How Off-plan Payment Plans work in Dubai

Payment Plans

• What is the typical payment schedule for off-plan properties in Dubai?

  Off-plan properties in Dubai usually follow a construction-linked payment plan, making it easier for buyers to manage payments over time. A typical schedule includes:

  • 10% to 20% down payment at the time of booking
  • 60% to 70% paid in installments during construction, tied to project milestones
  • 10% to 30% on handover, depending on the developer
  • Optional post-handover plans (e.g., 1–3 years) offered by some developers

• How much is the initial down payment for an off-plan property in Dubai?

  The initial down payment for an off-plan property in Dubai usually ranges from 10% to 20% of the total price of the property. The exact amount depends on the developer and the payment plan offered. This payment is usually made upon signing the Sales and Purchase Agreement (SPA) and is required to reserve the unit.

• Are off-plan payment plans flexible or fixed?

  Off-plan payment plans in Dubai are generally flexible, with many developers offering various options to suit different buyer needs. While some plans are fixed and tied to construction milestones, others may include customizable schedules, post-handover payments, or extended installment plans.

• Do I have to pay the full amount before the off-plan property is completed?

  No, you don’t have to pay the full amount before completion. In Dubai, off-plan properties typically follow a construction-linked payment plan, where you pay in installments based on project progress. Many developers also offer post-handover payment plans, allowing you to pay a portion after receiving the property.

• What are post-handover payment plans and how do they work?

  Post-handover payment plans allow buyers to pay a portion of the property price after receiving the keys, making ownership more financially manageable. Examples:

  • 60/40 Plan: 60% during construction, 40% over 2 years after handover 
  • 70/30 Plan: 70% until handover, 30% over 3 years post-handover 
  • 80/20 Plan: 80% by handover, 20% over 1 year after possession 
  • 50/50 Plan: 50% during construction, 50% paid over 5 years post-handover 
  • 1% Monthly Plan: Pay 1% per month for 40 months after handover 

• Are there any hidden fees or charges in off-plan payment schedules?

  While the main payments cover the property price, buyers should be aware of additional fees that may apply, including:

  • Dubai Land Department (DLD) registration fees (typically 4% of the property price)
  • Developer’s service charges and maintenance fees
  • NOC (No Objection Certificate) fees for resale or mortgage
  • Mortgage processing fees and valuation fees (if financing)
  • Utilities connection fees