Day: August 21, 2025

purchasing property in Dubai
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Comparing Dubai’s 1% Payment Plan and Mortgage Options for Buyers

By Ansar Yoonus,

Over the past two decades, Dubai has evolved into a global hub for luxury living, tourism, and business.

One of the most attractive markets in the world, Dubai’s real estate has been drawing investors and end-users more than ever with its strategic location, futuristic infrastructure, and strong capital appreciation.

With that, the city continues to introduce innovative financing options to make property ownership more accessible.

And among the most talked-about developments in recent years is the 1% payment plan in Dubai. Introduced by Danube Properties into Dubai’s vibrant real estate market, the plan has opened doors for a wide range of investors.

At the same time, traditional mortgage financing remains a viable route for those seeking to purchase properties for sale in Dubai.

Each option comes with unique benefits and considerations, making it important to compare both pathways.

Let’s explore the differences between the 1% payment plan and mortgage options, while also highlighting the opportunities in the Dubai and UAE property markets.

The Growing Appeal of Property in Dubai

With freehold ownership opportunities available to global investors in designated areas and the city’s investor-friendly environment, the interest in property in Dubai continues to grow.

Moreover, government initiatives such as long-term visas for investors crossing certain thresholds, zero property tax, and high rental yields have further boosted confidence in the real estate sector.

As a result, demand for innovative financing schemes has risen, and Danube Properties has responded with flexible payment structures.

Danube’s 1% payment plan is one of the standout offerings designed to compete with, and in some cases replace, the traditional mortgage model.

Understanding the 1% Payment Plan

Dubai’s 1% payment plan is a developer-backed scheme that allows buyers to pay for a property in small monthly installments, starting at just 1% of the property’s value, until handover or completion.

And the most prominent of these options is the Danube’s 1% payment plan, which has gained immense popularity.

The key features offered by the 1% payment plan include:

  • Small monthly payments: Instead of large down payments and heavy financial commitments, investors pay only 1% per month.
  • No bank involvement: Payments are made directly to the developer, avoiding mortgage approvals, interest rates, and bank charges.
  • Flexibility: Often extends beyond handover, allowing buyers to continue paying post-completion.
  • Accessibility: Makes owning properties for sale in Dubai more realistic for first-time investors or those without immediate access to bank financing.

The concept is designed to make property ownership attainable to a wider audience while ensuring developers maintain consistent cash flow throughout construction.

Traditional Mortgages in Dubai

Even with new incentives in the market, mortgages remain a widely used option for purchasing property in Dubai.

Unlike the developer-led 1% plan, mortgages involve banks and financial institutions, regulated by the UAE Central Bank.

Some benefits of mortgaging in Dubai include:

  • Lower initial cost after financing: Even though a down payment is required, mortgages allow buyers to secure high-value property in Dubai without paying the entire price upfront. This makes premium properties within reach of long-term investors.
  • Access to higher-value properties: Bank financing covers up to 75–80% of the property price, enabling investors to consider luxury or prime locations that might otherwise be unattainable.
  • Predictable repayment structure: With interest-based lending, mortgages provide a clear repayment schedule that helps in financial planning and long-term budgeting.
  • Secure and regulated: Mortgage approvals involve strict eligibility checks, which add an extra layer of security and ensure that only financially viable transactions move forward. This protects both the buyer and the market.

Mortgages work well for those with stable income and long-term plans in Dubai or the UAE, particularly when targeting ready properties.

Comparing the Dubai 1% Payment Plan and Mortgages

Weighing the Danube’s 1% payment plan against a mortgage, several factors stand out.

1. Affordability and Accessibility
  • 1% Payment Plan: Requires smaller monthly installments and eliminates the need for a large upfront down payment, making it highly accessible.
  • Mortgage: Requires significant savings for the initial down payment and closing costs, which can be a barrier for many buyers.
2. Bank Involvement
  • 1% Payment Plan: No bank approval is required, removing the stress of credit checks or financial documentation.
  • Mortgage: Heavily reliant on bank assessments, making the process more complex.
3. Ownership and Handover
  • 1% Payment Plan: Typically tied to off-plan developments, meaning ownership is realized at project completion.
  • Mortgage: Commonly used for ready properties, allowing immediate ownership and rental income potential.
4. Flexibility
  • 1% Payment Plan: Can extend post-handover, offering more time to complete payments without traditional interest charges.
  • Mortgage: Structured with fixed repayment schedules that may include penalties for early repayment.
5. Investment Perspective
  • 1% Payment Plan: Attractive for investors seeking entry into the Dubai market with minimal upfront risk, especially in emerging areas.
  • Mortgage: Ideal for buyers seeking long-term stability, especially for end-use properties.

