Bugatti Residences in Dubai by Binghatti

Why apartment buyers in Dubai are attracting a 1% monthly payment plan?

The advent of ‘1% monthly’ payment plans is a remarkable shift in luxury apartments in Dubai that is garnering broad notice as Dubai’s real estate industry approaches a transformational period in 2024. This creative finance structure is catching on quickly, especially with end-user purchasers, which is a significant departure from the previous market approaches. In this piece, we explore the compelling factors driving this payment plan’s explosive growth and explain why it’s revolutionizing the way Dubai luxury apartment buyers purchase apartments.

Reasons behind 1% payment plan attraction for Luxury Apartment in Dubai buyers

Photo of a luxury apartment in Dubai owner chilling after buying with 1% payment plan

Here is the list of reasons that are making the initiative of a 1% payment plan popular and demanding in UAE.

  1. Affordability and Financial Flexibility The 1% monthly payment plan’s main selling point is its unmatched affordability to its investors. This strategy serves a broader audience by dividing the intimidating lump-sum fees into affordable monthly repayments. Previously prevented from investing by high upfront expenses, buyers can now do so. This financial flexibility ensures a stable financial path towards homeownership by expanding the market pool and helping purchasers manage their budgets more efficiently.
  2. Response to Mortgage Market Volatility For those looking to buy a luxury apartment in Dubai, the recent tightening of mortgage accessibility and rising interest rates have presented serious difficulties. Many people found the ideal of owning a property difficult, as rates rose above 5%. A calculated reaction to this difficulty is the 1% monthly payment plan, which acts as a buffer against the mortgage market’s volatility. It ensures buyers are not at the mercy of fluctuating interest rates by providing a more accessible entry point into the real estate market.
  3. Competitive Edge in a Crowded Market Developers have faced fierce competition in Dubai’s real estate market, known for its spectacular off-plan property boom. In this jam-packed commercial center, recognizing one’s venture is principal. By presenting imaginative instalment plans like the 1% month-to-month offer, designers are cutting a speciality for themselves as well as offering some incentive to purchasers. In the midst of the plethora of best real estate deals in UAE available to buyers, this strategy distinguishes their projects by providing a distinct selling proposition.
  4. Emphasis on Timely Project Completion The importance of timely project completion has been brought to the forefront as the focus has shifted to end-user buyers. Purchasers are progressively careful about delays and are searching for dependability and affirmation. Engineers recognizing this shift focus on gathering their guaranteed timetables, understanding that opportune conveyance is a critical variable impacting buying choices for luxury apartments in Dubai. This responsibility further improves the engaging quality of the 1% regularly scheduled instalment plan, guaranteeing purchasers of monetary simplicity as well as the suitable handover of their properties.
  5. Reduced Upfront Payment Requirements Developers are lowering entry requirements to make property ownership more accessible. Some have put in any amount of work to diminish forthright instalment necessities to as low as 5%, combined with stretched-out instalment times of as long as 8 years in specific ventures. These purchaser-accommodating drives are crucial in democratizing property possession, permitting a more considerable fragment of the populace to consider putting resources into their dream homes.
  6. Adaptation to Regulatory Changes The property investment landscape has become more complex due to the changing regulatory environment, particularly about increased corporation tax responsibilities on unsold units. In response, developers are creating more buyer-focused payment schemes to handle these adjustments effectively. In this case, the 1% monthly payment plan is not just a financial model but also a calculated move to comply with the legal environment and give purchasers a seamless and legal transaction experience.
  7. A Window of Opportunity in a Transforming Market With the property market in Dubai undergoing this major upheaval, developers’ flexibility and vision are demonstrated by the 1% monthly payment plan. This plan goes beyond affordability for purchasers who are end users; it offers a ray of hope in a constantly changing industry. The way that such cutting-edge payment methods are strategically implemented could have a significant impact on Dubai’s real estate market going forward.

Benefits of buying a luxury apartment in Dubai with a 1% payment plan

a luxury apartment in Dubai photo

  1. Increased Affordability: A broader spectrum of customers may now afford luxury apartment in Dubai thanks to the 1% monthly payment plan, which considerably lessens financial hardship and provides a sensible alternative to typical lump-sum payments.
  2. Steady Budgeting: This creative method makes it possible to budget predictably and steadily, giving purchasers more financial security and removing the worry that their mortgage rates will fluctuate.
  3. Market Accessibility amid Mortgage Challenges: The 1% plan offers a vital entry point into the real estate market, protecting buyers from the direct effects of these market changes as mortgage access becomes more complex and rates rise.
  4. Competitive Edge with cut Upfront Costs: The financial barrier to joining the real estate market is significantly lowered with upfront payment requirements drastically cut, often to as low as 5%, combined with extended payment periods.
  5. Guaranteed fast Completion: End-user-focused developers place a high value on fast project completion. This ensures that purchasers gain from both financial flexibility and the prompt transfer of their properties, matching investment with delivery.

How does a 1% monthly payment plan work?

Many developers in Dubai have taken an innovative approach to property acquisition: the 1% payment plan. This method aims to make luxury flats in Dubai more appealing to a broader range of purchasers and investors. Buyers in this scheme engage in a tripartite arrangement with the developer, themselves, and frequently a bank or financial institution partner. The buyer agrees to pay 1% of the property’s total worth each month under the terms of this arrangement.

a luxury apartment in Dubai landscape flourishing with 1% payment plan

Interestingly, the plan immediately gives you a sense of ownership, which sets it apart from Rent-to-Own programs, where payments are first treated like rent. In this case, every payment goes straight toward buying the property, so the buyer is turned into a homeowner immediately. A key milestone is reached once the buyer has paid a specific amount of the property’s price—typically 50%- but developers may have other cutoff points. The buyer’s security and investment in the property are increased when they accomplish this milestone and receive the title deed.

This creative payment plan offers flexibility, security, and a gradual, cost-effective way to engage in Dubai’s thriving real estate market—all while rethinking the road to property ownership and relieving financial burdens.


In summary, the 1% monthly payment plan’s growing appeal in Dubai’s real estate market is supported by its compatibility with contemporary purchasers’ aspirational, lifestyle, and financial requirements. In addition to promoting a more diverse and inclusive real estate market, this strategy also captures the more significant legislative and economic changes that are reshaping the real estate market in the emirate. In 2024, the property market in Dubai will likely continue to grow and mature mainly due to the innovative payment strategies that have been implemented. This indicates that homeownership will become more accessible, transparent, and in line with the changing needs of a dynamic population.


  • What is Dubai’s 1% payment plan?

It is far less than the typical rent and mortgage payment in Dubai—just one percent of the monthly cost of the property. In addition, since you pay off the property sooner than with a traditional mortgage, you save money on interest and closing costs. This creates fresh real estate investment options in Dubai.

  • How is the 1% rule calculated to buy luxury flat in Dubai?

Divide the property’s purchase price by 0.01 to apply the 1% rule. The outcome is the base month to month lease that the property ought to produce.

  • What different elements ought to be viewed as past the 1% rule?

Other costs like taxes, insurance, maintenance, vacancy rates, and capital expenditures must also be considered to determine actual cash flow.


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