How to Buy Property in Dubai in Installments

Buying property in Dubai in installments. Conditions for installment payments registration for foreigners. Assistance in choosing real estate in the emirate.

An increasing number of foreigners regard the UAE real estate as investment property. Dubai remains one the most attractive places to invest. Foreigners can choose property for sale in Emaar Beachfront, as well as in any other popular city area, and purchase it not only for cash. If you don’t have enough money for the whole transaction, you can use the installment plan offered by the developer and avoid the commission interest expenses. This profitable investment arrangement allows not only to become a real estate owner in one of the most prestigious cities in the world, but also to get a residence permit before you finish paying for your real estate. Consider the details below.

Types of Installments on Real Estate in Dubai

In Dubai, 2 kinds of installments are actively used, differing in the amount of the downpayment and the payment schedule:

  • Installment plan for finished housing. In fact, it resembles a long-term lease agreement. The interested person gets the opportunity to become the owner when he or she finishes paying for the property. However, the renting prices are higher in this case than those for a similar property which is not offered by its developer.
  • Installment plan for under-construction (off-plan) housing. This is the most profitable arrangements, when 50 to 70% of the property price is to be paid during construction, and the rest it so be paid when the residential complex is put into operation. The payment schedule is set by the developer, usually the payments are divided evenly: you pay when a large-scale construction stage is completed.

It is important to know that such a transaction is safe for the buyer, because a special commissioning body checks if the property is ready for commissioning. Reports on the process issued by the developer are not enough for getting to the next stage. The arrangement is advantageous for all participants: the developer is interested in receiving further payments, and the investor can be sure that the stated construction deadlines will be met. In fact, the construction company carefully thoughts out the financing of each construction stage, and so delays in terms are unprofitable for it.

There are practically no development risks for buyers, since the developer’s activities are carefully controlled at the state level. To start any construction, the company should own the land plot where the construction will be carried out, and make a deposit to a bank account. This deposit is blocked until the end of half of the construction process. Thus, investors are insured against financial losses.

How is a Property Installment Plan Registered

Payment schedules are individual for each project. The payment schedule is chosen by the investor, taking into account the capital available. After approval, the developer submits the necessary documents to the buyer. Payments are made only via banks licensed by the Land Department. Banks transfer money to the developer only after checking the readiness of the object at the declared stage.

Installment can be combined with a mortgage loan. It is available for both ready-made facilities and off-plan properties. Most often, banks issue a mortgage loan when the construction is completed by at least 80%. At the same time, the maximum amount of payments for foreigners usually does not exceed 50% of the property price. This allows you to pay off the last installment payments using borrowed funds, if they do not exceed 50% of the apartment’s value.

Is It Possible to Obtain a Residence Visa when Purchasing Real Estate in Installments

Foreign real estate buyers can apply for a 3-year residence visa. In the UAE, this is an analogue of a residence permit. To do this, you need to pay at least half of purchased property’s price, and the amount must exceed $204,000. This arrangement is available for already commissioned properties. After obtaining a residence visa, the remaining 50% of the installments can be paid at the expense of your own funds or mortgage lending. If the property price exceeds $545,000, the investor can apply for a “golden visa” when he or she finishes paying for the property. This visa allows you to reside in Dubai for 10 years. A homeowner who obtained a residence visa can be a sponsor for his or her close relatives.

How to Get Profit From Real Estate Investment

Investments in off-plan property are potentially profitable. As the development approaches delivery, the cost per square meter steadily increases. Besides, Dubai’s real estate market is booming and value capitalization is seen across all real estate types. The most popular are waterfront apartments near the sea. 1-2 bedroom apartments are in demand as investment property, although lately there has been an increase in interest in premium properties. Wealthy buyers choose luxury villas and townhouses. If an investor purchases any real estate at the development stage, he or she can re-sell the property after it is commissioned at a notably higher price.


  • Installment plan is offered by most Dubai developers;
  • The initial payment for booking a property is 10% of its price;
  • Prior to construction completion, at least 50% of the property price is paid. It is advisable to check the exact payment amount with specific developers;
  • Installment plan for buying real estate can be combined with a mortgage for foreigners;
  • The installment plan does not limit the possibility of obtaining a residence visa. However, the property must be commissioned and the investor should have paid at least half of its price. At the same time, the amount of real estate investments must exceed the minimum threshold of $204,000.

Detailed information about real estate in Dubai and the conditions for its purchase for cash or in installments can be obtained on the official website

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