Real Estate in the UAE on Installment Plans: How to Buy an Apartment During the Construction Phase

For years, the UAE has remained one of the most sought-after locations for foreign buyers looking to purchase real estate. This is due not only to the country’s attractive tax policies but also to flexible payment terms and the ability to spread payments over time. In practice, real estate purchases in the UAE are increasingly made not with a single lump-sum payment, but through phased installments throughout the project’s construction. This is precisely why foreign investors are increasingly viewing the option to buy an apartment in Dubai on an installment plan as a rational and well-considered investment.

What Is an Installment Plan for Buying Real Estate in Dubai

An installment plan in Dubai is a standard method for purchasing off-plan properties—that is, properties that are currently under construction. This option is offered directly by developers in virtually all new residential projects.

It is important to note that in the vast majority of cases, this involves an interest-free installment plan. The buyer pays the cost of the property in installments according to a fixed schedule, with no price increases or hidden interest charges. In other words, unlike the traditional bank loan scheme, this arrangement does not involve any financial overpayments. This is standard practice in the UAE market, not a temporary marketing offer.

Apartments available on an installment plan are accessible to both investors and buyers looking for a home to live in. Moreover, the vast majority of developers in Dubai and other emirates offer this payment plan.

How to Read Payment Plans and Understand the Payment Structure

When purchasing a property in Dubai, buyers encounter payment plans in the 50/50, 60/40, or 70/30 formats. These figures reflect the distribution of payments between the construction phase and the handover of the keys.

The first part of the plan indicates what percentage of the cost must be paid before construction is completed, while the second part specifies the amount the buyer pays upon receiving the keys. The final payment is always tied to the actual completion of the project. This means that if the handover date is postponed, the final payment is also postponed, which reduces risks.

Regardless of the payment plan chosen, an initial down payment is required to sign the contract. As a rule, it amounts to about 20% of the property’s cost. In some projects, offers with an initial down payment of 10% or even 5% are available, though this depends on the stage of construction and the developers’ policies.

What Is a Post-Handover Payment Plan?

It’s worth mentioning the payment plan that begins after receiving the keys, known as the post-handover scheme. In this case, a portion of the total amount is paid over several years following the project’s completion.

Such options are rare and not offered by all developers, and they are particularly appealing to buyers who plan to rent out their apartments immediately after occupancy. In this case, rental income partially offsets the payments.

An example of a project with this payment structure is Sakura Gardens in the Wadi Al Safa 2 area of Dubai. This project allows buyers to pay 35% of the apartment’s cost over 35 months after the property is commissioned, meaning post-handover payments amount to just 1% per month. This makes the property an excellent option for a long-term investment strategy. 

Thanks to our constant monitoring of the market, our agency is well-versed in projects offering post-handover installment plans. This allows us to select and recommend to our clients the most attractive properties with favorable payment terms, including projects that are not always listed in public sources.

What Properties Are Available for Installment Plans

Any off-plan properties in Dubai are available for installment plans. These can include studios, apartments in residential complexes with amenities, townhouses, or villas in gated luxury communities. The property class, neighborhood, and project type do not limit the possibility of installment plans—the key factor is the stage of construction.

Properties under construction are most often offered at a more attractive price than completed options. At the same time, the buyer locks in the price at the start of the project and pays it in installments, according to a convenient schedule.

What to Look for When Buying Real Estate on Installments

When selecting a suitable property, it is important to consider several key points:

• the developer’s reputation and experience;

• the stage of construction and the project’s completion timeline;

• the structure of the payment plan and the size of the down payment;

• the presence or absence of post-handover payments;

• the terms for reselling the property before construction is completed;

• additional costs, including registration fees.

This comprehensive approach to selecting a property allows you to evaluate not only the convenience of the payment plan but also its prospects in terms of price appreciation and liquidity.

Conclusion

Interest-free installment plans in Dubai are far from an exception; they are the norm in the off-plan market. Most developers offer this option, and the payment schedule is tailored to the actual stages of construction. For foreign buyers, this makes purchasing a home in the UAE straightforward and predictable.

Buying an apartment on an installment plan in Dubai allows you to enter the market without a sudden financial burden, lock in the price, and choose a strategy—from personal residence to investment income. That is precisely why this investment option remains one of the most sought-after formats in the Dubai real estate market.