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This plan opens the doors for first-time buyers and investors to purchase high-end real estate in Dubai with minimal financial stress. By splitting costs over the years, DAMAC’s 1% payment plan has made property ownership achievable even with limited savings.
What is the Damac 1% Payment Plan?
DAMAC Properties allows buyers to pay just 1% of the property’s price monthly over an extended period. Only a low initial down payment is required, followed by 1% installments each month with no added fees or charges.
Eligibility and General Conditions
To be eligible for the 1% payment plan, buyers must meet these basic criteria:
- Low initial down payment
- 1% of property value paid monthly
- Valid Emirates ID
- Applicable only on select properties
The plan allows flexibility to pay off the amount sooner than 5 years without penalties. However, a processing fee applies if payments are missed consecutively.
Benefits of DAMAC’s 1% Payment Plan
Now that we’ve covered the Damac 1% payment plan and common eligibility conditions, let’s look at the advantages of the payment plan.
Affordability and Flexibility
The biggest appeal of this plan is that it eliminates the high entry barrier that often dissuades aspirants in Dubai’s luxury realty landscape.
A low down payment and 1% installments make high-end properties affordable to a wider pool of buyers by easing cash flow constraints. Whether customers have limited savings or funds tied up elsewhere, this plan gives them the flexibility to purchase their dream home without financial pressures.
Stress-Free Financial Planning
With just 1% due every month, buyers can better plan finances rather than arranging a large lump sum. This predictability and control over cash outflows allow customers to maintain their standard of living without compromising on necessities.
Besides established professionals, this also attracts young expatriates new to Dubai who may lack sufficient liquidity to buy prime property outright. Either way, the reduced upfront investment eases the entire planning process.
Investment Opportunity
The Damac 1% payment scheme also catches the eye of investors seeking to enter Dubai’s property market with lower risks. They can generate rental yields on ultra-luxury apartments with a minimal initial outlay.
Over time, as the property value appreciates, their investment grows manifold despite incremental payments. Additionally, the 8-year tenure gives sufficient room for capital appreciation in Dubai’s thriving real estate landscape before the final settlement.
Who Should Consider the 1% Payment Plan?
First-Time Home Buyers
For newcomers in Dubai deterred by the financial obligations of owning a home, the 1% plan overrides concerns of unavailable funds, credit unworthiness, or debt burdens.
Since luxury flats near prime locations already fetch high rents, this scheme allows first-timers to enter the market with only 1% monthly installments. Over time, rising equity unlocks options to upgrade or access finance if needed.
Investors
Investors also realize the investment potential minus substantial upfront risks. The 1% plan does not tie up capital intensities, allowing funds to be deployed elsewhere while consistent rental income from their Dubai property grows equity overtime.
When the market is bullish, the low acquisition cost leaves higher profit margins. Some investors may even choose to flip the property once its valuation peaks - all with modest initial capital deployed.
Expatriates in Dubai
Salaried expatriates often gravitate towards Dubai’s high-end real estate given its global allure and lifestyle offerings. Yet the pressures of sizable mortgage payments or large savings required self-financed purchases can be limiting.
The 1% payment scheme eases these constraints for white-collar expatriates by lowering monthly outflows. Over time, gains in rental income or property value outweighs incremental payments—making it a financially viable long-term proposition.
How Does the 1% Payment Plan Work?
To understand how this payment plan works, take the example of the Canal Heights 2 from Damac Properties:
Deposit: You need to pay the initial deposit of 24% of the total value of the property. This is a one-time payment that serves to secure the property.
1st Installment: After three months, only 1% of the total property value is paid every month.
Monthly payment: till 29 months on 1% of the remaining amount. Besides the regular quarterly payments, an additional 4% at the 6th, 12th and 25th months are due for keeping on schedule.
Completion: At the time of occupation, you need to clear the remaining 40% of the total amount.
Thus, this plan gives the buyers more than enough time to space their payments and prepare their finances. This, in turn, makes the journey towards luxury living less stressful and affordable.
Available Projects Under DAMAC’s 1% Payment Plan
If you’re thinking to grab this opportunity, Damac offers several exciting projects under the 1% payment plan:
DAMAC Casa – Luxury 1 to 5 bedroom apartments and 1 to 2 bedroom townhouses located in Al Sufouh, overlooking the iconic Palm Jumeirah. Residents can enjoy stunning sea views and access to an artificial beach, aqua spa, island pool, aquarium hall and more amenities within the tower.
Starting prices from AED 2,740,000.
Golf Greens – Situated within the lush Trump International Golf Club Dubai at DAMAC Hills , DAMAC Golf Greens offers 1 to 3 bedroom luxury apartments and 2 to 3 bedroom townhouses. Homes overlook the fairways and provide access to charming gardens, infinity pools, indoor golf simulators and more.
Starting prices from AED 1,335,000.
CANAL HEIGHTS 2 de GRISOGONO – Luxurious designer studios to 4 bedroom apartments branded by the world-renowned de Grisogono jewelry company. Based along the Dubai Canal in Business Bay, the tower boasts avant-garde architecture near elite destinations like Downtown Dubai.
Starting prices from AED 2,624,000.
ELO 3 – Stylish 1 and 2 bedroom apartments in DAMAC Hills 2, the sprawling master community by DAMAC Properties. Residents can enjoy a vibrant neighborhood lifestyle with a luxury pool, gym, sports facilities, retail stores and entertainment for all ages.
Starting prices from AED 1,052,000.
Altitude de GRISOGONO – High-end designer apartments branded by de Grisogono overlooking Dubai Canal in popular Business Bay. Ranging from studios to 3 bedrooms, the tower offers next-generation wellness through relaxation pods, hydrotherapy and temperature controlled floatation.
Starting from AED 2,486,000.
Marbella Townhouses – Charming 4 and 5 bedroom Spanish-style townhouses featuring whitewashed exteriors, olive tree gardens and Andalusian-inspired architecture. Part of the upcoming DAMAC Lagoons Master Community by the Dubai Water Canal in Dubai.
Starting from AED 3,114,000.
Buyer Experiences and Success Stories
Salim, an Emirati professional, always aspired for a sea-facing apartment but lacked sufficient savings. DAMAC’s 1% plan fits his budget despite limited cash in hand now.
Over 3 years, he has already paid 50% of the apartment’s cost at DAMAC Casa through incremental payments and occasional bonuses. The rental yield covers his outflows with equity now financing the balance amount.
Similarly, expats like Victor benefitted from timely entries into Dubai Real Estate Market minus market timing risks. He purchased a studio at Canal Heights 2 during launch at a competitive price with modest monthly outlays, rather than prolonging decisions due to funds shortage.
As the project nears completion within 3 years, Victor’s portfolio value increased 70% fuelled by Dubai’s price growth, allowing him to upgrade to a bigger apartment in the same project to accommodate his family.
Conclusion
DAMAC Properties 1% payment plan has received a huge response from aspirant buyers and investors alike. By easing the constraints of high capital outlays, the plan brings luxury living within affordable reach through tailored payment options spanning 5 years.
Customers underline the flexibility and ownership experiences unlocked through minimal initial investments into Dubai’s thriving property landscape. Additionally, consistent pays off mortgages progressively while allowing interim benefits like occupancy or rental yields.
As Dubai sustains its drive towards becoming a global city, the value appreciation from prime districts translates into wealth generation for discerning buyers and investors. DAMAC’s 1% plan allows broader access to this boom for all seeking to call Dubai home.
