Is your cash flow limited, limiting you from buying a property in Dubai?
Properties with flexible payment plans will be the best option for you, as you can secure your property ownership while prioritizing lower upfront costs.
If you don’t know the available options with a 1 percent payment plan Dubai or are still new to that real estate term, in our blog post, we will explain all about the 1% payment plans in Dubai and the available projects with such plans.
What Is 1 Percent Payment Plan Dubai?
The 1 percent payment plan Dubai is a financing scheme where buyers make an initial down payment, followed by monthly installments of 1% of the property's total value. This structure enables purchasers to spread payments over several years, reducing the financial burden of a large lump-sum payment.
The low-payment plans allow buyers to manage expenses without overextending financially, making it the best option for families and investors.
How Does This Payment Plan Work?
Buyers start with a down payment, often around 20% of the property's price. Subsequent monthly payments are set at 1% of the total property value.
For example, for a property valued at AED 1 million, the buyer would pay AED 200,000 upfront, followed by monthly installments of AED 10,000. This arrangement continues until a significant portion of the property's cost is covered, with the remaining balance due upon completion or handover.
When The 1% Rule Works?
The 1% payment plan is particularly effective for buyers with steady income streams who prefer spreading payments over time.
It suits investors seeking to enter the Dubai real estate market without immediate substantial capital.
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When The 1% Rule Doesn’t Work?
The 1 percent payment plan Dubai may not be suitable for buyers lacking a stable income to meet monthly obligations.
It might also be less effective for those seeking immediate full ownership, as the extended payment period delays complete ownership until all payments are made.
Advantages Of 1 Percent Payment Plan Dubai
1. Affordability
The 1% payment plan lowers the entry barrier for property ownership, making it more affordable for individuals who might find large upfront payments challenging.
2. Cash Flow Management
Spreading payments over time allows buyers to manage their finances more effectively. This helps UAE residents to avoid the strain of substantial one-time payments.
3. Ownership Security
Buyers can secure property ownership earlier in the payment process, often obtaining ownership rights after paying a certain percentage of the total cost.
4. Reduces Financial Strain
Smaller and more manageable payments reduce financial stress for families. This enables buyers to invest without overextending their resources and cover their expenses without worries.
Here Are Some Alternatives To 1 Percent Payment Plan Dubai
1. Rent-to-Own Schemes
Rent-to-own agreements allow tenants to purchase the property they are renting. This can be done by paying a portion of the rent that contributes towards the purchase price.
2. Post-Handover Payment Plans
Post-handover plans are suitable for many investors who want to secure property ownership without paying the full amount. Investors pay a portion during construction and the remaining balance after the property is completed.
3. Mortgage Financing
Traditional home loans from banks are suitable options for residents who want to buy a home and do not have enough money ready. These loans enable buyers to finance their property purchase by repaying the loan over an agreed period with interest.
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11 Projects: What Properties Are 1% Payable in Dubai?
The Emirati offers several options with a 1 percent payment plan Dubai or less. Developers in Dubai offer this payment plant to encourage buyers and investors to buy a property in Dubai, enhancing the real estate market overall. Some of the projects with a 1 percent payment plan in Dubai offer luxurious living spaces and excellent investment opportunities, such as:
1. Damac Violet-3
Damac Violet-3 is a residential project designed to combine luxury and modernity; it has some properties with a 1% payment plan. The project enables easy access to Dubai's major business hubs and entertainment destinations.
Why Buy a Property in Damac Violet-3:
Flexible 1% payment plans.
Premium facilities.
Proximity to key areas in Dubai.
High-end interiors and a modern design.
2. Damac Violet-4
Damac Violet-4 elevates the concept of luxury living with a 1% payment plan option.
Why Buy a Property in Damac Violet-4:
Flexible 1% payment plans.
Vibrant community environment.
Variety of apartments.
Easy access to transport links.
3. Damac Island
Damac Island is a high-end residential development featuring waterfront villas and apartments with a 1 percent payment plan in Dubai.
Why Buy a Property in :
Flexible 1% payment plans.
Private waterfront living.
Exclusive access to luxurious amenities.
4. Bayz103
Bayz103 is a contemporary residential tower designed for urban professionals and families. It has some properties with a 1% payment plan Dubai.
Why Buy a Property in Bayz103:
Attractive pricing with flexible 1% payment plans.
