Payment plans · Dubai

Off-plan payment plans in Dubai

You spread the price across construction stages, and some developers let you pay even after handover. We show how the popular structures work and match a plan to your budget.

Match a payment plan All buyer routes

A payment plan is the schedule on which you pay the price of an off-plan property in instalments tied to construction, and sometimes after handover of the keys too. A well-chosen plan fits the outlay to your cash flow, but it does not replace an assessment of the project itself. We show you both.

At a glance

Reservation payment: usually from a few to several per cent
Popular splits: 40/60, 50/50, 60/40
1% monthly plan: available with some developers
Post-handover payment: yes, usually spread over 2 to 5 years
Instalments tied to: construction stages, not the calendar
DLD transfer fee 4%: sometimes part of an offer or spread
Oqood registration: off-plan entry at the DLD, at the SPA
Escrow account: under Law No. 8 of 2007
Resale before handover: usually after paying 30 to 40% of the price

The most common payment structures

Before you choose a project, it is worth comparing the payment structures themselves. A split such as 40/60 tells you what part of the price you pay during construction and what part at or after handover.

Below are the variants you'll meet most often. They differ above all in when most of the money leaves your pocket.

Popular off-plan payment plan structures in Dubai.
Structure	How it works	For whom
40/60	40% during construction, 60% at handover	buyers with cash for handover
60/40	60% during construction, 40% at handover	a lower final payment
1% monthly	a fixed, low instalment each month after the initial payment	spreading the outlay over time
Post-handover	part of the price paid after handover, usually 2 to 5 years	those counting on rent during repayment

Understanding these structures makes it easier to choose a plan that suits your cash flow. Let's match a structure to your budget and the pace at which you want to make payments.

How it looks in practice

Numbers say more than the name of a plan. Below we show an example 60/40 split, to illustrate the order of payments.

It is an illustration of the flow, not a specific offer. The exact thresholds are always set by the contract with the developer.

Reservation: an initial payment that takes the unit off the market.
During construction: further instalments as milestones are reached, up to 60% of the price in total.
At handover: the remaining 40% and taking the keys.
On the post-handover variant: part of that 40% spread into instalments after you have moved in.

The exact thresholds and timings differ between developers. Send us the project you are considering and we'll set out its payment flow before you sign the contract.

What to check in a payment plan

The size of the instalments is only part of the picture. Equally important are the contract clauses that decide what happens on a delay and where your payments go.

We always look at these details before you sign. It is in them that the costs not visible in the instalment table are hidden.

Whether the instalments are tied to construction stages, rather than a fixed calendar.
Whether payments go into the project's escrow account.
What the consequences are of a late payment on your side and of a construction delay on the developer's side.
Whether the DLD fee of 4% is on your side, spread, or part of an offer.
Whether a post-handover plan hides a higher base price in return for the convenience.

Careful reading of the contract protects you from costs not visible in the instalment table. Let's go over the payment plan together, point by point, before you sign.

A payment plan is not a discount

It is easy to choose a project simply because it has a convenient payment plan. Yet an attractive schedule is sometimes a way to sell a dearer unit, not a real reduction in price.

So we assess the developer, the location and the price against the market first. Only then do we match a payment plan that suits your cash flow. In that order, not the reverse.

This order means you pay for the value of the property, not for the convenience of the repayment alone. Let's assess the project and the plan together, in that very order, not the reverse.

The route from reservation to handover

An off-plan purchase passes through several steps, and each has its own document. It is worth knowing the order, because it sets when you pay.

Below is that same route, from the first form to the title deed. The timing of the instalments, meanwhile, is tied to construction progress, not the calendar.

Reservation form and initial payment: they take the unit off the market and set the terms of purchase.
The SPA: a binding document with the developer, with the full payment schedule, the handover date and the penalty clauses.
Oqood registration: entry of the off-plan contract at the Dubai Land Department, which records your right to the unit.
Instalments during construction: further payments as successive stages of work are reached.
Handover and title deed: the Oqood becomes a full title deed once the building is delivered.

Each of these steps is linked to a payment or a signature. We'll take you through them in order, from the form to the title deed.

Oqood, the DLD fee and the escrow account

With off-plan come formalities that are not there with a ready, second-hand home. Three of them are worth understanding, because they affect the cost and where your payments sit.

These are the Oqood registration, the DLD fee and the project's escrow account. Below is what each of them means.

Oqood: registration of the off-plan contract at the Dubai Land Department, usually at the signing of the SPA. It records your right to the unit before a title deed exists.
The DLD fee of 4%: charged on the price and paid once, at the Oqood stage. At handover the Oqood becomes a title deed with no second 4% fee.
The escrow account: a requirement of Law No. 8 of 2007. Payments go into an account run by the project's RERA-approved escrow bank.
Release of funds in stages: the developer draws money from escrow only once an independent engineer confirms each stage of construction.

These three elements decide how much you pay beyond the price itself and where your payments sit until handover. We'll check them for a specific project before you sign the SPA.

Resale before handover

An off-plan payment plan can be closed early by reselling the unit before the building is delivered. Such a transaction is an assignment of the contract and has its own rules.

It is not entirely free, however. Before you sell, you usually have to meet two conditions on the developer's side.

A payment threshold: many developers agree to an assignment only after about 30 to 40% of the price has been paid, and some require 50%.
An NOC: the developer's consent to transfer the contract to a new buyer. Without it, the assignment cannot be registered.
An assignment fee: the developer usually charges a commission of around 2 to 5% of the price, most often on the seller's side.
The SPA clauses: the exact threshold and costs are set by your contract, which is why we read it with the exit in mind from the start.

If you are considering a sale before handover, we'll check the assignment terms in the contract before you sign it. That way you know in advance when, and at what cost, you can exit.

FAQ

Frequently asked questions.

What are the 40/60 and 60/40 plans?

They are a split of the price between the construction period and handover. On 40/60 you pay 40% during construction and 60% at handover. On 60/40 the proportions are reversed. The first number is the part paid during construction.

What is a post-handover plan?

It is a plan where you pay part of the price after handover of the keys, usually spread over 2 to 5 years. It is sometimes chosen by buyers counting on rent during repayment.

Are the instalments tied to time or to construction?

On a legitimate project the instalments are tied to reaching construction stages, and payments go into an escrow account. We check this before signing the contract.

Does a low instalment mean a lower price?

No. A convenient plan is sometimes a way to sell a dearer unit. So we assess the price against the market first, and only then match a plan.

When do I pay the DLD transfer fee?

As standard, 4% at registration of the purchase. Some developers include it in an offer or spread it. We verify this for a specific project.

What is Oqood registration?

It is the entry of the off-plan contract at the Dubai Land Department, usually at the signing of the SPA. It records your right to the unit before a title deed exists. At handover the Oqood becomes a full title deed.

Do I pay the 4% DLD fee twice, at Oqood and at handover?

No. You pay the 4% on the price once, at the Oqood registration stage. At handover the Oqood becomes a title deed with no further 4% fee.

Where do my payments go during construction?

Into the project's escrow account, required by Law No. 8 of 2007 and run by a RERA-approved bank. The developer draws from it only once an independent engineer confirms each stage of construction.

Can I sell an off-plan property before handover?

Yes, through an assignment of the contract. Many developers require about 30 to 40% of the price to be paid first, along with an NOC. There is usually an assignment fee of around 2 to 5% of the price, most often on the seller's side.

Let's match a plan to your budget, starting from a good project.

You tell us about your budget and the pace you want to pay at. We'll put the rest together.

Match a payment plan Other buyer routes