Buying property in Dubai has become more accessible than ever, thanks to flexible financing options like the 1% monthly payment plan. This plan, offered mainly on off-plan properties, allows buyers to own a home with low upfront costs, making it a popular choice among both investors and first-time homeowners.
What Is the 1% Property Payment Plan?
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The 1% property payment plan is a flexible financing option offered directly by real estate developers in Dubai. Instead of taking out a traditional mortgage, buyers pay just 1% of the total property value every month, usually over a period of 6 to 10 years. There’s typically no need for bank approval, making it a more accessible path to homeownership for many. This plan is especially popular with off-plan properties—homes that are still under construction—because it allows buyers to secure a unit with a low upfront cost and manageable monthly installments.
Danube Properties was the first to introduce this concept in Dubai. A division of the Danube Group, founded by Rizwan Sajan in 1993, Danube is known for its fully furnished apartments, smart floor plans, and customer-friendly payment structures. Their 1% monthly plan quickly gained attention for making homeownership more affordable without the complications of traditional lending. It’s now a widely recognized alternative in Dubai’s property market.
Example:
Imagine you’re buying a studio apartment priced at AED 600,000 under a 1% payment plan. You start with a down payment of AED 60,000 (10% of the property price). After that, you pay AED 6,000 each month, which is 1% of the total price. Over 100 months, or about 8.3 years, you will have paid off the full AED 600,000. In many cases, there’s no large balloon payment at handover, although this can vary depending on the developer.
The key to understanding the 1% payment plan lies in the relationship between the down payment and the payment duration set by the developer. If a developer only offers a three-year plan, you’d need to increase the initial down payment significantly. For example, to cover AED 600,000 in just 36 months at AED 6,000 per month, you’d only pay AED 216,000 during those three years. This means you’d have to pay around 64% upfront or deal with a hefty final payment. That’s hardly appealing for most buyers.
This is why many developers in Dubai, such as Danube Properties, offer post-handover payment plans. These allow buyers to spread the cost beyond the construction phase, reducing the need for a massive upfront payment. Investors and end-users benefit by securing a property with just 20–25% down, making it easier to purchase more than one unit or simply manage their finances without unnecessary stress.
Danube, for example, has taken this concept further by offering payment plans that stretch up to 10 years. This approach not only lowers the financial burden but also makes property ownership accessible to a wider audience. The flexibility of such plans is a major reason why 1% schemes have become so popular among both investors and first-time buyers in Dubai’s real estate market.
Benefits of the 1% Payment Plan
- Affordability
One of the biggest advantages of the 1% plan is its low upfront cost. Buyers can secure a property with a small down payment and continue with affordable monthly installments, making it easier to enter the market without needing a large lump sum.
- Better Cash Flow Management
This structure is ideal for both investors and end-users. It allows you to maintain a steady cash flow while gradually building equity in the property. For investors, it also opens the door to purchasing multiple units over time, helping to grow a real estate portfolio more efficiently.
- No Bank Mortgage Required
With the 1% plan, financing is typically handled directly by the developer. That means you might not need to go through traditional mortgage approvals or meet strict credit score requirements—though basic financial checks may still apply.
- Ownership Assurance
Once you pay the 4% Dubai Land Department (DLD) fee, you usually receive the Sales Purchase Agreement (SPA) right away. In some projects, the title deed is issued upon completing the final payment, giving you full legal ownership and peace of mind.
Challenges and Constraints of the 1% Payment Plan
While the 1% monthly payment plan offers flexibility and affordability, it does come with some important considerations:
- Limited Availability
Not all developers offer this plan. It’s typically available with a handful of developers and only for specific off-plan projects.
- Construction Delays
Since most of these properties are off-plan, there’s always the possibility of delays in construction or changes to the handover timeline, or even takes time up to 4 years for only the construction.
- Higher Overall Price
Properties under this plan often come with a markup. For instance, a studio that might cost around AED 600,000 with a cash deal could go up to AED 800,000 or more under the 1% plan. Developers usually offer large discounts for upfront payments, so the flexibility comes at a price.
- Resale Restrictions
You might not be able to resell the property until you’ve paid a certain percentage of the total amount. In most cases, resale is only allowed after you’ve completed at least 35% of the payment.
In short, while the 1% plan makes it easier to step into property ownership, it’s important to weigh these factors carefully before making a decision.
Developers Offering 1% Plans
Several leading developers in Dubai are known for their flexible payment plans, including the 1% model:
Danube Properties: Known for projects like Elz, Lawnz, Resortz, and Eleganz. These often include a 10% down payment and 1% monthly after that.
Damac Properties: Offers 1% plans for select units in Canal Heights, Safa Two, and Morocco.
Azizi Developments: Offers a range of off-plan properties with extended payment options and post-handover plans.
Mortgage vs 1% Plan: What’s the Difference?
| Feature | Traditional Mortgage | 1% Developer Plan |
| Financing Source | Bank / Lender | Property Developer |
| Credit Score | Mandatory | Often less strict |
| Down Payment | 20% or more | As low as 10% |
| Interest | Yes (typically 3%-5%) | Usually interest-free |
| Ownership Timeline | Immediate upon mortgage issue | Full ownership after payment plan |
| Risk of Repossession | Bank can foreclose | Developer can cancel if unpaid |
Conclusion:
Dubai’s 1% property plan is a great tool for making real estate more accessible, especially for buyers who want to avoid traditional mortgages. While it’s not suitable for every scenario—due to eligibility checks and limited availability—it can be an excellent fit for those looking to own property with minimal financial pressure upfront.
If you’re considering this route, make sure to evaluate:
- The developer’s reputation
- The timeline of construction
- The terms of the contract
- Whether the title deed is delivered post-handover
A smart combination of budget planning, understanding the payment schedule, and choosing the right project can make the 1% plan work to your advantage.