Dubai’s real estate market offers two popular financing options for buyers – **developer payment plans** and **bank mortgages**. This guide compares both options with the latest 2024 data to help you make the best decision.
## 1% Monthly Payment Plans Explained
### How It Works–
✔ Pay just 1% of property value monthly
✔ Low 20-25% for downpayment)
✔ No bank approval required
✔ Interest-free instalments over 3-5 years
### Top Developers Offering 1% Plans
– **Emaar** – Downtown Dubai & Dubai Creek Harbour
– **Damac** – Akoya & Dubai Marina
– **Samana** – JVC & Business Bay.
– **Danube** – JVC & Arjan.
## Traditional Bank Mortgages in Dubai**
2024 Mortgage Rates
– **Expats:** 5.5-7.5% interest
– **Residents:** 4-6.5% interest
– **Loan Terms:** Up to 25 years
### Who Should Get a Mortgage?
✔ Long-term residents
✔ Buyers wanting immediate ownership
✔ Investors seeking higher financing (up to 80% LTV)
## Which is Better?
**Choose 1% Plan If:
– You want low initial payment
– Buying for investment
– Prefer no interest
**Choose Mortgage If:
– You plan to live in the property
– Need immediate ownership
– Can absorb interest rate.