Object 1 Projects: A Practical Guide for Overseas Investors

Who Is Object 1 and What Do They Build?

Object 1 is a UAE-registered developer focused on affordable-to-mid-range residential units, primarily studios, one-bedroom and two-bedroom apartments. Their projects tend to sit in the AED 500,000–AED 1,200,000 bracket, making them accessible for first-time Dubai investors and buyers who want multiple units across a portfolio rather than a single premium asset.

Key characteristics of Object 1 projects:

• Unit sizes: Studios from roughly 380–450 sq ft; one-beds from 650–800 sq ft; two-beds from 950–1,200 sq ft depending on the project.
• Locations: Primarily Jumeirah Village Circle, Arjan and Dubai Land — all established freehold zones where foreign nationals can hold 100% ownership.
• Finishes: Mid-range specifications with branded kitchen appliances included as standard in most launches.
• Handover timelines: Typically 24–36 months from launch, though buyers should review the specific Sales and Purchase Agreement for contractual delivery dates.

Object 1 is not in the same tier as Sobha or Binghatti in terms of brand recognition, but their price points attract strong tenant demand from young professionals, which supports rental occupancy.

Payment Plan Structure: What to Expect

Object 1 projects generally follow the off-plan payment structure standard across Dubai's mid-market developers. Al Kareem Properties works with buyers on plans that typically look like this:

• Down payment: 20% on booking/signing the Sales and Purchase Agreement.
• Construction instalments: Approximately 1% per month interest-free during the build period, linked to construction milestones or a fixed monthly schedule depending on the project.
• On handover: The remaining balance (commonly 30–40%) is due at key handover, though some projects offer a post-handover element.

These are interest-free developer plans, not bank mortgages, which removes the need for UAE bank approval during the construction phase. That said, if you intend to refinance or take a mortgage at handover, UAE banks typically lend up to 50% LTV for non-residents on completed properties, and you will need a valuation and income documentation.

Always confirm the exact milestone schedule in the SPA before signing. Construction delays in off-plan are not uncommon across the Dubai market — build in some personal cashflow flexibility around the handover date.

Costs You Must Budget For Before You Buy

The purchase price is only part of the outlay. Here is a realistic cost breakdown for an Object 1 property purchased at, for example, AED 800,000:

Service charges are paid annually to the building's management company regardless of whether the unit is tenanted or vacant. For Object 1 projects in JVC, service charges typically run AED 10–15 per sq ft per year — confirm the exact RERA-registered rate for the specific building before signing.

There is no UAE capital gains tax, no UAE income tax on rental earnings and no UAE inheritance tax on property. However, your home country may tax offshore rental income or gains — residents of the UK, USA, Australia and India should take local tax advice. See our guides for UK investors, US investors, Australian investors and Indian investors.

Rental Yields and Realistic Net Returns

Al Kareem Properties tracks gross rental yields of 10–11% in high-performing freehold areas of Dubai. Object 1's primary locations — particularly Jumeirah Village Circle — sit within this range for studios and one-bedroom units, which are in strongest tenant demand.

To illustrate with conservative figures on an AED 800,000 one-bedroom:

• Gross annual rent: AED 72,000–88,000 (9–11% gross yield)
• Annual service charge: AED 10,000–14,000
• Property management fee (if using an agent): 5–8% of rent, roughly AED 4,000–6,500
• Estimated vacancy allowance (1–2 months): AED 6,000–7,500
• Realistic net return: Approximately 6.5–8% depending on occupancy and management costs

A net yield of 6.5–8% remains competitive against most global residential markets, but do not base a purchase decision on gross figures alone. Vacancy is real, especially during the off-plan period before handover when the unit cannot yet be rented. Factor in at least one to two months of vacant periods per year in your modelling.

The Dubai Golden Visa: Does an Object 1 Property Qualify?

Dubai's 10-year Golden Visa is available to property buyers who purchase at a value of AED 2,000,000 or more. A single Object 1 unit, which typically starts below AED 1,200,000, will not meet this threshold on its own.

However, there are two routes investors take:

• Combined portfolio: Purchasing two or more Object 1 units with a combined value reaching AED 2M. The DLD recognises the aggregated value provided the properties are completed or near-completion and registered in your name.
• Mixing developers: Pairing an Object 1 unit with a higher-value Sobha or Binghatti property to reach the AED 2M minimum.

It is worth noting the Golden Visa for off-plan properties requires the unit to be fully paid up to AED 2M — not just contracted at that value. During the construction payment plan phase, only the amount actually paid to the developer counts toward the threshold in practice.

For full visa eligibility details, see our Dubai Golden Visa through property investment guide. Al Kareem can advise on structuring a portfolio that reaches the AED 2M threshold efficiently.

How to Buy an Object 1 Property Remotely

Al Kareem Properties is set up specifically to handle the full purchase process for overseas clients. Most investors complete their Object 1 purchase without travelling to Dubai. The typical remote process runs as follows:

• Step 1 – Shortlist and reserve: Al Kareem presents available Object 1 units based on your budget and yield targets. A refundable or non-refundable reservation deposit (typically AED 5,000–10,000) secures the unit while documents are prepared.
• Step 2 – SPA review: The Sales and Purchase Agreement is shared digitally. We strongly recommend having a UAE-qualified solicitor review it before signing, particularly clauses on delay penalties and handover conditions.
• Step 3 – DLD registration: The 4% DLD fee and admin costs are paid and the property is registered in your name on the Dubai Land Department's system. You receive an e-title deed.
• Step 4 – Ongoing payment plan: Monthly or milestone payments are made via international bank transfer. Al Kareem provides a payment tracker and liaises with the developer on your behalf.
• Step 5 – Handover and tenanting: At handover, Al Kareem can connect you with property management services to list, tenant and manage the unit remotely.

Contact the team on +971 50 964 1454 to begin the shortlisting process.

Key Risks and Honest Caveats

Object 1 projects offer genuine value for budget-conscious investors, but the following risks are worth stating plainly:

• Developer track record: Object 1 is an active but relatively newer developer compared to Sobha or established names. Review completed project delivery history before committing.
• Construction delays: Off-plan handover delays of six to twelve months are common across the Dubai market. Budget for this in your cashflow plan.
• Resale liquidity: Mid-market JVC and Arjan units are liquid compared to ultra-luxury stock, but resale timelines of two to four months should be assumed, not days.
• Service charge escalation: RERA regulates service charges, but they do increase over time. Factor in annual increases of 3–5% in long-term modelling.
• Currency risk: The AED is pegged to the USD, which benefits US investors but creates exchange rate exposure for GBP, AUD and INR buyers. Rental income and resale proceeds are paid in AED.
• Home-country tax: UAE levies no tax on property income or gains, but your country of tax residence may. Take independent tax advice before purchasing.

Al Kareem's role is to give you an accurate picture, not just a positive one. Speak to us on +971 50 964 1454 for a candid assessment of any specific Object 1 project.