes it possible for a home-seeker to rent a specific property with a choice to purchase it before the end of the tenancy period. The rental payments establish equity. Investors can make a purchase gradually. People who are unable to pay hefty down payments and intend to buy a property on installment where they can move quickly should consider the rent-to-buy property option in Dubai. This payment plan also enables investors to choose zero down payment properties in Dubai and become property owners.

Post-Handover Payment Plan

Under this contract, buyers receive possession after making a down payment. The rest of the payment is paid in installments. A buyer can also use rental income to pay the remaining dues. The installment plan is generally extended over a number of years, facilitating investors with limited cash.

Here Is How To Buy Property On Installments In Dubai!

You can buy villas in Dubai on installments and also buy commercial property in Dubai on installments. Developers offer numerous flexible payment plans to attract investors.

Identify Your Interests And Choose Your Property

First of all, you need to understand your specific needs and requirements. If you understand what you are looking for, then the chances of getting the best option are quite high. So, identify your needs first before starting your search for property. Once you make a decision then start searching for properties that align with your interests. Do not ignore factors such as location, accessibility, developer’s reputation and available facilities during your property research.

Get Services Of A Real Estate Agent

A real estate agent in Dubai can make this process a piece of cake for you. He can find the best option based on your requirements and preferences. A professional will save your time and effort and also assist you in making a profitable decision. Consider Kelt & Co Realty to choose the best real estate investment option in Dubai.

Choose A Payment Plan

Developers offer a number of installment plans to streamline the payment process and facilitate investors. You can choose an installment plan that suits your financial situation. Discuss with your real estate agent and then decide the most appropriate one. At this stage, you are also required to comprehend the terms and conditions associated with the purchase of this particular property.

Draft Your Contract And Sign The Agreement

It is necessary to ensure that the property and developer are registered with the Dubai Land Department (DLD). Gather your documents, discuss your concerns, and create a draft. Give it a thorough read and then sign the sales agreement. After that, register your property with the DLD Department Dubai.

Consider The Following Tips To Buy Property On Installments In Dubai:

  • Conduct thorough research about the type of properties available on installment, the average prices, their locations, and available payment plans. Understanding the local market will reduce the risk of overspending. 
  • Always choose a property that is located at a prime location and is conveniently linked with other popular areas of the city
  • Find out about the legal status of a specific property before making a purchase to secure your investment. This early investment will prevent you from investing in illegal properties
  • Do not ignore set rules and standards. Adhere to all rules and guidelines, meet with the developer, and discuss any concerns before purchasing a property in Dubai.

The Bottom Line:

Buying real estate in Dubai is one of the most beneficial investments. People who do not have much savings or income can also buy real estate in Dubai through installment plans. Developers in Dubai offer numerous payment plans to ease the property purchasing process and facilitate investors. If you intend to buy a property with limited cash, then consider a 1% payment plan, rent-to-own property Dubai payment plan, payment during construction, and post-handover payment plan to buy ready-to-move-in and off-plan properties in Dubai.

Dreaming Of Owning Property In Dubai? Let’s Make Your Dream Come True:

Kelt & Co Realty is a real estate agency that offers services across Dubai. It facilitates renting, buying, and selling real estate. Whether you are interested in ready-to-move-in or off-plan properties in Dubai, our professionals can guide you through the entire process. You can also discuss different payment plans and prospects with our real estate experts to make a decent decision.


What properties in Dubai have a 1% payment plan?

Under the 1% payment plan, an investor is required to pay only 1% of the total amount in each installment. Properties that offer a 1% payment plan are Danube Eleganz, Elz, Lawns, Resorts, etc. 

What is a 60/40 payment plan in Dubai?

Under this payment plan,a buyer is required to pay 60% of the total amount via installments, and the remaining 40% is paid upon the handover of the property.

Can I buy the property and then rent it out?

Yes. You can buy property in Dubai and rent it out. You can also use rental yields to pay your remaining dues. Foreign nationals can also purchase properties in freehold areas of Dubai and then rent them out to yield profit.

What are the common payment plans for buying property in Installments in Dubai?

Common payment plans include rent-to-own property in Dubai, a post-handover payment plan, a 1% payment plan, and an under-construction payment plan. 

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