5 Steps to Buy an Apartment in Dubai on Installments While Living Abroad
Dubai is one of the top global destinations for real estate investment, thanks to its advanced infrastructure, promising investment opportunities, and government incentives for foreign investors. For many people living outside the UAE, the idea of buying an apartment in Dubai on installments may seem complex. However, with the right steps and suitable plans, this can be achieved with ease. In this article, we will outline 5 simple and effective steps to help you achieve your dream of owning an apartment in Dubai on installments while living abroad.
Step 1: Research Apartments in Dubai on Installments That Suit Your Needs
Buying an apartment in Dubai on installments always starts with thorough research. Dubai offers a wide range of residential projects to meet various needs, whether you’re looking for a home to live in or for investment purposes. During your research, keep the following points in mind:
- Ideal Location: Choose an area that aligns with your goals, such as proximity to transportation, essential services, or investment zones. Popular areas include Dubai Marina, Downtown Dubai, and Mohammed Bin Rashid City.
- Reputable Developer: Ensure you work with a well-known and reputable developer to guarantee construction quality.
- Payment Options: Check the available payment plans and choose a flexible installment plan that fits your budget.
Tip: Use trusted real estate platforms to search for apartments in Dubai on installments. These platforms provide comprehensive details about projects, prices, and payment plans.
Step 2: Verify the Legal Requirements for Buying an Apartment While Living Abroad
Before proceeding with the purchase of an apartment in Dubai on installments, you need to understand the legal requirements governing foreign ownership. Dubai allows foreigners to own property in designated freehold areas, but there are certain procedures to follow:
- Valid Passport: Ensure your passport is valid.
- Investor Visa (Optional): If you plan to reside in Dubai, you can apply for an investor visa after purchasing the property.
- Official Contracts: Ensure all contracts are signed with the developer or an authorized real estate agent.
Step 3: Choose a Suitable Installment Plan
One of the reasons buying apartments in Dubai on installments is attractive is the availability of flexible payment plans that suit most budgets. There are several types of installment plans to choose from:
- Developer Installments: Developers often provide direct payment plans without requiring bank financing.
- Bank Financing: You can get a mortgage from UAE banks, which offer relatively low interest rates and long-term installment plans.
- Post-Handover Payment Plans: Some projects allow you to pay a portion of the amount after receiving the apartment, offering greater flexibility.
Example: If you’re buying an apartment worth AED 1,000,000, you may be required to make a 10% down payment and pay the remaining amount in convenient installments over several years.
Step 4: Complete the Procedures Remotely
Living outside the UAE doesn’t mean you need to travel to complete the process of buying an apartment in Dubai on installments. Dubai offers electronic solutions that make it possible to complete all procedures remotely, including:
- Online Communication with the Developer: Most real estate companies provide modern communication tools like video calls and email.
- Electronic Signing: You can sign contracts electronically using certified digital signatures.
- Bank Transfers: Initial payments can be made via international bank transfers.
- Opening a Bank Account in Dubai (Optional): You may want to open a bank account in the UAE to facilitate installment payments and monitor financial transactions.
Tip: Ensure you work with an authorized broker or developer to guarantee the safety of legal and financial transactions.
Step 5: Managing the Property After Purchase
After completing the process of buying an apartment in Dubai on installments, you’ll need a solid plan to manage the property. If you intend to use the apartment as an investment, here are some options:
- Renting Out the Apartment: You can rent out the apartment and benefit from rental income, which is among the highest globally.
- Hiring a Property Management Company: If you don’t live in Dubai, you can hire a specialized company to manage the property, including maintenance and leasing.
- Keeping Up with Installments: Make sure to adhere to the payment schedule to avoid any penalties.
Key Facts:
- The return on real estate investment in Dubai ranges between 5-8% annually.
- Dubai has strict laws to protect both property owners and tenants, making real estate investment secure.
Additional Tips to Simplify Buying an Apartment in Dubai on Installments While Living Abroad
- Verify Credibility: Check the reputation of the developer and the project through reviews or recommendations.
