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

With a house installment purchase in Dubai, you can buy your desired property in the UAE by paying an initial down payment of 10 to 25 percent and spreading the remaining installments over a period of 2 to 10 years. There are four main methods for buying a property on installments in the UAE: 1- Post-handover payment, 2- 10/90 payment plan, 3- (X/Y) installment plan, and 4- rent-to-own agreements.

One of the most popular options is the post-handover payment plan. In this method, depending on the agreement between the buyer and the seller, the total payment is divided into specific installments over a defined period. If you want to learn more about the other installment options for buying property in Dubai, continue reading this article from New Way — your trusted real estate partner in Dubai.

Why Buy a Property in Dubai on Installments?

Recent statistics show a steady annual increase in Dubai’s real estate value compared to the previous year. Buying a property in Dubai through an installment plan is one of the best ways to preserve the value of your money. Thanks to flexible and fair payment terms, installment-based property purchases allow you to improve your professional, cultural, and financial situation while enjoying life in a modern, dynamic city.

We have already discussed this topic in detail in a comprehensive article about the pros and cons of buying property in Dubai published on the New Way website. That article explains all the major benefits of owning property in Dubai.

Because of advantages such as no income tax, stable currency, and well-managed inflation, many people today are interested in buying homes in Dubai on installments. Below is a table summarizing the main available plans and their specific conditions.

Types of Installment-Based Property Purchase Plans in Dubai

Buying an apartment in Dubai on installments is an excellent option for those who wish to live in Dubai but are unable to pay the full amount upfront. There are several options available for installment-based property purchases in the UAE.

The choice of plan depends on the type of project, the developer, repayment flexibility, and the buyer’s financial capacity at the start of the agreement. There are four main installment plans in Dubai real estate, each of which will be explained in detail below.

1- First Method: Post-Handover Payment Plan

One of the available options for buying a property in Dubai on installments is the post-handover payment plan. This is a popular choice, especially for those looking to buy villas in Dubai. As the name suggests, property handover occurs after completing the agreed payment schedule. Based on the mutual agreement between the buyer and the developer, payments are typically divided over a period of 3 to 10 years.

This method benefits both investors and developers. It allows investors to acquire property ownership without paying the full amount upfront. However, it’s important to note that the buyer must pay an initial percentage of the property’s total value at the start — this percentage is determined based on the terms agreed upon by both parties.

2- Second Method: 10/90 Payment Plan

The 10/90 payment plan is another popular method for buying property in installments in the UAE. Under this plan, the buyer pays 10% of the property’s total value upfront, and the remaining 90% is paid according to the agreed schedule. This fair and flexible payment structure has become a favorite among investors, including those looking to buy hotels in Dubai.

3- Third Method: Payment During Construction or Upon Handover

Unlike the previous plan, where you pay 10% upfront, this method offers various flexible installment ratios, making investing in Dubai even easier. Depending on the agreement, payments can follow ratios like 50/50, 30/70, or 40/60, spread over a defined period before the property handover.

In this approach, payments are generally made in two stages:

• During the construction phase
• At the time of handover

A key advantage of this plan is that buyers can apply for a mortgage loan to help cover the remaining balance, making repayment more manageable.

4- Fourth Method: Rent-to-Own (Becoming a Homeowner)

The rent-to-own plan is another convenient option for buying property in Dubai on installments, making it easier to become a homeowner in one of the most desirable cities in the Middle East. In this plan, the developer leases the property to the buyer under a rent agreement. After all installments have been paid according to the agreed terms, full ownership of the property is transferred to the buyer.

The payment amount and duration are determined in advance. Since the upfront amount is added to the total rent, monthly payments might be slightly higher. It’s also worth noting that buyers can pay the remaining balance through a mortgage or dedicated financing plan if desired.

“The real estate market in Dubai has gained popularity in the last couple of years. Investors from all around the globe find their interest in the United Arab Emirates. The foremost reason is that buying property in Dubai on installments would become easier.“

Source: dujarealtors

Overview of Installment Property Purchase Conditions in Dubai

• Down Payment: The initial payment depends on the type of project, the developer, and the reputation or privileges of the real estate agent working with the developer.
• Repayment Period: Typically ranges between 2 to 7 years.
• Golden Visa: By paying just 20% of the property’s value, you can obtain a UAE Golden Visa within 48 hours.
• UAE Residency: With an installment-based property purchase, you can receive a renewable 2 to 10-year residence permit in the UAE.
• Work Permit: Once you receive the Golden Visa, both you and your family are legally permitted to live and work in the UAE.

