By the MgtWell Property research desk. Reviewed for accuracy against official sources.
Payment plans are a big reason off-plan property is popular with international buyers. Instead of paying the full price at once, you pay in stages linked to dates or construction milestones. This guide gives Dubai payment plans explained in plain English: the common structures, worked examples, how to fund the handover balance and what to check in the contract.
Every developer designs its own plans, and terms vary project by project. The structures below are common patterns, not fixed rules.
Why payment plans exist
Developers use payment plans to sell units before and during construction. For buyers, they spread the cost over time. Your instalments are paid into the project's escrow account, which under Law No. 8 of 2007 can only be used for building that project.
Dubai payment plans explained: the main types
| Plan | During construction | At handover | After handover | Who it suits |
|---|---|---|---|---|
| 50/50 | 50% | 50% | None | Buyers wanting lower early outlay, with funds or mortgage ready for handover |
| 60/40 | 60% | 40% | None | Balanced approach, common in many launches |
| 70/30 | 70% | 30% | None | Buyers who prefer a smaller final payment |
| 80/20 | 80% | 20% | None | Cash buyers happy to pay most of the price early |
| Post-handover | Often 30% to 50% | Part payment | Balance over 1 to 5 years | Buyers who want to rent the unit while still paying |
| Construction-linked | Instalments tied to milestones | Balance | None | Buyers who want payments to follow progress |
The first number is the share paid before completion. It includes the booking deposit, usually somewhere around 10% to 20% of the price.
Upfront costs on top of the plan
Your first payment is usually larger than the deposit alone, because you also pay:
- 4% DLD fee, collected when the developer registers your sale on Oqood.
- Oqood and admin charges, set by the developer.
Banks generally do not finance these, so budget them in cash. Our Dubai property buying costs guide lists each fee.
Worked example: 60/40 plan on an AED 1,200,000 unit
This is an illustration only. Real schedules differ.
| Stage | Share | Amount (AED) |
|---|---|---|
| Booking (on signing) | 10% | 120,000 |
| DLD fee (paid alongside booking) | 4% | 48,000 |
| Instalments during construction (for example, five of 10%) | 50% | 600,000 |
| Paid before handover | 60% | 720,000 |
| Handover payment | 40% | 480,000 |
| Total price | 100% | 1,200,000 |
Plus admin charges at booking, and title deed, utility deposits and service charges at handover.
Worked example: post-handover plan on an AED 1,200,000 unit
| Stage | Share | Amount (AED) |
|---|---|---|
| Booking | 10% | 120,000 |
| During construction | 30% | 360,000 |
| At handover | 10% | 120,000 |
| After handover, over 3 years (36 monthly payments) | 50% | 600,000 (about 16,667 per month) |
With a post-handover plan, you can rent the unit while paying the developer. Check whether the expected rent, after service charges, actually covers the monthly instalment. With rents softening in some areas in 2026 (Savills reported double-digit year-on-year falls in parts of Dubai Marina and Business Bay in Q3), do not assume rent will cover it.
How to fund the handover payment
The handover balance is where many buyers get caught out. Your options:
- Cash. Simplest, no lender approval needed.
- Mortgage at handover. Once the unit is complete, you can apply to a bank. Residents can borrow more than non-residents, and the bank values the property at that time. Start the process two to three months before handover. See Dubai mortgages for non-residents.
- Post-handover plan. The developer finances part of the price after handover, often without a separate interest charge, though the price on these plans may be higher. Check the SPA.
- Resale before handover. Some buyers sell (assign) the unit before completion. Developers usually require a minimum share of the price paid first and may charge a fee.
If you plan to use a mortgage, remember the bank lends on its own valuation. If the valuation is below your purchase price, you fund the gap.
What happens if you miss a payment
Read the default clause carefully. Most SPAs include late payment charges. For serious default, Dubai law (Article 11 of Law No. 13 of 2008, as amended in 2017) requires the developer to go through the Dubai Land Department, which gives the buyer 30 days to pay or settle. After that, depending on how complete the project is, the developer may terminate and keep up to 25% (under 60% complete) or 40% (60% complete or more) of the price, as reported by Khaleej Times in October 2026. Our guide to how Dubai escrow law protects off-plan buyers covers the full table.
Questions to ask before choosing a plan
- Are instalments date-based or milestone-based? Milestone plans move with real progress.
- Is the DLD fee included or extra?
- What is the anticipated completion date and the grace period?
- What late fees apply?
- Can I assign or resell before handover, and after what percentage paid?
- For post-handover plans, is the price the same as a standard plan?
- What happens to the post-handover balance if I sell after handover?
Tips for overseas buyers
- Keep a 6-month buffer. Currency moves and life changes can affect your ability to pay.
- Set reminders for each instalment and allow time for international transfers.
- Pay only into escrow, matching the account in your SPA.
- Watch currency risk. The dirham is pegged to the US dollar, so buyers paying in pounds, euros or rupees face exchange-rate swings.
- Compare total cost, not just the headline plan. A generous post-handover plan may come with a higher price per square foot.
General information, not tax/legal advice. Speak to a qualified adviser in your country.
How MgtWell helps
We compare payment plans across projects, model the cash you need at each stage, and track your instalments through to handover. Learn more about our off-plan investment service or try our calculators.
Frequently asked questions
What does a 60/40 payment plan mean in Dubai?
You pay 60% of the price during construction, including the booking deposit, and the remaining 40% at handover. The handover balance can be paid in cash or, for eligible buyers, with a mortgage.
What is a post-handover payment plan?
It lets you pay part of the price after you receive the keys, typically spread over one to five years in monthly or quarterly instalments directly to the developer.
Is the 4% DLD fee included in the payment plan?
Usually not. The 4% DLD fee is normally paid upfront when the purchase is registered on Oqood, on top of the booking deposit. Some developers run offers covering part of it, so check your SPA.
What happens if I miss a payment plan instalment?
Developers may charge late fees under the SPA. For prolonged default, Dubai law lets the developer follow a DLD notice process and, depending on project completion, terminate and retain up to 25% or 40% of the price.
- Real Estate Club Dubai: Dubai developer payment plans explained
- Khaleej Times: Missed off-plan payments in Dubai? Here's what your developer can legally do (Oct 2026)
- Khaleej Times: How expats can take out mortgage loans in the UAE
- Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development in Dubai
- Khaleej Times: Rents in Dubai fall over 12% (Savills Q3 2026)
Last reviewed October 2026. General information, not financial, tax or legal advice.