- Stay Updated on the Market: Monitor Dubai’s real estate prices to identify the best opportunities.
- Consult an Expert: Seek advice from a real estate consultant or a specialized lawyer for professional guidance.
Buying an apartment in Dubai on installments while living abroad has become easier than ever, thanks to the significant facilities provided by the government and real estate developers. Whether you’re looking for an investment or a luxurious place to live, Dubai offers diverse options tailored to your needs. By following the steps outlined above, you can own an apartment in one of the world’s most advanced and attractive cities.
Frequently Asked Questions (FAQ)
1. Can foreigners buy apartments in Dubai in installments?
Yes, foreigners can buy apartments in Dubai in installments, especially in freehold areas that allow foreign investors to fully own the properties.
2. What are the freehold areas in Dubai?
Some popular freehold areas include Dubai Marina, Downtown Dubai, Palm Jumeirah, and Mohammed Bin Rashid City.
3. What is the minimum down payment when buying an apartment in Dubai in installments?
The down payment often starts from 10% to 20% of the property value, depending on the developer and payment plan.
4. What are the available installment plans?
Instalment plans vary by developer, but they typically extend from 3 to 10 years, and some projects offer post-handover installment plans.
5. Can I buy an apartment in Dubai in installments if I live outside the UAE?
Yes, you can purchase an apartment in installments while outside the UAE, as Dubai offers electronic services to facilitate remote procedures.
6. What documents are required to purchase an apartment in Dubai in installments?
Valid passport
Copy of visa (if applicable)
Proof of income or bank statement (in the case of real estate financing)
7. Can I obtain a mortgage if I am not a resident of Dubai?
Yes, many banks in the UAE offer mortgage financing to both residents and non-residents, but the terms vary depending on the bank.
8. What are the benefits of investing in Dubai apartments in installments?
High rental returns
Property value increases over time
Flexible payment options
Opportunities to reside in one of the world’s most attractive cities.
9. Are there additional fees when purchasing an apartment in Dubai in installments?
Yes, additional fees include:
Dubai Land Department registration fees (4% of the property value)
Real estate agency fees (approximately 2%)
Annual maintenance fees (depending on the project).
10. Do I need Dubai residency to purchase a property in installments?
No, you do not need to be a Dubai resident to purchase a property, as foreign investors are allowed to own real estate without a residency permit.
11. What are the advantages of installment plans offered by real estate developers?
Flexible payment plans with no interest.
No need for bank financing.
Post-handover installment plans.
12. What are the best areas to buy apartments in Dubai in installments?
Dubai Marina: Ideal for investment and rent.
Downtown Dubai: Close to Burj Khalifa and Dubai Mall.
Palm Jumeirah: For families seeking privacy and luxury.
13. Can I rent out an apartment after purchasing it in installments?
Yes, you can rent out the apartment even if the installments have not been completed. This allows you to cover part of the installments through rental income.
14. Is there a difference between buying a ready apartment and an apartment under construction in installments?
Ready apartments: These require a higher down payment, but are available for immediate occupancy or rent.
Off-plan apartments: These are often cheaper and come with flexible installment plans, but you must wait until construction is complete.
15. What are the steps to buying an apartment in Dubai in installments?
Find a suitable apartment.
Choose a payment plan.
Sign the contract with the developer.
Pay the down payment.
Complete the installments.
16. What are the investment returns on apartments in Dubai?
Rental returns on apartments in Dubai range between 5% and 8% annually, depending on the location and property type.
17. Can I complete the legal procedures remotely?
Yes, Dubai offers contract signing and electronic money transfer services to facilitate remote property purchases.
18. What are the steps to register a property in Dubai?
Sign the sales contract with the developer.
Pay the registration fee (4%).
Register the property with the Land Department.
19. Does Dubai provide property management services?
Yes, you can use property management companies to rent and maintain the apartment while you are outside the UAE.
20. What is the most important advice for buying an apartment in Dubai on installments?
Choose a reputable real estate developer and carefully review all contracts and documents to ensure you secure the best deal.
