Dubai’s property market has remained strong but is experiencing signs of strain after years of rapid growth. However, new towers and villa communities are still being built, as developers are optimistic about continued success. The property prices have surged, attracting wealthy investors and pushing up demand, but the rapid escalation of costs, is beginning to slow down the real estate investments, particularly in the off-plan market. But this is simultaneously giving birth to a new league of investment opportunity governed by caution.
Amid the dramatic rise in properties on the market, attracting both local and international buyers, intelligent sales are happening through installment plans. Installment schemes have become increasingly popular, offering a more accessible entry point into the Dubai property market for foreign investors who do not wish to block a lumpsum. For buyers, this shift presents both opportunities and risks. Installment schemes have become increasingly popular; however, the long-term viability of such plans is uncertain, especially if the market continues to cool. With demand tapering off and the threat of oversupply looming, both developers and buyers must navigate this evolving landscape carefully.
Having said that, the apartments available for sale through investment schemes are especially of interest to the international community. Investors from outside of Dubai have a variety of options where they can buy property in Dubai on installments. This article discusses some of the top places in Dubai where investors can acquire property at an affordable price paid in installments. It is a cost-efficient way of acquiring a prestigious, high-quality property without paying the entire amount at once or having to apply to the banks for a mortgage. Dubai offers numerous options for payment schedules, making it possible to plan your purchase on convenient terms.
Glimpse of Dubai’s Real Estate Market
The real estate industry in Dubai has remained strong and is expanding, as seen by the increase in prices of all types of properties. The most recent information contained in Bayut’s sales report for 2024 shows that affordable housing costs rose by up to 55 percent, while those for middle-range units climbed by 20 percent to 55 percent. It is also noted that there has been a significant increase in the prices of luxury homes at around 56 percent. Such positive growth is a clear indication of a healthy sector at present that provides favorable chances for investment in real estate property.
Affordable Properties to Buy on Installments in Dubai
Dubai Silicon Oasis (DSO)
The most sought-after location for cheap housing in Dubai is Dubai Silicon Oasis. It has a very striking price of about AED 835 per sq ft (approximately USD 227); giving a return on investment of 9.1 percent, which is quite lucrative. This locality now appeals to the foreign investors that seek low-cost housing options in Dubai.
Average Transaction Prices:
- Studio: AED 421,000 (USD 115,000)
- 1-Bedroom: AED 638,000 (USD 174,000)
- 2-Bedroom: AED 1,126,000 (USD 306,000)
Dubai Sports City
Dubai Sports City is also a great place to find cheap housing options; with an ROI of 9.34 percent. The average price per square foot is around AED 864 (approximately USD 235). It is popular among people who love sports and families who want to live in a lively neighborhood.
Average Transaction Prices:
- Studio: AED 467,000 (USD 127,000)
- 1-Bedroom: AED 680,000 (USD 185,000)
- 2-Bedroom: AED 1,049,000 (USD 285,000)
Mid-Tier properties to buy on installments in Dubai
Jumeirah Village Circle (JVC)
With an ROI of 8.26 percent, buyers of mid-range apartments prefer Jumeirah Village Circle. The average cost is AED 1,218 per square foot (approximately USD 331). JVC is preferred by families and young professionals due to its community-centered layout as well as the numerous facilities available there.
Average Transaction Prices:
- Studio: AED 589,000 (USD 160,000)
- 1-Bedroom: AED 915,000 (USD 249,000)
- 2-Bedroom: AED 1,417,000 (USD 386,000)
Business Bay
Business Bay offers mid-range properties that are very lucrative. This is because their ROI averages at 6.65 percent. The average price per square foot here is AED 2,002 (approximately USD 545). It is recognized for having contemporary structures and being near the Dubai Water Canal, thereby being suitable for individuals who prefer living in busy cities.
Average Transaction Prices:
- Studio: AED 986,000 (USD 269,000)
- 1-Bedroom: AED 1,543,000 (USD 420,000)
- 2-Bedroom: AED 2,355,000 (USD 642,000)
Luxury Properties to Buy on Installments in Dubai
Dubai Marina
With an ROI of 6.69 percent, Dubai Marina proves to be the best place for high-end residential units. The average price of one square foot is AED 1,913 (which is approximately USD 522). This area is highly desirable among rich property purchasers because of its amazing sea views and busy social life.
Average Transaction Prices:
- 1-Bedroom: AED 1,604,000 (USD 437,000)
- 2-Bedroom: AED 2,570,000 (USD 700,000)
- 3-Bedroom: AED 4,096,000 (USD 1,115,000)
Downtown Dubai
Luxury living is what describes Downtown Dubai best; it has an ROI of 6.10 percent. The average price per square foot in this area is AED 2,853 (around USD 778). With landmarks like the Burj Khalifa and Dubai Mall in proximity, this is one of the most exclusive addresses for investment in town.
Average Transaction Prices:
- 1-Bedroom: AED 2,081,000 (USD 567,000)
- 2-Bedroom: AED 3,942,000 (USD 1,073,000)
- 3-Bedroom: AED 6,483,000 (USD 1,765,000)
Disclaimer: The above information may vary due to changing market conditions, property size, and other factors. It is recommended to do proper research and consult professionals before deciding.
Conclusion
There are many chances for foreign investors in the Dubai property market, especially if they want to pay through installments. The different kinds of available houses make it possible for one to invest right depending on his financial targets and comfort. By applying appropriate tactics and gaining experience, investors can overcome changes occurring in Dubai’s property sector and be able to acquire some wealth at the end of the day from this busy metropolis.
Frequently Asked Questions
Q1. What are the benefits of buying property in Dubai for foreign investors?
A. There are several reasons why foreign investors should consider buying property in Dubai. First, because Dubai offers a tax-friendly environment, you can be exempted from paying any capital gains tax or inheritance tax. Second, the real estate market provides high rental yields, making it an attractive investment opportunity. Third, Dubai is a global business hub with a diverse expatriate community and a growing demand for residential properties. This makes it a favorable location for investment and residential purposes.
Q2. Are there financing options available for foreign investors looking to buy property in Dubai?
A. Yes, there are financing options available for investors looking to buy property in Dubai. Many developers offer flexible payment plans, allowing buyers to pay in installments based on the stage of construction. Several banks in Dubai also offer mortgages to expatriates, provided they meet specific eligibility criteria, such as a minimum income requirement and a valid residence visa.
Q3. What are the typical costs associated with purchasing property in Dubai?
A. Apart from the cost of the property itself, buyers can have several other expenses to meet when purchasing property in Dubai. These include the Dubai Land Department (DLD) registration fee – which is about 4 percent of the property’s sale price – as well as real estate agent fees – usually around 2 percent. Buyers will also need to pay for maintenance fees, which can vary depending on the property. It’s also advisable to set aside funds for property insurance and potential renovation or refurbishment costs.
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