How a payment plan works

  1. Booking (down payment): typically 10–20% of the price when you reserve the unit and sign the SPA.
  2. DLD fee: the 4% Dubai Land Department fee is usually paid at the start, when the purchase is registered in Oqood.
  3. Construction instalments: paid on set dates or when construction milestones are reached (for example, 20%, 40%, 60% completion).
  4. Handover payment: the balance due when the building is completed and you take the keys.
  5. Post-handover instalments (if any): paid monthly or quarterly after handover.

All instalments before handover go into the project's escrow account, regulated under Dubai Law No. 8 of 2007, not to the developer directly.

Common types of payment plans

Plan During construction On / after handover Who it suits
80/20 80% 20% on handover Cash buyers who want a small final payment
70/30 70% 30% on handover Balanced cash flow
60/40 60% 40% on handover Buyers planning to finance the handover payment with a mortgage
50/50 50% 50% on handover Investors who want to keep more cash until completion
Post-handover (e.g. 60/40 with 40% over 3 years) 60% 40% in instalments after handover Investors who want rent to help cover remaining payments
1% monthly About 1% per month Remainder on handover or after Buyers who prefer small, regular payments

Exact percentages differ for every project and are written in the SPA.

Worked example: AED 2,000,000 apartment, 60/40 plan

Stage % AED
Booking 10% 200,000
DLD fee (4%) + admin — 80,040
Instalments during construction (5 × 10%) 50% 1,000,000
Handover payment 40% 800,000
Total paid 100% + fees 2,080,040

With a post-handover plan, the 40% might instead be paid over 36 months after you get the keys — for example about AED 22,000 per month — while the unit can already be rented out. Use our investment calculator to model your own plan.

Construction-linked vs time-linked plans

  • Time-linked: instalments are due on fixed dates, whatever the construction progress.
  • Construction-linked: instalments are due when the developer reaches certified construction milestones. This protects you if the project is delayed: you do not pay ahead of the actual progress.

Many plans combine both. Check which one applies in your SPA.

Advantages of payment plans

  • Lower upfront capital: you secure a property with 10–20% plus fees.
  • Time to plan: spread payments over 2–5 years.
  • Possible growth before you finish paying: if prices rise during construction, your gain is on the full price, not only the amount paid.
  • Interest-free: developer payment plans usually have no interest, unlike a bank loan.
  • Golden Visa: since February 2026, off-plan property worth AED 2 million or more can qualify once registered in Oqood, without a minimum amount paid.

What to check before you sign

  1. The handover payment. A large final payment (40–50%) must be paid in cash or financed. Check early whether a bank will lend on that project.
  2. Post-handover terms. Are instalments interest-free? What happens if you sell the unit — must the balance be paid in full?
  3. Late payment penalties. The SPA sets fees for late payment, and Dubai law allows the developer to take action if a buyer defaults. Make sure the schedule fits your cash flow.
  4. Resale conditions. Many developers require a minimum share of the price to be paid (often 30–40%) before you can resell before handover. See selling off-plan before handover.
  5. The developer's delivery record — a payment plan is only as good as the developer behind it. See how to check a developer.
  6. Escrow details. The SPA should state the escrow account; all payments must go there.

Find a plan that fits your budget

Our off-plan catalogue shows the payment plan and handover date of every project, including post-handover options. Ask an SPI Dubai advisor to compare plans for your budget — we usually reply within 10 minutes.

This article is for general information only and is not financial or legal advice. Payment terms differ for each project; always read the SPA.

Sources: Dubai Law No. 8 of 2007 on escrow accounts; Dubai Land Department (Oqood registration, fees 2026); DLD circular on Golden Visa property requirements, 20 February 2026.