Advantages of Buying Property on Installments in Dubai

Some of the key benefits of purchasing property through installment plans in Dubai include:

• One of the easiest ways to become a homeowner in one of the best cities in the Middle East.
• Provides an opportunity for those who cannot pay the full amount upfront to buy property conveniently through installments.
• Lower investment risk.
• Favorable business and investment policies in Dubai.
• Flexible and convenient payment timelines.
• Increase in the value of apartments and properties in Dubai over time.
• Reduced financial pressure, as payments are spread over time.
• Enhanced purchasing power, allowing you to choose a more luxurious property in a prime location.
• One of the biggest advantages of investing in Dubai real estate is the absence of personal income tax, which allows investors to retain their full profits.
• In Dubai, you can own a property easily with a small down payment and long-term installment plan — no need for full upfront cash payment.
• Investing in Dubai property also enables you to obtain residence permits for your spouse, children, and even parents simultaneously.

Disadvantages of Buying Property on Installments in Dubai

Some potential drawbacks of buying property on installments in Dubai include:

• Developer-Related Issues: If the developer fails to fulfill their obligations, you may face delays or complications in property handover or title deed registration.
• Ownership Transfer Restrictions: In some contracts, transferring ownership to a third party is not allowed until all installments have been fully paid.
• Economic Conditions: Market fluctuations may affect both your repayment capability and property value over time.

Pre-Construction Property Purchase Regulations for Buyers and Developers in Dubai

Before buying property in Dubai, it’s crucial to understand the relevant laws and regulations. If this is your first time investing in Dubai’s real estate market, familiarizing yourself with these rules will help you make informed decisions and take advantage of the city’s high-profit investment opportunities.

Property Purchase Regulations in the UAE for Off-Plan Developers

• RERA Regulations and Registration: Developers selling off-plan properties must register with the Dubai Land Department (DLD). This registration process includes a thorough financial assessment of the developer and a review of their past projects. Buyers should only purchase properties from developers approved by DLD to minimize potential risks.
• Online Contract Platform: This digital system is used to register and track property sales contracts. It provides buyers with complete access to project details, payment schedules, and all related legal documents.
• Escrow Accounts: The Dubai Land Department, through its approved financial institutions, opens escrow accounts to protect investors’ funds.
• Payment Plans: Payment methods must be clearly outlined in the contract, including exact payment dates, amounts, and the total number of installments required for full payment.
• Ownership Transfer: Upon project completion, developers must obtain a DLD certificate to transfer property ownership to buyers. This process must be completely transparent and fully compliant with all regulations.
• Consumer Rights: Buyers have the right to report any misconduct or non-compliance by developers to the DLD (Dubai Land Department).
• Transparency and Disclosure: Developers are required to provide buyers with complete and accurate project details, including architectural plans, technical specifications, construction permits, and company history.
• Quality Assurance: Projects are inspected by qualified engineers to ensure they meet the highest international construction standards and quality benchmarks.

Property Purchase Regulations in Dubai for Off-Plan Buyers

• Down Payment: To pre-purchase a home in Dubai, buyers must pay the initial down payment specified by the developer.
• Contract Duration: If the project ownership is not transferred to the buyer within the agreed timeframe, buyers have the legal right to file a complaint against the developer. However, possession cannot be claimed before the completion date.
• Contract Commitment: If buyers delay their installment payments, the developer has the right to terminate the contract as per the agreement terms.

Minimum Down Payment Required for Buying Property on Installments in Dubai

The minimum amount required for purchasing a property on installments in Dubai varies depending on the project. Generally, expatriates must pay between 20% to 25% of the property value as a down payment for properties valued under 5 million AED. For example, purchasing a property worth 2,000,000 AED requires an initial payment between 400,000 to 450,000 AED

As of June 14, 2025, the minimum price to buy a home in Dubai is around $270,000 USD. For more details, visit the article Cheapest Homes in Dubai on our website.

Visa Conditions for Buying Property on Installments in Dubai

Thanks to the new regulations approved by the United Arab Emirates, visas are now granted to foreign property owners under specific conditions. Once you select a property and enter the UAE with a tourist visa, ownership is transferred to your name, allowing you to apply for residency in Dubai through property purchase.

