What are the different types of payment plans available for buying property in Dubai?

Different types of payment plans available for buying property in Dubai

What are the different types of payment plans available for buying property in Dubai?

Dubai, the dazzling gem of the United Arab Emirates, has long been a global hub for real estate investment. With its stunning skyline, opulent lifestyles, and tax-friendly environment, it’s no wonder that investors from around the world are eager to own a piece of this urban paradise. However, before embarking on your property acquisition journey in Dubai, it’s crucial to understand the myriad payment plans available. In this comprehensive guide, we’ll delve into the different types of payment plans that can pave the way to your dream property in this thriving metropolis.

Cash Payment Plans

For those seeking the fastest route to property ownership, cash payments are the golden ticket. This option allows you to purchase a property outright with your own funds, bypassing the need for mortgages or financing. It’s a swift and hassle-free approach, ideal for individuals with substantial liquidity.

Advantages of Cash Payment Plans:

  • Speed: Instant property ownership.
  • No Interest: No interest charges or financing costs.
  • Negotiation Power: Stronger bargaining position with sellers.
  • Minimal Documentation: Fewer paperwork requirements.
Most Common Payment Plans for Buying a Property in Dubai

Mortgage Payment Plans

Mortgages have become increasingly popular among property buyers in Dubai. This payment plan involves borrowing money from a financial institution to purchase a property, with the property itself serving as collateral.

Key Features of Mortgage Payment Plans:

  • Down Payment: Typically, a down payment of 20-25% of the property’s value is required.
  • Interest Rates: Interest rates can vary but are generally competitive.
  • Loan Tenure: Dubai offers extended loan tenures, often up to 25 years.
  • Eligibility: Lenders evaluate your creditworthiness before approval.

Post-Handover Payment Plans

Post-handover payment plans are a unique offering in Dubai’s real estate market. With this approach, you secure a property with a modest initial payment and then make instalment payments after the property is handed over to you.

Benefits of Post-Handover Payment Plans:

  • Lower Initial Investment: Requires a smaller upfront payment.
  • Payment Flexibility: Allows for staggered payments over a specified period.
  • Income Protection: Ideal for investors who anticipate future income growth.

Construction-Linked Payment Plans

In construction-linked payment plans, payments are directly correlated with the construction progress of the property. This method is commonly used for off-plan properties and provides transparency and security for buyers.

Notable Features of Construction-Linked Payment Plans:

  • Structured Payments: Payments are linked to construction milestones.
  • Security: Transparency ensures your payments align with construction progress.
  • Ideal for Off-Plan: Commonly used for properties still in the development phase.

Rent-to-Own Payment Plans

Rent-to-own schemes offer a distinctive path to property ownership. In this arrangement, a portion of your rent payments is set aside as a down payment, gradually enabling you to purchase the property.

Advantages of Rent-to-Own Payment Plans:

  • Low Initial Cost: Requires a smaller upfront payment.
  • Test Drive: Live in the property before committing to ownership.
  • Equity Building: Gradually accumulate equity through rent payments.
  • Flexibility: Option to purchase or walk away at the end of the lease.
Most Common Payment Plans for Buying a Property in Dubai

Flexible Payment Plans

Buy your dream property in Dubai with ease through the eMortgage convenient payment plan. Our payment plan allows buyers to pay in instalments until the property is handed over to them for a stress-free purchasing experience.

Our payment plan is simple: a buyer pays a certain percentage of the property’s value in instalments, and the remaining balance is due upon handover. The specific ratio of instalments may vary depending on the builder, but common ratios include 10:90, 20:80, 40:60, 50:50, 60:40, 70:30, and 25:75. This payment plan is ideal for buyers who prefer a manageable and structured approach to property ownership.

Advantages of Flexible Payment Plans:

  • Affordable: Allows buyers to break down the cost into more manageable payments.
  • Structured: Offers clear and defined payments over a specific period.
  • More Time: Longer time frame for full payment, making it easier on finances


In conclusion, the diverse range of payment plans available in Dubai’s real estate market serves to cater to the varying needs and financial capacities of investors. While choosing the right payment plan, it’s essential to evaluate your financial standing, long-term investment goals, and risk appetite.

eMortgage, a leading real estate firm in the UAE, can provide you with expert guidance and support in navigating these options, ensuring that your journey towards owning your dream property in Dubai is as smooth and rewarding as possible. Remember, the right payment plan is a crucial step towards successful real estate investment in Dubai, so choose wisely and engage professional help whenever necessary.