4 types of payment plans for Dubai Real Estate Purchase

 It is scary to imagine a life without a residential property of one’s own. Beyond just a shelter, having a home is more of an investment that would result in a massive ROI with time. The constant hunt for the best location and homes is one main reason for the real estate business to not lose its position and worth on the economic graph. However, investing in a property is a commitment that would last for several years or decades based on the total worth of the property. The real estate sector has been gaining momentum after the covid outbreak and is steadier than ever at the moment. People from overseas are seen purchasing homes in other parts of the world, especially in Dubai and other states of the UAE. The business has strengthened in Dubai over the years and is flourishing currently. 

Applying for a mortgage loan is a common way of investing in homes in this country. One intriguing aspect is that, apart from the citizens of the UAE, even the expat population can apply for loans once they are considered eligible and approved by the local lenders. Despite the repetitive changes taking place in the real estate business, it is not affecting the demand for homes or the number of properties for sale in Dubai in any manner. The buyers need to be aware of all the available packages before applying for a mortgage on a home in Dubai so they can choose the best one and reap the benefits in the long run.


Every industry or business has got its highs or lows beyond which they struggle to jump back to normal working conditions. The real estate business in Dubai is one of the most talked about topics due to the striking designs and luxury emanating from most neighbourhoods. With world-class architecture and lucrative tax exemptions, Dubai has been the best place for any investor to make their best buy in the property sector. Over the years, there have been several factors that disturbed the stability of this sector like an economic downfall, mass downfall in businesses, worldwide pandemic and lockdown etc. Despite all these tremors, the real estate business always sprung back into action with more newbuilds and other properties on sale. The year 2022 has been gearing upwards with an 83.5% increase in the number of buyers lined up for investing in Dubai homes. 


  • 10/90

For Dubai off-plan buildings, developers frequently provide this type of payment plan to ease the buyer’s financial requirements. Going by the name, a buyer can get a property by paying 10% of the entire cost of the property up front, while the remaining 90% can be paid back in instalments. This payment plan is a very recent change that is preferred by both investors and purchasers. Real estate agents in Dubai use this plan to either increase the number of listings in their inventory or purchase a property in Dubai in a secure and convenient manner. Those with limited funds can choose developments that provide such payment options to reserve a property under their name, 


The convenient payment schemes are broken down into various percentages that can also be disbursed at different phases of construction or before handover. This payment process is divided into two distinct stages: the building phase and the handover phase. The buyer can make payments over time and before getting access to their property with this payment plan, which property developers frequently provide throughout the development phase. Additionally, buyers would have the choice of obtaining a mortgage to cover the outstanding balance. In this method, the flexible payment plans have diverged into several percentages that can be paid at various stages of construction or before handover.


The term- post-handover payment refers to the buyer’s ability to make a payment after receiving possession of their Dubai property. But before they can possess the specified property, they must still pay a specific portion of the overall cost. Investors shopping for properties in Dubai are typically the target audience for this type of payment plan. They can manage the house and rent it out after transfer, which is pretty convenient for them. The remaining balance is delivered using the rental yield. Dubai’s excellent rental yields and return on investment have contributed to the success of this payment structure over the last few years.


Only ready-to-move-in properties are eligible for the rent-to-own payment plan, which is geared for end users. Buyers who lack the financial means to purchase a house in Dubai with an upfront payment would benefit more from this option. According to this arrangement, the landlord and renter sign a tenancy agreement for a fixed number of years. The annual rent is higher with this payment schedule when compared to market rates. Following this arrangement, the tenant will become the buyer of the aforementioned property in Dubai if the terms of the contract are effectively completed by both sides. They can obtain a mortgage from banks or private lenders for the balance.

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