Real estate in Dubai with instalment plans: how to buy directly from the developer

Real estate in Dubai with instalment plans: how to buy directly from the developer

05.01.2023 (updated 05.31.2023)

  • AX Blog
  • Real estate in Dubai with instalment plans: how to buy directly from the developer

Buying an apartment in instalments in Dubai is a cost-efficient way of acquiring a prestigious, high-quality property without paying the entire amount at once or having to apply to the banks for a mortgage. UAE developers offer numerous options for payment schedules, making it possible to plan your purchase on convenient terms. In this post, we’ll discuss how to buy an apartment in Dubai with an instalment plan, what payment schedules are available, whether it’s possible to buy real estate in the UAE without a down payment and how to apply for a resident visa if you’re paying for your residence in instalments over the next few years.


Instalment plans for off-plan residential projects in Dubai

Various payment schedules are offered for off-plan properties in Dubai, such as:

  • 90/10
  • 80/20
  • 70/30
  • 60/40
  • 50/50

The first number refers to the share of the property value paid during the construction and the second number is the balance paid after the commissioning.Some developers offer “reverse” payment schedules, such as 40/60, 30/70 and 20/80, which means that you pay most of the amount after the building is completed. This could be particularly attractive to buyers concerned with conventional risks associated with off-plan properties, i.e., schedule delays and suspended construction.

The latter is not relevant for Dubai. In the United Arab Emirates, investors’ monies are held in a protected escrow account. The developers may only access these funds after the construction operations are completed. A deferral of the deadlines is theoretically possible but doesn’t happen often. Leading developers value their business reputation and have sufficient experience to design a realistic work plan and strictly adhere to it. Small delays are possible in the case of young and little-known construction companies that are only beginning to earn a reputation in the local market. The “reverse” payment schedule mitigates even the lowest risks for the buyer.

It should be mentioned that some instalment plans enable the buyer to pay for their purchased residence over several months or years after commissioning. These are rare and extremely beneficial offers that are far more convenient than a mortgage loan. If you’re interested in buying interest-free real estate in Dubai in 2023 on bargain terms, look for the post-handover payment plans. You can find out more about these schedules, properties and the developers offering them from AX CAPITAL experts.

Is a down payment mandatory?

Yes. It’s impossible to purchase real estate in the UAE without a down payment. Under an instalment plan, you pay a certain percentage of the value to reserve a property. The down payment is usually 10-20% plus a four percent registration fee charged by the Dubai Land Department (DLD) in addition to the purchase amount. Afterwards, the payments are scheduled throughout the entire construction period of several years. The number of payments and the amounts may vary depending on the specific plan, developer and residential project.

Examples of instalment plans from Dubai developers

Let’s take a look at a few of the actual instalment plans for off-plan residential complexes in the city from leading developers.

Biltmore Residences Sufouh

This high-end new development by the world-famous hotel brand Biltmore is a 44-storey tower in an Art Deco style overlooking the Persian Gulf. The premium one- to three-bedroom apartments cost upwards of AED 1.63 million (USD 444,000). The payment schedule is as follows:

  • 10% – down payment
  • 40% – within six payments of 5–10% during construction
  • 10% – upon commissioning in the first quarter of 2025
  • 40% – over three years after handover

The Ritz-Carlton Residences

This mega project by the MAG Group and Marriott International comprises ultra-luxury apartments, penthouses and mansions. The waterfront complex attracts investors with its unique spa facilities, Michelin restaurant and upscale hotel services. The prices start at AED 5.8 million (USD 1.58 million).

The instalment plan is 60/40 with a 10% down payment.

Marina Living

The 19-storey high-rise located in the prestigious Dubai Marina boasts an infinity pool, sports courts and recreation areas. One- and two-bedroom apartments worth upwards of AED 1.37 million (USD 373,000) are available for purchase.

The payment schedule is 60/40, with a down payment of 5%. percent

Keturah Reserve

This luxurious eco-friendly residential project by MAG comprises one- to four-bedroom apartments and upscale townhouses in a gated community with extensive facilities. With everything from an art school, sensory attractions and a yoga studio to a spa and a business centre, the complex offers unique opportunities for sports, personal development, a healthy lifestyle, work and raising children. The prices start at AED 2.73 million (USD 743,500).

The instalment plan is 60/40 with a 15% down payment.

Harbour Lights

The high-rise tower from Damac features an exclusive design, a floating pool and stunning views of the Persian Gulf in the emerging district of Maritime City, which is why local premium waterfront apartments sell at half the market price, starting at AED 1.32 million (USD 359,500).

The payment schedule is 80/20 with a 20% down payment.

UAE residence permit in case of instalment buying

You can apply for a residence visa in Dubai if you purchase real estate worth AED 750,000 (USD 204,000) or more. However, this amount needs to be paid in full and out of your pocket. In other words, you only become eligible for a visa after the payments you have made reach the required threshold. Instalment plans are generally offered for off-plan homes which is quite convenient as, by the time the building is commissioned, you’ll receive both the keys and the residence permit. The same applies to Golden Visas, except that the required minimum amount is higher.

Return on investment

Buying an off-plan property in the UAE is a brilliant investment opportunity. The price at the initial stages of construction may be 20-30% lower than upon the apartment or villa completion. Besides, the consistent growth of the residential property value in Dubai is objectively a long-term trend. In 2022, it rose by 17% and 23% for off-plan apartments and villas, respectively. This year, the value of local real estate may also increase by 5-46% according to different estimates. The average expected growth is 13-15%.

A property bought under an instalment plan can also be leased. If you have chosen a post-handover option, the rental payments will cover the instalments once the construction is completed and will subsequently generate a steady income of 5-8% annually.

Applying for an instalment plan on a Dubai apartment

Please contact AX CAPITAL, a real estate agency in Dubai, to receive the best instalment plans from UAE’s leading developers. We deal directly with construction companies and can select a property and a payment schedule to meet all your expectations. You can sign up for an instalment plan remotely without having to come to Dubai or find a representative there. We’ll manage the closure and support you through all stages of the transaction.

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