Off-Plan Payment Plans in Dubai Explained

A payment plan is the schedule on which you pay a developer for a property that is still under construction. It is the main reason buyers choose off-plan, so it is worth understanding exactly what you are signing.

The common types

• Construction-linked. Instalments fall due as the building reaches milestones — for example 10% on booking, then payments at foundation, structure and so on, with the balance on handover. Written as “60/40”, it means 60% during construction and 40% on completion.
• Post-handover. Part of the price is paid after you receive the keys, over one to five years or more. Written as “50/50 with three years post-handover”, half is paid by completion and half afterwards.
• Time-linked. Fixed dates, such as 1% a month, regardless of construction progress.

What else you pay at the start

Besides the booking amount, you normally pay the 4% DLD fee and a small Oqood registration fee when you sign, unless the developer is covering them as an offer.

How your money is protected

• Escrow. By law, payments for an off-plan project go into a dedicated escrow account supervised by the regulator, and are released to the developer as construction progresses.
• Oqood. Your purchase is recorded in the DLD’s interim register until the title deed is issued at handover.
• The SPA. The Sale and Purchase Agreement sets the price, the plan, the expected completion date and what happens if either side defaults.

Questions to ask before you sign

1. Are payments tied to construction milestones or to dates?
2. What happens if I miss an instalment?
3. What is the anticipated completion date, and what does the SPA allow for delays?
4. Can I sell before handover, and how much must be paid first? Developers commonly require 30–40%.
5. Is the project approved for mortgage finance if I want to borrow for the final payment?
6. What are the estimated service charges?

Post-handover plans: the catch

They ease cash flow, and rent can help cover instalments — but prices for projects with long post-handover plans are often higher, and you do not hold a clean title deed until the developer is fully paid.

See current launches and their plans on our off-plan projects page, or read off-plan vs ready.

Fees and rules change. Confirm current figures with the Dubai Land Department (DLD) or your advisor before you commit — this guide is general information, not legal or financial advice.