Off-plan payment plans in Dubai explained

How to read a payment plan

A plan written as 10/50/40 means: 10% is paid on booking, 50% during construction and 40% on handover. A plan with two numbers, such as 60/40, means 60% before the handover and 40% on it. The instalments during construction are tied either to dates or to construction stages.

The most common plans right now

Post-handover plans

In a post-handover plan a part of the price is paid after you receive the keys — over one to five years, without bank interest. You can move in or rent the home out while you are still paying. Right now 77 projects in Dubai offer such a plan.

Down payment

The down payment is usually 10–20%. In 330 projects it is 10% or less. Remember the 4% registration fee of the Dubai Land Department: it is paid at the start, on top of the down payment.

What to check in the plan

• Are the instalments tied to dates or to construction stages? With stages you pay only when the building really moves forward.
• How much is due on handover — this is the largest single payment, plan it in advance.
• From what paid share the developer allows a resale.

Questions and answers

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