Why Danube’s 1% Payment Plan Stands Out?

Among developers in Dubai, Danube has established a strong reputation for providing affordable luxury housing.

The 1% payment plan by Danube is particularly appealing for:

  • First-time buyers: Minimal entry costs enable easier market entry.
  • Investors: Spread-out payments preserve liquidity for other ventures.
  • Expats and non-residents: No need to navigate UAE banking requirements.

In addition, Danube’s projects are strategically located in prime areas, ensuring high rental demand and strong appreciation.

For many, this scheme bridges the gap between ambition and affordability in Dubai’s property market.

Risks and Considerations

While both options are attractive, it is essential to assess risks:

  • 1% Payment Plan: Buyers should research the developer’s track record and ensure project delivery is reliable. Delays in off-plan projects can affect timelines. This can be solved by partnering with trusted developers.
  • Mortgage: Interest rate fluctuations and financial obligations over decades may create long-term burdens.

A careful review of personal financial goals and market conditions is vital before committing.

Properties for Sale in Dubai Under Different Financial Models

Dubai offers a wide range of properties for sale, from luxury villas and penthouses in Dubai’s skyline to affordable apartments in areas like Jumeirah Village Circle, Al Furjan, and Dubai Silicon Oasis.

  • With Dubai’s 1% payment plan, buyers often focus on off-plan projects in emerging communities that promise future growth.
  • With mortgage financing, ready properties in established communities such as Downtown Dubai, Dubai Marina, or Arabian Ranches become more viable, offering immediate rental yields for investors.

Both models contribute to the growth of Dubai’s real estate market, providing diverse opportunities for local and international investors.

The Future of Property Financing in Dubai and the UAE

The UAE real estate sector is rapidly evolving, with financing innovations driving new demand.

The 1% payment plan has reshaped the landscape, enabling more accessible property ownership while mortgages continue to serve those seeking ready options and long-term stability.

As Dubai prepares for continued population growth, infrastructure expansion, and its vision to remain a global city, both financing routes will play an integral role in attracting investment.

Conclusion

While the 1% payment plan offers unmatched accessibility for off-plan buyers, mortgages remain a tried-and-tested method for acquiring ready properties with immediate returns.

With a growing selection of properties for sale in Dubai, both options present exciting opportunities for those seeking to invest in one of the world’s most dynamic real estate markets.

For many, the choice between the 1% payment plan and a mortgage depends on individual goals, whether prioritizing affordability, immediate ownership, or long-term security.

CategoriesNews

Expect 20% Growth Every Year—Danube Group Chairman Rizwan Sajan On Dubai’s Unstoppable Rise

By Ansar Yoonus,

 


Rizwan Sajan, Chairman of the Danube Group, has built an empire on making affordable homes accessible to all. As new initiatives for first-time buyers open up new markets, he says Dubai’s real estate boom is just getting started.

When Rizwan Sajan arrived in Dubai in 1993, he had a few thousand dirhams, an entrepreneurial vision, and the ability to spot an opportunity. Fast forward 30 years, and he is the head of a property and construction empire and one of the most influential real estate developers in the region. Having started out trading building materials, he launched his real estate venture, Danube Properties, in 2014. As of August 2025, the company had over 21,000 residential units and had launched 35 projects, 18 of which had been delivered, with 17 under construction.

Sajan’s 1% payment plan has allowed middle-income buyers to buy homes with monthly installments as low as 1% of a property’s value, democratizing access to quality housing while still offering all the amenities expected in luxury property – something that he says is becoming even more important to potential buyers. “Today’s buyer is not looking for normal real estate. Earlier, you could give them a nice apartment and a good building, and they’d be happy. Today, they want a lifestyle, not only the gym and the pool. We try to pamper the customers so much, and that’s what the customer looks at,” he explains.

