Purchasing property in Dubai in installment

0
654

Buying a property in the UAE is really a reasonable step, with many advantages.

The UAE is a calm and stable country.                                                                         The government of Dubai controls the transactions with real estate, so the buyer can feel protected at the legislative level. In addition, all major developers participate in state tenders.
Despite the activity of the real estate market in Dubai, there are no frauds in this sphere as only licensed companies with an impeccable reputation are allowed to build new buildings there.
It is profitable to invest in Dubai real estate, because the price per square meter increases every year, and you can always profitably sell the housing here.

The investment attractiveness of the Dubai property market is determined not only by economic indicators – high profitability from leasing against a background of relatively low prices, etc. A considerable role is played also by special offers in the emirate for buyers. Today, housing in Dubai can be purchased on an installment payment basis – after paying some of the cost, the buyer pays the remainder for several years after the object is handed over.

Until recently, this period could exceed 5 years, and sometimes even reach 10 years. However, experts believe that this state of affairs will change in the near future.
Some of experts consider that the installment payments have already reached or have almost reached their limit: the price difference between ready and under construction objects has begun to decline, and developers are unlikely to continue to offer such favorable terms.

At the same time, there is reason to believe that developers will not completely abandon such payment schemes, but only limit the time.

For example, the introduction of VAT in the country theoretically raises the cost of housing in Dubai – but only if the object has not been sold for three years. Then housing is exempt from tax. Thus, it is more profitable for a builder to sell the object as soon as possible, otherwise it will have to include VAT in the value of the property. 5% is not so much, but enough to lose a potential client in the market with high competition, such as in Dubai.

So, the developers who offer such schemes act as banks that issue loans at a good interest for many buyers with limited financial opportunities.

Finally, most buyers prefer to use the option of payment in installments to avoid taking a mortgage in a bank where the conditions are much worse. Developers, in turn, have the opportunity to attract customers, which also positively affects the market.

Thus, schemes for buying housing in Dubai on terms of an installment plan are likely to decline in terms, but will continue as a phenomenon.