Believe it or not, Indian investors have the opportunity to invest in a Dubai property by making monthly interest payments of only 1%. Doesn’t it sound like something you’d want?
Global investors, concentrating especially on Indians, have always seen Dubai as an important market for real estate. Thanks to a strong economy, no tax system and continual growth in property values, Dubai looks very attractive for property investors. The 1% payment scheme is an attractive offer for Indian investors, yet people are asking if it’s really helpful for them. Let’s explore.
1. What is meant by the 1% Payment Plan?
Buyers paying under the 1% plan only need to pay 1% of the property’s cost per month. You don’t have to spend a lot of money upfront to get started. If you buy a property for AED 1 million (that’s around ₹23.3 million), your monthly payment is only AED 10,000 (about ₹23,300). Because of this plan, properties are more affordable to purchase than if you took a typical mortgage.
2. How is the 1% Plan Offered?
A lot of developers in Dubai provide this plan to help more people afford to purchase property. Danube Properties and Damac Properties join forces with banks to give buyers the option of paying 1% each month for off-plan buildings. As soon as the first payment of 50% of the property price is made, the buyer receives the title deed. Because of this, users have the choice to sell or lease the property after buying it.
3. Why Should Indian Investors Choose Dubai’s 1% Payment Plan?
3.1 You Only Pay a Little Every Month
Buying a luxury home in top locations like Business Bay , Palm Jumeirah and Dubai Hills Estate is easy using the 1% plan and its low monthly pricing. At the same time, because this loan isn’t as demanding as a normal home loan when it comes to monthly payments, it’s a good option for people in India.
3.2 None of these loans costs extra or charges interest.
Because there aren’t high-interest charges or extra closing fees with this plan, investors are able to handle their payments more easily.
3.3 Members own their homes from the moment they are moved in
Under the 1% plan, you are able to build equity from the very first rent payment; with rent-to-own, you only rent the property. Within two weeks of providing 50% of the required payment, you are given the title deed and turn into the legal owner.
3.4 High ROI
You can find some of the best rental yields anywhere in the world in Dubai, at approximately 7%. Rental money and the gain in property value make things very attractive for Indian investors. You don’t need a big down payment to buy properties with the 1% payment plan.
4. Risks You Should Know
4.1 Just a few properties to choose from
Every property can’t take advantage of the 1% payment plan. Because not every development has the same features or locations, choosing one can restrict your property preferences.
4.2 The risk of your project running late.
Because properties in this development are mostly off-plan, there’s always a risk of the projects being delayed. You should select a developer that has built a solid reputation for their work.
4.3 Approval Requirements
Applying for this loan means you must get the developer and bank to agree which usually needs a good credit history and proof you are financially stable.
5. Conclusion
Indian investors now have a chance to join the Dubai property market with a little investment thanks to the 1% payment plan. Since the program offers good rental returns, potential for higher property values and instant ownership, it’s very appealing. In addition, you should still look into the district, the developer and what’s happening in the current market to make sure the investment is right for your money plans. As a result, Indian investors have the best chance to benefit from the attractive investment option in Dubai.
