Buying a house in installments in Dubai + rules Advantages and disadvantages

Due to the significant advancements in construction and real estate development, the United Arab Emirates has garnered widespread attention for property investment. Buying property in this country has become a popular choice globally. The appeal of Dubai's real estate goes beyond factors like high-quality housing, affordable property prices, off-plan apartment purchases, and tax-free benefits. One crucial factor contributing to its popularity is the option of buying a house on installment in Dubai, which has played a pivotal role in this appeal.

The easy and convenient conditions for purchasing a house on installment in Dubai have transformed the dream of owning a residence in this Middle Eastern gem into a reality for every foreign individual who wishes to live in this city but doesn't have the ability to pay the entire cost upfront.

If you also aspire to live in one of the most advanced and modern cities in the Middle East and want to be informed about the installment payment conditions, make sure to stay with us in the continuation of this article on Nivoo (a real estate website for buying property in Dubai).

Why Buy a House on Installment in Dubai?

Buying a property has always been one of the concerns of life for every individual around the world. Especially if acquiring a residence is to be done in a secondary country, it requires careful consideration and examination. However, sometimes deciding between buying on installment or paying in cash can be a bit challenging.

In a comprehensive article previously published on the NewVi website, we thoroughly discussed the Pros and Cons of Buying Property in Dubai. We elaborated extensively on the advantages of property ownership in Dubai, citing factors such as the absence of taxation, inflation management, and more. Due to all these mentioned benefits, a significant number of individuals today aspire to buy homes on installment in Dubai, enabling them to access the luxurious amenities available in the city.

The latest published statistics indicate an annual increase in the value of properties in Dubai compared to the previous year. Buying property on installment in Dubai is one of the solutions that can help you preserve the value of your money. Furthermore, by utilizing the conditions of purchasing homes through installment plans in Dubai and making equitable payments, you can enhance your job opportunities, cultural experiences, well-being, and economic status while living in this city.

Types of Installment Methods for Purchasing Property in Dubai

Buying an apartment on installment in Dubai is a good option for those who cannot afford to pay all the costs upfront in cash. In one of the comprehensive articles published on the New Way website titled Buying a House in Dubai, all the necessary information about property ownership in Dubai has been thoroughly discussed.

Generally, there are various options available for purchasing property on installment in the UAE. The choice of each method depends on factors such as the type of project, the construction company, the installment repayment terms, the initial payment capability, and more. For buying a house on installment in this city, there are four different methods, which are comprehensively discussed in the following section.

1- First Method: Post-Delivery Payment

One of the methods you can utilize to proceed with buying property on installment in Dubai is the option of post-delivery payment plan. This approach is popular for property ownership in Dubai. As the name implies, the property is delivered after the payment is made. Depending on the terms and agreement between the seller and the buyer, the payment can be spread over a period of 3 to 10 years.

This method is beneficial for both investors and sellers. With this approach, investors can become property owners in the desirable city of Dubai without having to pay the full amount upfront. An important point to note is that the individual looking to buy property on installment in Dubai needs to make an initial payment of a specified percentage of the total amount, as agreed upon by both parties.

2- Second Method: 10/90 Payment Plan for Buying Property in Dubai

The 10/90 plan is another popular method for buying property on installments in the UAE. In this approach, the buyer needs to pay 10% of the property cost upfront, and the remaining 90% is paid according to the agreement between the parties within a specified timeframe. This fair payment method has gained significant attention due to its advantages.

3- Third Method: Payment During Construction or Property Handover

The previous method required an initial 10% payment at the beginning of the transaction. Fortunately, there are other installment plans with different ratios that have made investment in Dubai more accessible. These installment payment ratios can be based on agreements like 50-50, 30-70, 40-60, and so on, with payments spread over a defined timeframe, either before property delivery or during construction.

In this method of payment, you have the flexibility to split the payment into two stages:

• During Construction
• At the Time of Delivery

An important point regarding this payment method is that individuals can use housing loans to facilitate the payment of the remaining amount.

4- Fourth Method: Lease with Option to Buy (Rent-to-Own)

Lease with option to buy is another convenient method for buying property on installment in Dubai, making the process of becoming a homeowner in one of the popular Middle Eastern cities easier! The method of property ownership works as follows: after both parties agree on the terms of the deal, the property owner places their residence under a lease contract for the buyer. Then, according to the agreed-upon terms, ownership of the property is transferred to the buyer after completing the installment payments.

In this contract, the time and amount required for payment are predetermined. Typically, since the down payment amount is added to the rental amount, the paid rental amount might be higher. It's important to note that the customer can also pay the remaining balance with a loan or exclusive mortgage.

Minimum Down Payment Required for Buying Property in Dubai

The minimum down payment required for buying property through installment in the UAE is at least 400,000 dirhams. Additionally, the minimum purchase price for a property in Dubai is around 5.395 billion Iranian rials (approximately 5.395 billion Toman). If you're interested in obtaining more information in this regard, you can refer to the article Cheapest House in Dubai available on the website.

Visa Conditions with Installment Property Purchase in Dubai

Fortunately, with the new conditions approved by the United Arab Emirates, obtaining a visa for foreign individuals who own property in Dubai has become possible under specific circumstances. In this scenario, the individual must select the desired property and enter the UAE with a tourist visa. Afterward, the property deed is transferred to the person, and they can then proceed to apply for a residency permit. The required time for obtaining the residency permit is approximately two weeks. However, the issuance of the visa is subject to certain conditions, including:

• The property purchase should be made from a free zone area in the United Arab Emirates, such as Dubai.
• The minimum value of the purchased property by the individual should be 1 million dirhams.

Payment Conditions for Property Installments for Different Groups in Dubai

In order to take advantage of the option of buying property on installments in Dubai, there are certain individual conditions that need to be considered. Some of these conditions include:

Group 1: (Individuals with UAE Residency)

Buying property on installment in Dubai for individuals with UAE residency is done as follows: First, they need to provide the necessary documents to the bank, open an account, and receive a checkbook. Then, they should visit real estate consultants. Some construction companies in Dubai may initially receive 10 to 15 percent of the sales amount from the applicant and then collect the remaining amount from the buyer on a 3-month or 6-month basis.

Group 2: (Individuals without UAE Residency)

This group of potential buyers of property on installment in Dubai consists of individuals who do not have UAE residency. These individuals can take possession of the property by paying 375,000 dirhams out of the total property value, which must be worth a minimum of 750,000 dirhams. They can then proceed to pay the remaining installments.

Advantages of Buying Property on Installment in Dubai

Some of the advantages of buying property on installment in Dubai include the following:

• One of the easiest methods to become a homeowner in one of the finest cities in the Middle East.
• Possibility of making payments in installments for those who cannot afford the full property cost upfront.
• Lower risk level for purchasing.
• Suitable business policies in Dubai.
• Appropriate payment timeframes.
• Increase in the value of apartments and properties in Dubai over time.

Concluding Thoughts on Buying Property in Dubai through Installments

In this article from Neovii (a property search website in Dubai), we have endeavored to provide comprehensive information regarding Buying Property in Dubai through Installments for our valued readers. By utilizing this method, you can become the owner of a beautiful property with all the comfortable amenities that Dubai has to offer.

If you need further information in this regard, you can contact our consultants through the communication channels available on our website on a daily basis, and take advantage of our free consultation services.