The parts of a payment plan
- Booking or down payment when you reserve and sign the SPA.
- Construction instalments, either on fixed dates or linked to construction milestones such as 20%, 40% or 60% completion.
- Handover payment, the balance due when the unit is complete and ready to hand over.
- Post-handover instalments on some plans, where part of the price is paid in instalments after you receive the keys.
Government fees are separate from the plan. In Dubai the DLD transfer fee is 4% of the price, and in Abu Dhabi DARI charges 2% of the contract value for an off-plan sale. Check in the SPA when these are due.
What the common labels mean
| Label | What it means | Who it suits |
|---|---|---|
| 60/40, 70/30, 50/50 | The share paid before completion / the share paid at handover. | Buyers who will pay the handover balance in cash or with a mortgage on the completed unit. |
| Construction-linked | Each instalment falls due when the project reaches a set completion percentage. | Buyers who want payments to follow real progress. |
| Post-handover | Part of the price is paid after you get the keys, over an agreed period. | Buyers who want to rent the unit while still paying for it. |
| 1% monthly | A small fixed share of the price every month. Danube Properties pioneered this style in Dubai. | Buyers with steady monthly income rather than a lump sum. |
These are labels, not standards. Two "60/40" plans can have very different booking amounts and dates, so compare the schedule line by line.
How the rules protect you
- Escrow. In Dubai, Law No. 8 of 2007 requires every off-plan payment to go into the project escrow account, and DLD releases money to contractors only as construction milestones are confirmed.
- Proof of progress. DLD says that when a payment is tied to a completion stage, you are entitled to know the completion percentage, confirmed in a letter from the DLD-approved project consultant, before you are obliged to pay.
- Registration. Dubai off-plan sales are recorded in the DLD interim register. Abu Dhabi off-plan sales must be registered on DARI within 21 days of signing.
Mortgages and payment plans
The Central Bank of the UAE caps mortgage lending on property bought off-plan at 50% of its value, for every type of buyer. Banks must also use the buyer's own equity first, paying the developer before any loan money is released, and payments must follow physically confirmed completion milestones. In practice most buyers pay the construction instalments from their own funds and, if they need a loan, finance part of the handover balance.
Once the property is complete, an expat buying a first home under AED 5 million can borrow up to 80% of its value, or up to 60% for a second or investment property.
Questions to ask before you sign
- What exactly is due at booking, including the DLD or DARI fee and any admin fee?
- Are instalments date-based or milestone-based, and what happens if construction is delayed?
- What is the penalty for a late payment, and when can the developer cancel?
- How much must be paid before you can resell (assign) the unit, and what does the developer charge for the NOC?
- For post-handover plans: is the post-handover balance secured on the property, and can you rent or sell before it is paid?
Frequently asked questions
What is a 60/40 payment plan in Dubai?
A 60/40 payment plan means you pay 60% of the price during construction, through a booking payment and instalments, and the remaining 40% at handover. The exact amounts and dates vary by developer and are set out in the SPA. The DLD transfer fee of 4% is paid separately from the plan, usually early in the purchase.
What is a post-handover payment plan?
A post-handover payment plan lets you pay part of the price after the property is completed and handed over, in instalments over an agreed period. It lets you move in or rent the unit before paying in full. Check whether the unpaid balance is secured on the property and what restrictions apply to reselling before it is cleared.
Can I get a mortgage on an off-plan property in the UAE?
Yes, but the Central Bank of the UAE caps off-plan mortgages at 50% of the property value for all buyers. Banks must use your own equity first and release loan money only against confirmed construction milestones. Many buyers pay construction instalments themselves and use a mortgage for part of the handover balance instead.
Are off-plan payments protected if the project is delayed?
In Dubai, off-plan payments go into a project escrow account under Law No. 8 of 2007, and money is released only as construction milestones are confirmed. If a project is cancelled, DLD's liquidation process asks the developer to refund investors. Your SPA sets out delay terms, so read those clauses before signing.
Get a shortlist for off-plan payment plans explained
Tell Tarek your budget, timeline and whether you want to live in the home, rent it out or apply for a Golden Visa. He will send matching launches and ready alternatives with the full cost of each, and check registration and escrow with you before you pay.
Sources
- Frequently Asked Questions (escrow, registration, brokers, service charges), Dubai Land Department. Checked 30 September 2026.
- Regulations Regarding Mortgage Loans (Circular 31/2013, as amended), Central Bank of the UAE Rulebook. Checked 30 September 2026.
- Off-Plan Unit Sale Registration (fees and 21-day rule), DARI Help Centre (ADREC). Checked 30 September 2026.
- Registering the Sale of a Mortgaged Property (fee schedule), Dubai Land Department. Checked 30 September 2026.