Compare the main off-plan plan structures by the cash you need before, at and after the keys, and the questions to ask the developer.
Every off-plan launch in Dubai comes with a payment plan, and the plan often matters as much as the price. It decides how much cash you need and when, how exposed you are if the building runs late, and how soon you could sell. This article compares the main plan structures side by side, so you can see what each one asks of you over time.
For the mechanics of escrow, registration and mortgages, our payment plans guide covers the detail. Here the focus is choosing between plans.
What are the 4 common payment plan structures?
Most off-plan payment plan types in Dubai fall into four groups: a construction-weighted split such as 60/40, a handover-weighted split such as 40/60, a post-handover plan that runs past the keys, and a monthly plan often marketed as 1% a month. Each spreads the same price differently across time.
Construction-weighted splits (60/40, 70/30)
With a 60/40 payment plan, you pay 60% of the price between booking and completion and the remaining 40% when the unit is handed over. A 70/30 plan pushes even more of the price into the build. You commit more cash early, but the amount left to find at the keys is smaller, which can make a mortgage at handover easier to size.
Handover-weighted splits (50/50, 40/60)
These plans keep more of your money in your pocket until the building is finished. The trade-off is a large single payment at completion. If you plan to fund that payment by selling another property or taking a mortgage, start that process well before the handover date.
Post-handover plans
Here part of the price is paid to the developer after you receive the keys, over an agreed number of months or years. It lowers the cash you need before completion, but the obligation continues once you own the unit.
Monthly plans (often “1% a month”)
Some developers express the instalments as a fixed percentage of the price each month. The arithmetic is simple: 1% a month is 12% of the price a year, so 60 monthly instalments add up to 60% of the price. Check whether those instalments run during construction, after handover, or both, and what lump sums sit around them.
Who do post-handover plans suit?
A post-handover payment plan suits you if you want the keys with less cash committed, and if you are confident about your income for several years after completion. It can also suit investors who expect rent to cover part of each instalment, provided they can keep paying when the unit is empty.
Before you choose one, weigh three points:
- Total price. A longer plan can come with a higher price than the same unit on a shorter plan. Ask the developer for both versions and compare the totals, not only the monthly figure.
- Your obligations after the keys. The instalments are owed whether or not you find a tenant. Budget them alongside service charges.
- Title and resale. Find out when you receive the title deed, whether the unit stays charged to the developer until the final instalment, and how a sale partway through would work. The answers sit in the sale and purchase agreement (SPA).
A post-handover plan is an arrangement with the developer, not a bank loan, so it is worth comparing with the alternative of a mortgage at completion. The guide explains how the Central Bank’s limits work; for an off-plan purchase the loan-to-value cap is 50%.
What happens to a construction-linked plan if work is delayed?
In a construction-linked payment plan, each instalment falls due when the building reaches a stage, not on a calendar date. That ties your money to visible progress, so if work slows, your payments slow with it. On a date-linked plan, the dates usually stand even if the site falls behind.
What happens if construction is delayed?
Your SPA sets out what happens if handover slips: the grace period, any compensation and your options. Read that clause before you reserve. On a date-linked plan you may keep paying on schedule while the handover date moves, which is the main reason many buyers prefer stage-linked instalments.
Checking progress before you pay
For a stage-linked instalment in Dubai, ask for the project consultant’s completion letter confirming the percentage reached before you pay. You can also follow a project’s progress through the Dubai Land Department’s project status service. Whatever the plan, every payment should go only to the project’s escrow account named in your SPA.
How do you review two plans side by side?
To compare two plans fairly, line them up on three numbers: the cash you need before the keys, the cash you need at the keys, and anything you still owe after them. Add the 4% Dubai Land Department fee to the first number, because it is usually due at signing.
Illustrative example only, not a real project. Take a unit priced at AED 1,200,000, where the SPA places the full 4% registration fee (AED 48,000) on you.
| Plan A: 60/40, stage-linked | Plan B: 40/60 with post-handover | |
|---|---|---|
| Booking (10%) | AED 120,000 | AED 120,000 |
| During construction | AED 600,000 (50%) | AED 360,000 (30%) |
| Registration fee (4%) | AED 48,000 | AED 48,000 |
| Cash before the keys | AED 768,000 | AED 528,000 |
| At handover | AED 480,000 (40%) | AED 360,000 (30%) |
| After handover | None | AED 360,000 (30%), for example AED 10,000 a month for 36 months |
Both plans add up to the same AED 1,200,000 price plus the fee. Plan B needs AED 240,000 less before completion, but leaves you with three years of instalments after the keys. If the developer prices Plan B higher, add the difference to its total before deciding.
Which plan suits an investor?
No single structure suits every investor. If you want to resell before completion, a construction-weighted plan reaches the developer’s resale threshold sooner. If you plan to hold and let, a post-handover plan can ease cash flow, as long as the rent and your reserves cover the instalments. Run your own figures through both.
Can you sell before you finish paying?
Usually yes, once the developer agrees. Developers set a minimum share of the price that must be paid before they issue a no-objection certificate for a resale, and they expect your instalments to be up to date. The threshold varies by developer, so ask for it in writing. Our guide to selling before handover walks through the costs.
What should you check with the developer?
Before you reserve, put the same short list of questions to every developer you are considering. The answers turn a brochure plan into numbers you can compare, and they show you how the developer handles the details that matter when something changes.
- Is each instalment linked to a date or to a construction stage?
- Is the price the same on a shorter plan, and if not, what is the difference?
- Who pays the 4% registration fee, and when is it due?
- What share of the price must be paid before you allow a resale, and what is your transfer fee?
- When is the title deed issued on a post-handover plan, and do you keep a charge over the unit?
- What does the SPA say about late handover and late payments?
Ask for the reservation form and payment schedule for the exact unit. The brochure plan is a summary; the binding schedule is the one attached to your SPA. Developer pages such as Emaar, DAMAC and Sobha group each developer’s launches, so you can see the plans they offer side by side.
Where can you read more?
Once you have a preferred structure, the next step is to see it on real launches and to understand every cost around it. You can filter projects by handover year, read how fees build up between booking and keys, and set plans in different communities side by side before you shortlist. For the choice of area itself, our guide to choosing between Dubai communities sets out the factors to score each one on.
- Browse launches by completion year: handover in 2027 or 2028 and later.
- See every fee between booking and keys in the true cost of buying off-plan.
- Compare plans within one community, for example on our Jumeirah Village Circle or Dubai Creek Harbour area pages.
FAQ
What is a post-handover payment plan?
It is a plan where part of the price is paid to the developer after you receive the keys, over an agreed period. It reduces the cash you need before completion, but you keep paying instalments once you own the unit, whether or not it is let.
Is a 1% monthly payment plan worth it?
It can be, if the monthly figure fits your income for the whole term. Remember that 1% a month is 12% of the price each year. Compare the total price with a shorter plan for the same unit, and check what lump sums fall at booking and at handover.
Is a payment plan better than a mortgage?
They do different jobs. A payment plan is a schedule agreed with the developer in your SPA. A mortgage is a bank loan, and lending on off-plan property is capped at 50% of the value. Many buyers use the plan during construction and a mortgage at handover.
What if handover is delayed on my plan?
On a stage-linked plan, your instalments follow construction, so they usually slow down too. On a date-linked plan, you may still owe them on their dates. Your SPA sets out the grace period and your options, so read it before you reserve.
Do I pay the registration fee on top of the plan?
Yes. The Dubai Land Department fee of 4% of the price is separate from the plan and is usually paid at signing. Check your SPA to see who it places the fee on.