Real estate in Dubai in installments: convenience and affordability

Dubai attracts many investors and real estate buyers due to its rapid development, high standards of living and favorable conditions for investment. One of the most attractive aspects of buying real estate here is the possibility to make it in installments. Let's take a closer look at how installment payments for under construction and ready-made housing in Dubai work, as well as how easy and safe this process is.

Buying real estate at the construction stage in Dubai is a great opportunity to invest in the future at a favorable price. Installment payment for the purchase of housing under construction is formalized as follows: from 50 to 70% of the total cost are distributed on a payment schedule during construction. The size of the initial payments depends on the developer. The remaining part is paid only upon completion of construction and commissioning of the housing. Payments are correlated to the stages of project readiness.

The readiness of the project does not depend on the developer's reports, but is confirmed by the state inspection. Payments related to construction stages allow investors to control the fulfillment of the construction plan and additionally protect them from developer's risks.

Currently, in Dubai's new-build sector, legislative measures significantly reduce these risks for end buyers through strict requirements for developers. Before construction and sales begin, developers are required to deposit a substantial portion of the project cost into a special regulator-blocked account until the property reaches 50% completion. This means that developers risk their own capital rather than investors' money.

If you prefer to move straight into your new property or start earning an income from renting it out, buying a ready-made home on an installment plan is ideal.

The rent-to-own model is often used for ready-built housing from the developer. In this case, the installment is actually a lease with the condition of transfer of ownership. As a rule, the rent payments are higher than market prices. After the tenants pay the full amount of the contract through the lease, the property becomes their property. The main condition is that the buyer must make a down payment, which includes an advance amount set by the developer.

In Dubai, you can make installments even when buying an apartment on the secondary market. This option is less common, as such transactions are quite rare in the Emirate. Nevertheless, there are customers who want to buy a particular property in a particular location. It is also possible to buy a dwelling with existing tenants.

In the UAE there is a favorable combination of installment and mortgage lending. But foreign nationals can get a mortgage in Dubai if they have a local bank account and a residence permit in the country. Mortgages in local banks can be issued for both ready-made objects and projects that are in the final stages of construction. Most banks grant mortgages if the project is 80% complete. For foreigners, the maximum mortgage is usually 50% of the value of the property. Thus, the last installment payments can be made with a loan that can be up to 50% of the value of the property.

All installment payments are subject to strict regulatory oversight to ensure their safety. This ensures complete transparency and protection of your investment at every stage.

In Dubai, the developer offers installment options, with payment schedules varying depending on the specific project. The investor just needs to discuss the available payment options and select the appropriate schedule, and a representative of the developer will prepare all the necessary documents.

Investor payments are protected by both the bank and regulators. Developers can only make installment payments through banks accredited by the Dubai Land Department (Dubai Land Department). Payments are transferred to the developer's account only after the relevant regulators have verified the readiness of the project.