The real estate market in Dubai continues to thrive, with investors and residents actively seeking residential and commercial units featuring comprehensive designs and facilities that meet diverse needs. Choosing the right payment method when purchasing property in Dubai is one of the most critical considerations for buyers. This article highlights the key payment methods available and essential details related to buying property in Dubai.
Key Payment Methods for Purchasing Property in Dubai
Explore the main payment options for buying property in Dubai to help you choose the best fit
Payment After Delivery
Payment after delivery is a popular option among those looking to own property in Dubai, leading to the development of numerous real estate projects offering this benefit. This payment plan allows buyers to pay the property value in installments after construction completion and handover, typically spanning between 3 to 10 years. However, buyers must initially pay a certain percentage of the total value and settle the remainder upon receiving the property.
Purchasing property in ongoing construction projects in Dubai and completing payments after delivery is a significant advantage of this method. Buyers can then fulfill their remaining obligations through rental income or other means, making it one of the most preferred payment approaches in Dubai today.
Mortgage Financing
Now let’s discuss mortgage financing, one of the most widely used methods for purchasing property in Dubai today. The mortgage law in Dubai is often an excellent choice for buyers who do not have the full property value in cash. A mortgage is a long-term loan granted specifically for buying or constructing a property, subject to various requirements and procedures such as registering the mortgage.
Mortgage financing offers several advantages when compared to paying in cash, including the ability to acquire premium real estate projects through monthly installments aligned with the buyer’s income and financial budget.
You can select the mortgage type that suits your needs, as each type comes with unique features and benefits. Common types include:
Fixed-rate mortgage
Variable-rate mortgage
Low-variable interest rate mortgage
Installment Payments Until Delivery with Developer or Owner
Many real estate projects offer installment payments as a payment option for buying property in Dubai under a defined system. The total property value is divided into specific percentages paid over set time intervals. For example, under a 60:40 system, you would pay 60% of the total value before delivery through installments, then complete the remaining 40% upon receipt. This makes it a favored choice among many individuals.
Many buyers opt for this method due to insufficient liquidity or a desire for flexibility during purchase, allowing them to obtain property more easily than a full cash payment. There are trade-offs between paying in cash versus installing, each with its own strengths and challenges.
Rent-to-Own Agreement
We now turn to one of the most convenient and modern payment methods currently available in Dubai: rent-to-own agreements. This approach allows the buyer to take possession of the property before fully paying the price. A contract is established between the owner and buyer, lasting up to 10 years, during which the buyer pays monthly rent. Upon full payment of the property value, ownership is transferred.
It’s important to note that certain conditions must be met when using this method, such as submitting a formal application for registration of a rent-to-own agreement. Additionally, annual rent may be higher than market rates, and only ready-built properties are eligible. Many people compare freehold ownership versus rent-to-own to determine which option suits them best.
90/10 Payment Method
The 90/10 payment method divides property purchase costs into pre-handover and post-handover phases. With this approach, you pay 10% of the property price before ownership, then settle the remaining 90% after receiving the property from the developer. This can be done through installments or another agreed-upon payment method.
These ratios vary depending on the developer and property type, determined by the responsible party—whether a bank, real estate agent, or developer. Thus, payment plans may also be structured as 60/40, 70/30, or similar variations.
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Payment Using Credit or Debit Card
Various payment methods are available in real estate, including cash, checks, bank deposits, wire transfers, automatic debit accounts, and credit cards. However, digital payments are growing rapidly—the number of users adopting digital transactions increased by 5.4% in 2020, according to Statista.
Recently, many real estate companies—including Emaar, Sobha, and others—have introduced services enabling payments via credit or debit cards from Visa, subject to specific terms set in collaboration with card issuers. This method aims to simplify property purchases in Dubai and across the UAE, reduce paperwork, and streamline processes.
Bank Check
If you’re wondering how to pay for real estate in Dubai, many companies prefer bank checks as a payment method. The buyer submits a bank check issued in the seller’s name on the day of title transfer, based on the agreed-upon price in the unified contract (F).
Purchasing Property in Dubai Using Digital Currencies
Continuing our discussion on payment methods in Dubai’s real estate sector, Dubai has become one of the first cities to embrace digital currencies. Investors can now buy properties using cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Several leading real estate firms have started offering this option, reflecting the growing shift toward a digital economy, while ensuring compliance by converting digital assets into UAE dirhams through licensed intermediaries before finalizing property registration.
Notable companies accepting digital currencies in Dubai include DAMAC Properties, which announced acceptance of Bitcoin and Ethereum; Nakheel Properties, partnering with Haven platform to facilitate crypto payments; Elgin Properties, collaborating with Bitcoin Switzerland; and Majid Al Futtaim, signing an agreement with CoinMena to accept stablecoins such as USDT and USDC. These initiatives demonstrate companies’ commitment to embracing digital transformation and providing flexible payment options for global investors. All these factors make digital currencies one of the most significant payment methods available today.
Important Considerations When Buying Property in Dubai
Buying property is one of the most important decisions you’ll make in life
There’s no doubt that deciding to buy property is among the most significant choices you’ll ever make. Numerous factors should be considered—such as evaluating the pros and cons of owning property in Dubai, researching the best areas for investment, and more. Below are key points to keep in mind and common mistakes to avoid when purchasing a home in Dubai:
Determining the location is crucial, as it affects cost and other aspects. Be sure to choose the right area and avoid incorrect selections.
Consult a reputable real estate appraisal company in Dubai to help determine the fair and accurate value of the property you wish to buy.
It’s also recommended to understand the steps to secure a mortgage in Dubai when planning your payment strategy.
Stay informed about current property prices and wait for the optimal timing to purchase in the UAE to get the best deal possible.
Clearly define the type of property that fits your needs—compare off-plan versus ready-to-move-in properties and understand the advantages and challenges of each.
Don’t rush into securing a mortgage.
Never skip inspecting the property.
Frequently Asked Questions About Buying Property and Choosing Payment Methods in Dubai
Here are some common questions with detailed answers regarding payment plans for buying property in Dubai:
Can installment plans be modified after initial agreement?
Yes, installment plans can be adjusted after the initial agreement, but this depends on several factors, including approval from all parties involved, lender or seller policies, and potential additional fees or charges based on the agreed terms.
What are the best payment methods in Dubai?
Several payment methods stand out, each with distinct advantages and challenges. Among the top options are:
Rent-to-own agreement
90/10 payment method
Use of digital currencies
What is the 60/40 payment plan in Dubai?
The buyer pays 60% of the property value as an initial down payment, while the remaining 40% is paid in installments after delivery. Note that payment ratios may vary between projects based on each developer’s policy.
This concludes our article, which focused on the steps to buy property in Dubai, including payment plans and key information. We also recommend reviewing tips on buying property remotely in Dubai, such as analyzing the market condition and choosing the right time to invest, along with other useful advice.
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