The project features a fully equipped gym, swimming pool, and rooftop lounge.
Affordable luxury in a central location.
Modern amenities.
5. Elitez-3
Elitez-3 by Danube Properties offers affordable luxury apartments with flexible payment plans.
Why Buy a Property in Elitez-3:
Amenities include sports courts, health clubs, and jogging tracks.
Affordable pricing with top-notch amenities.
Located near schools, hospitals, and retail hubs.
6. Diamondz
Diamondz is another exceptional project by Danube Properties, featuring homes that prioritize comfort and innovation with flexible payment plans starting from 1%.
Why Buy a Property in Diamondz:
Attractive pricing with flexible 1% payment plans.
Integration of smart home features.
Focus on health and wellness amenities.
Easy access to transport and business centers.
7. Samana Resorts
Samana Resorts brings the concept of resort-style living to Dubai's residential market. These residences feature private pools, spa facilities, and landscaped gardens. All of these amenities and features besides flexible payment plans.
Why Buy a Property in Samana Resorts:
Flexible 1% payment plans.
Resort-inspired amenities for ultimate relaxation.
Unique investment opportunity with high rental yields.
8. Samana Manhattan
Inspired by New York's urban charm, Samana Manhattan features bold architecture and modern apartments in Dubai.
Why Buy a Property in Samana Manhattan:
Flexible 1% payment plans.
Chic urban living close to business hubs.
Innovative amenities, including co-working areas.
Stylish interiors with premium materials.
9. Samana Lake View
Samana Lake View offers breathtaking views of a serene lake, coupled with luxurious living spaces and flexible payment plans.
Why Buy a Property in Samana Lake View:
Flexible 1% payment plans.
Picturesque lake views.
Designed for relaxation and outdoor activities.
10. Reportage Village
Reportage Village is a family-oriented development in Dubai that focuses on creating a sense of community. The project features townhouses and villas with flexible payment plans starting from 1%.
Why Buy a Property in Reportage Village:
Family-friendly environment.
Variety of housing options.
Community-focused amenities.
11. Taormina Village
Taormina Village is inspired by the Mediterranean lifestyle, offering villas and townhouses with vibrant architecture and premium finishes.
Why Buy a Property in Taormina Village:
Flexible 1% payment plans.
Mediterranean-inspired design.
Private outdoor spaces for each unit.
Calculating The 1% Rule
To calculate the monthly payment under the 1% rule, you should first determine 1% of the property's total value. You can do that by multiplying the total cost by 0.01 to find the target monthly rent. The resulting amount will be your monthly installment after the initial down payment.
It's essential to consider the duration of the payments and any additional costs or fees associated with the property purchase.
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1% Payment Plan in Dubai with Roofs and Roots
Roofs & Roots Real Estate Agency in Dubai has a large team of experts who are aware of the available properties and have a 1% payment plan in the UAE. The team will provide many options that are suitable for your goals and budget to facilitate property ownership.
The more you wait, the fewer options remain! Contact us today for consultation.
FAQ
Can I buy flats for sale in Dubai in installments?
Yes, many developers offer installment payment plans with small monthly payments, such as the 1 percent payment plan Dubai.
How to buy a property in Dubai?
As a non-resident, you can purchase properties in designated freehold areas, search for a suitable property, choose the one that is most suitable to you and agree on terms with the seller, sign a contract, and register the property with the Dubai Land Department (DLD).
Are there cheap houses for sale in Dubai?
Yes, there are some affordable properties in areas like International City, Jumeirah Village Circle (JVC), and Dubai South. Most developers in Dubai also offer flexible payment plans to make housing more accessible.
What is the 1% rule in real estate investing?
In the world of real estate investment, the 1% rule can be explained as the property's monthly rental income should exceed 1% of its purchase price to be defined as a good investment.
Can the 1% rule also be used for down payments?
Yes, some developers use a "1% payment plan," where buyers pay 1% of the property value monthly.a
What happens if a property’s rent exceeds the 1% guideline?
If a property's rent exceeds the 1% guideline, it indicates a higher return on investment (ROI). The higher the percentage, the more profitable it will be for the investor.
How long does it typically take to pay off a property using the 1% rule?
Using the 1% payment plan, it can take about 8–10 years to pay off a property, depending on the down payment, total property cost, and any remaining balance at handover.
