In Dubai, it is possible to finance part of the purchase price of a property through a bank or to have property developers offer a payment plan over several years (maturity plans). In most cases, these payment plans do not provide for interest charges, as is naturally the case with bank loans.

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This applies to the period between the reservation of a property and the handover of the keys. With some property developers, it is also possible to pay a substantial part of the purchase price over several years after the keys have been handed over. This is ideal for rental investments, as in this case a large part of the purchase price is financed directly by the rental monies received, without having to advance the money.

Rental yields in Dubai vary depending on the project and location and can offer attractive yields of 6% to even 13%.

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If you enter into such a payment plan, you agree not to resell the property from the plan until you have paid 30-40% of the total price, depending on which developer you buy with.

The longest payment plans are for 12 years. This means that you have to pay a certain percentage between the reservation of the property and the handing over of the keys. The second part is to be paid over a period of 10 years after the keys are handed over.

 

 

Property purchases are financed by local banks in Dubai with 50%, some banks also offer 60% financing of the purchase price. In the case of properties on plan, financing is only applied for a few months before completion, as is the case in Spain, for example.