Now, Dubai Land Department is introducing a program for first-time home buyers that is rewriting the rules of real estate ownership. Something that Sajan is embracing. “When we came into the business, my whole objective was to go to first-time buyers who could not get a loan from the bank, especially for the offline properties, and that’s how we came up with this 1% payment plan,” says the seasoned developer. “When a first-time buyer is looking for a payment plan, they are looking for flexibility in the detailed payment. So this is a very good initial initiative from the land department to attract people to come, especially first-time buyers. Don’t miss it, because this is a great opportunity.”

With initiatives in place to make home ownership more affordable and luxury property the norm in the hub of Dubai, Sajan believes that the recent growth in property prices will continue for some time to come. But rather than putting potential buyers off, he says this is all the more reason to buy, especially as Dubai is still so much more affordable than other major global cities.

“The prices in Dubai are much lower than if you compare them with the international market. We are two and a half times cheaper than Singapore, two times cheaper than Shanghai, and five times cheaper than Hong Kong. In the West, we are three times cheaper than central London. In Europe, you take developed cities in Germany, France, or Monaco, we are three, four, or five times cheaper,” he insists. “Dubai is still at the beginning. It’s going to go up and up. I am expecting another 15-20% growth every year in terms of rental, in terms of appreciation, provided you buy from the right developer at the right location. And this will keep on continuing.”

CategoriesNews

UAE: Golden Visa professionals set to drive Dubai property market, says Danube chief

By Ansar Yoonus,

UAE professionals holding a 10-year Golden Visa will be among the key drivers of Dubai’s property market in the coming years, according to Rizwan Sajan, chairman of Danube Properties.

“Many medical professionals in the UAE have either received or qualify for the Golden Visa,” Sajan told Khaleej Times.

As a result, many are choosing to invest in Dubai property and remain in the country, both for their careers and retirement. This makes investing in Dubai real estate a logical decision for them,” he added.

Sajan, an industry veteran, spoke during a recent open day event for doctors and healthcare professionals in the UAE, which featured a discounted payment plan for attendees.

Introduced after the Covid-19 pandemic, the UAE has been offering a Golden Visa to healthcare professionals.

According to Abu Dhabi’s Department of Economic Development, applicants should have a minimum of 5 years’ experience in the UAE, valid practicing licence, and a bachelor’s degree or equivalent.

In addition, professionals working in science and research, IT, engineering, education, and other skilled fields are eligible for a 10-year residency permit.

The Golden Visa scheme has seen growing demand since its launch in 2019, offering long-term stability for expat residents and investors who wish to live, work, and retire in the UAE.

The latest figures released by the authorities in Dubai showed that the number of Golden Visas issued in all categories reached 158,000 in 2023, up from 79,617 in the previous year.

Rally to continue

The Dubai-based billionaire remains optimistic about the local property market and expects prices continue to rise over the next few years, provided there are no geopolitical tensions in the region.

He added that buyers are unlikely to find current property prices in Dubai after two years, as values are expected to appreciate.

“I believe prices will rise as the influx of people to Dubai continues to grow. The upcoming integrated gaming resort at Al Marjan in Ras Al Khaimah will also be a significant development for the local property and hospitality markets,” he said. He added that, barring any geopolitical issues, Dubai property prices are likely to trend upward over the next four to five years.

“Prices in central areas like Downtown, Business, Al Furjan, Silicon Oasis, Sports City, all the centrally located places will go up and up. Plots that we bought two years ago cost four times more. Similarly, construction companies are paying up to 60 per cent higher prices because of the rising cost of construction material.”

Sajan predicts annual property price increases of 15–20 per cent over the next four to five years in key areas such as Downtown Dubai, Business Bay, Al Furjan, Silicon Oasis, and Dubai Sports City. He also noted that land purchased two years ago is now worth four times more, and construction costs have surged by up to 60 per cent due to “the rising cost of construction material”.

“All the projects that we launched over the last 2-3 years in JVC, Silicon Oasis, and other communities have seen 25-35 per cent capital appreciation. The prices that are available today will definitely not be the same rate in 2-3 years as they will appreciate,” he said.