How to invest in Dubai real estate: installments and mortgages for foreigners

Real estate in Dubai for foreign citizens

In Dubai, it is possible for foreigners to purchase real estate with the help of mortgage loans, which are provided by local financial institutions. In addition to this, there is a new option to make installments, which requires an initial payment of only 10% of the value of the object. In this article, the experts of the international real estate agency will tell you what conditions must be met for Russian investors to be able to take advantage of installments in Dubai, as well as when this decision will be the most profitable.

Conditions of purchase by installments

The terms of buying an apartment in installments in Dubai can vary greatly depending on the construction company and the type of property chosen - it can be a new building or a ready-made object. Two main types of installment schemes are common in the market:

• Lease with an option to repurchase(rent-to-own). This scheme is available exclusively for ready-made housing. Under this scheme, the parties enter into a contract for a fixed term, and the annual rent is usually higher than average market rates. As soon as the tenants pay the full amount, they take possession of the property.
• Installment payment for new buildingsThe first part of the payment (50% to 70%) takes place during construction, while the balance is paid upon completion of the design. The first part of the payment (50% to 70%) is made during construction, while the balance is paid upon completion of the design. This scheme is the most popular among buyers.

Example of payment structure

For example, in one of the new developments in Jumeirah Village Circle, the payment structure is as follows:

• 20% on booking
• 10% - two months after booking
• 10% - four months after booking
• 5% - when 20% of project readiness is reached
• 5% - upon reaching 30% of project readiness
• 5% - upon reaching 40% of project readiness
• 5% - when 50% of project readiness is reached
• 5% - when 60% of project readiness is reached
• 5% - when 70% of project readiness is reached
• 30% - upon completion of construction

Advantages of installment payments

Such phased payment allows investors to control the construction process and provides additional guarantees. But this does not mean that in Dubai there is a risk of non-compliance on the part of the developer. The market of new buildings in Dubai is strictly regulated: according to the current legislation, the developer is obliged to deposit a significant amount into an escrow account before the start of construction works. These funds can only be accessed when the account is opened after the project has reached 50% completion, which eliminates the possibility of delaying or stopping construction.

Clearance procedure

As far as the purchase process is concerned, most developers in Dubai offer their clients a variety of installment terms, and the process itself can be implemented very quickly. Investors interested in investing can take advantage of such offers with minimal costs nowadays. This system makes the purchase of real estate more affordable, allowing many to realize their dream of owning their own home in one of the fastest growing cities on the planet.

Buying real estate in Dubai

For all those who show interest in buying real estate in Dubai, it is enough to state their wishes to the developer's manager.

Conclusion

Concluding our article on the advantages of buying real estate in Dubai with installments and mortgages, I want to emphasize how exactly this real estate market opens new horizons for investors from Russia.

The variety of terms and payment schemes allows potential buyers to find the most suitable options based on their financial capabilities and plans.

Market flexibility

Existing installment options such asrent-to-ownand other schemes, demonstrate the flexibility and adaptability of the market to the needs of foreign investors. This, in turn, creates a sense of security and confidence that investments can not only provide comfortable housing, but also become a profitable asset in the future.

Safety and regulation

The importance of regulation and control by the Dubai authorities cannot be underestimated either. The importance of regulation and control by the Dubai authorities cannot be underestimated:

• Developers are required to provide guarantees for completion of construction.
• Minimizing risks for investors.
• Investors can follow the progress of the project.

The institution of escrow accounts and scrutiny of each stage of construction make the process more transparent and safer.

Combining installment and mortgage

Equally important is the possibility of combining installments with mortgage loans, which gives investors the opportunity to more flexibly distribute their financial flows. In addition, the possibility of obtaining a residence permit for the purchase of real estate in installments opens additional advantages for those who are interested in long-term stay in the UAE.

Results

As a result, Dubai is a unique real estate investment platform that continues to attract more and more foreign investors. The important aspects we have outlined make the process accessible, transparent and, importantly, profitable.

I hope you find this information useful and allow readers to make an informed choice when investing in the Dubai real estate market.