Payment Options For Purchasing Property in Dubai


The real estate sector in Dubai has certainly progressed so much in the past few years. The UAE attracts investors from around the globe as it promises a high rate of interest and an extremely favourable and lavish lifestyle.

The fully developed sky-touching marvels nesting here clearly testify to that fact. There is a wide variety of properties available in Dubai, from villas and townhouses to apartments in secure complexes.

Luxurious houses with proximity to entertainment, recreation and retail options are available for purchase with great payment options even for foreigners. There are many types of payment plans for buying a property in Dubai.

Once you are determined about the type of property which interests you the most, check out the payment options for purchasing a property from the developers in Dubai.

Foreigners need to consider exchange rate fluctuations when buying property in Dubai, as it is difficult for most people to make a 100% upfront payment.

Many property developers offer their clients a comprehensive payment plan for ease and convenience. While purchasing property in Dubai, a payment plan specifies the amount and number of instalments to be paid over a fixed period.

Four types of payment plans for buying property in Dubai

Located in the UAE, Dubai is a beautiful city and living here is quite a dream for many, but when it comes to obtaining a visa to live here, things can get a little complicated because several steps must be followed to get a visa. This article will address those points.

Post-handover payment

As the name suggests, this payment option allows buyers to make the payment after the property in Dubai is handed over. However, you have to pay a certain percentage of the total amount before owning the said property.

This payment method was introduced in late 2013, the reason behind offering post-handover payment was larger developments. But the popularity of this payment plan benefitted the private developers as well.

This sort of payment arrangement is mostly aimed at investors seeking homes in Dubai. It is quite convenient for developers since they can take over the property and rent it out after the transfer. They settle the remaining balance with the rental income.

The fact that the return on investment in Dubai is substantial, as are the rental returns, has contributed to the success of this payment plan.

End-users (buyers) also choose this payment plan since it allows them to settle into the home they have acquired while still managing the remainder of the payment.

10/90 Payment

It can be termed as a more aggressive form of post-hangover payment plan. Developers often offer this payment plan for off-plan properties in Dubai.

As the name suggests, 10% of the total value of the property in Dubai is to be deposited in the initial stages, while the rest of the 90% is paid in instalments till the time of handover.

This is a relatively new payment plan that is popular with both buyers and investors. It provides them with a secure and quick method of purchasing a home in Dubai or adding new listings to their inventory.

Those who are short on funds might take advantage of projects that provide such payment options and reserve a home in their name.  

Payment in instalment until Handover

This one is considered to be one of the most regular payment plans. This payment plan is divided into percentages paid at the different stages until handover.

For instance, if you have a 70:30 payment plan, you will pay 70% of the total amount in instalments until handover and the rest 30% on handover of the property.

This type of payment plan for buying properties in Dubai can often be seen in the ratios of 10:90, 20:80, 40:60, 50:50, 60:40, 70:30, 25:75, etc. The ratios vary from developer to developer.

This payment plan is divided into two parts: during construction and after handover. This payment plan is frequently offered by developers during the building phase, allowing consumers to make payments over a while before obtaining the keys to their house.

Clients would also have the option of taking out a loan to cover the remaining balance. They'd be able to pay in instalments while still owning their home, albeit to the bank rather than the developer.

Rent to own Property

One of the popular modes of payment in many countries. The rent to own property plan is for targeting end-users and is available for ready to move in properties only.

A tenancy contract for X years is signed between the landlord and the tenant under this model. In this payment plan, the annual rent is more than the market price.

If the provisions of the contract are effectively completed by both parties, the renter will become the buyer of the aforementioned property in Dubai, according to this agreement.

The renter can use the rent money as a down payment on the property using this strategy. They can seek a mortgage from a bank or a private lender for the remaining sum.

Last words

Keeping in mind the high property prices in Dubai, the above-mentioned payment plans will definitely go to work out well for you. But not every property in Dubai comes under these payment plans, even if it is a project of the same developer.

So don’t forget to do your share of research before choosing one of the plentiful properties available there and after that make your decisions.

Related Articles