How Dubai off-plan payment plans work
When you buy off-plan you pay the developer in stages instead of all at once. A small part goes down at booking, more is paid while the building goes up, and the rest is due when you get the keys. Some developers also let you keep paying after handover, which is called a post-handover plan.
Plans are described with two numbers. A 60/40 plan means 60% is paid before handover and 40% on or after it. The split matters because the handover amount is usually the largest single payment, and it is the one most people fund with a mortgage.
Do not forget the 4% DLD fee
The Dubai Land Department transfer fee applies to off-plan sales too. It is normally paid with the booking instalment, so your first payment is bigger than the plan suggests. On a AED 2 million unit with 20% at booking, the first transfer is about AED 480,000, not AED 400,000. This calculator adds it automatically.
Worked example
A AED 2,000,000 apartment on a 60/40 plan with quarterly instalments and handover in 36 months:
| Stage | Amount |
|---|---|
| Booking: 20% + 4% DLD fee + admin | AED 480,250 |
| Construction: 40% over 11 quarterly instalments | AED 72,727 each |
| Handover: 40% | AED 800,000 |
| Total paid | AED 2,080,250 |
Checking a plan before you sign
Make sure the percentages add up to 100. Ask whether construction instalments are tied to dates or to build progress. Confirm that payments go into the project's registered escrow account, and get the handover date in writing. If you plan to use a mortgage for the final payment, speak to a bank early, since off-plan lending rules are stricter than for ready homes.
Frequently asked questions
What is a typical off-plan payment plan in Dubai?
Common plans are 60/40, 70/30 and 80/20, where the first number is paid during construction and the second at handover. Post-handover plans spread part of the balance over one to five years after you receive the keys.
When do I pay the 4% DLD fee on off-plan?
Usually at booking, together with the first instalment. The developer registers the sale on Oqood once both are received.
Can I get a mortgage for the handover payment?
Yes. Many buyers pay the construction instalments in cash and take a mortgage for the handover amount. Banks typically lend on completed value once the building is ready.
What happens if construction is delayed?
Instalments linked to construction progress move with the build. Instalments fixed to dates do not. Check your sales agreement to see which type you have, and keep payments in the project escrow account only.