The citizens of many countries are increasingly resorting to buying real estate in installments from the developer. They are especially interested in purchasing a housing unit in the neighborhoods of Dubai. For example, investment apartments in Business Bay impress potential buyers with the perfect location and first-class quality.
Everyone knows obtaining real estate by taking on a mortgage is possible. However, there is an alternative to the ordinary way of a deal. Nowadays, future homeowners can get a property by obtaining installment payments from the developer. The two options are different. Installment payments are not financing but a payment plan. Nevertheless, they perform a crucial function – they allow the buyer to purchase a home that sells for more than the amount they have.
A few statistics
In the United Arab Emirates and Dubai, many real estate transactions are “installments.” This method is more prevalent in infamous neighborhoods like Business Bay than mortgages.
Most residential complexes in Business Bay enter the market at the off-plan stage, at the beginning of construction or the design stage. These objects developers are usually offered to buy these in installments: a down payment of 5 to 40%, and the remainder is divided into several payments. It is paid over a period specified in the contract. A few developers offer installments for 2-3 years after completion of construction, but they do exist, and it is possible to pay them in installments.
Rules and regulations of the installment plans
As the installment method was introduced long ago, modern developers try to offer more favorable conditions to their clients. The essential contemporary issues about installment plans are the following:
Long-term installments are not offered for the objects in great demand. As collateral acts as a purchased property or a down payment of 10 to 20% of the value, which can be purchased within 5 minutes online.
You can continue to pay the cost of the object, even after the commissioning, but in such cases, the builder will require payment by check, acting as a guarantor of payment.
You can get a checkbook only if you have residency status, which, in turn, can be obtained based on property ownership.
There are regulations of the Land Department, according to which, depending on the number of payments made, a portion will be returned to the client. The procedure and amounts are individual and depend on the contract with the developer.
Properties with outstanding installment payments are allowed for resale.
Real estate in Business Bay for sale
Business Bay is a real Dubai Manhattan, a business and residential district in the heart of the city, located just 1.5 km from the world’s tallest tower, Burj Khalifa, on the banks of the newly laid Dubai Canal.
Business Bay is in constant demand both from those wishing to rent offices and from potential investors and home buyers. It is practically an ideal area for work and life.
The area consistently tops the rankings regarding housing costs and the number of new offices, with the latest office buildings being built here. Business Bay has the advantage of vacant land plots for development, which will allow building exactly what tenants need, which means that the demand for office rent in this area will also grow. Demand for “exclusivity” of office buildings also leaves an advantage for Business Bay.
The development of the area
Ultimately the project Business Bay by Marasi, costing 272 million USD, will be implemented only by 2023 – then there will be parks, 16 outdoor areas for various purposes, play areas, theatres, outdoor cinemas, and weekly markets on 250 thousand square meters. Some of these transformations will be possible to see firsthand by 2017, the scheduled completion date of the project’s first phase.
Plans for expanding office space in Business Bay include projects from Dubai’s leading developers at various stages of completion. These include The Exchange, B2B Tower, Al Manara, Al Khail, Damac Towers by Paramount, and more than 100 other buildings that will house top-quality offices, luxury apartments and condos, and retail space.
The findings
The Dubai real estate market attracts wealthy people and foreign investors because of the higher returns and stability, affecting the real estate market. The professional real estate agency Ax Capital introduces various advantageous housing options at affordable prices. Besides, the experienced agents can provide detailed information on famous developers and potential installment plans. Do not wait to ask for a high-quality apartment or a villa and make a reasonable investment.