The residence visa is typically issued within two weeks, provided that the following requirements are met:

• The property must be purchased in one of the UAE’s designated freehold areas, such as Dubai.
• The minimum value of the purchased property must be 1 million AED

Key Factors Affecting Installment Property Purchases in the UAE

• Property size and total built-up area.
• Neighborhood location, facilities, and accessibility.

Required Documents for Buying a Property on Installments in Dubai

The documents needed to purchase a property on installments in Dubai are divided into two categories. First, there are the documents required for entering Dubai and starting the property purchase process, and second, the documents needed for title deed registration. It’s important to note that Dubai’s property purchase laws may change each year, which can also affect the list of required documents. Some of the key documents include:

• Valid visa
• Passport
• Health certificate
• Three personal photos
• Health insurance documents
• Proof of income and financial capability
• Signed purchase agreement between buyer and seller

Installment Payment Conditions for Different Buyer Groups in Dubai

To qualify for buying a home in Dubai through installments, certain personal and financial requirements must be met. Below are the main conditions for different buyer categories:

Group 1: Individuals Holding UAE Residency

For UAE residents, buying a property on installments typically involves opening a bank account, providing the necessary documents to the bank, and obtaining a checkbook before proceeding to finalize the purchase with a real estate consultant. Some construction companies require buyers to pay an initial 10% to 15% of the total property value upfront, with the remaining balance payable in installments every 3 or 6 months.

Group 2: Individuals Without UAE Residency

This group includes foreign investors who do not currently hold UAE residency. For example, such buyers can take possession of a property valued at a minimum of 750,000 AED by making an initial payment of 375,000 AED and then pay the remaining balance through scheduled installments.

Can You Transfer the Installment Plan of a Property in Dubai to a New Buyer?

Yes, it is possible to transfer your property installment plan in Dubai to a new buyer, but this process requires obtaining a No Objection Certificate (NOC) from the developer and completing the necessary legal procedures. Here are the main steps involved in the process:

1. Obtaining the NOC: The seller must receive confirmation from the developer stating that there are no outstanding payments or pending fees and that the transfer is approved. Once both parties agree on the price and terms, the official ownership transfer process begins.
2. Transfer Fees and Taxes: The transfer fee is approximately 4% of the property’s total value and is paid to the Dubai Land Department (DLD).
3. Mortgage Transfer: If a mortgage exists, coordination with the bank is required to either transfer or settle the loan.
4. Property Registration: After completing all steps, ownership transfer must be registered with the DLD’s property registry.
5. Ownership Verification: Ensure that the property’s legal status is verified and that there are no unpaid liabilities.
6. Sale and Purchase Agreement: The installment-based sale contract in Dubai must be signed by both the buyer and seller.
7. Payment of Fees: All transfer fees and applicable taxes must be settled in full.

10 Common Mistakes When Buying Property on Installments in Dubai

1. Poor Budget Planning: Ignoring additional costs such as registration, commission, mortgage, and maintenance fees.
2. Insufficient Due Diligence: Failing to verify the developer’s credibility and project status.
3. Neglecting the Contract: Overlooking critical clauses and payment conditions in the agreement.
4. Unawareness of Payment Schedule: Not understanding penalties for delayed payments or potential changes in contract terms.
5. Skipping Property Inspection: Relying solely on promotional photos without physically visiting the property.
6. Hidden Costs: Underestimating service charges, maintenance expenses, and unexpected post-purchase costs.
7. Ignoring Market Trends: Investing without analyzing market performance and potential risks.
8. Emotional Decisions: Making impulsive buying decisions instead of rational, informed ones.
9. Choosing the Wrong Location: Selecting an area without considering its development potential, accessibility, and infrastructure.
10. Not Consulting Experts: Avoiding professional advice from legal, financial, or real estate experts.

Final Thoughts on Buying a Property on Installments in Dubai

In this comprehensive article from New Way (Dubai property search platform), we provided detailed insights about buying property in Dubai on installments. By choosing this flexible purchase option, you can own a modern home in one of the most luxurious and dynamic cities in the Middle East, equipped with world-class amenities.

If you need further information, you can contact our real estate consultants through the communication channels listed on our website and take advantage of our free consultation services.

Frequently Asked Questions About Buying a Property on Installments in Dubai