FGX Realty
Off-plan launches in Dubai are marketed by their payment plan as much as by their floor plans: 60/40, 70/30, 1% a month, three years post-handover. The labels are short, but the cash flow behind them can be very different. This guide explains how to read a plan, what is due at booking, how instalments are tied to construction, and the SPA clauses to check before you commit.
How to read a payment plan
The two numbers describe when you pay the price, not how much you pay in total.
- The first number is the share paid before completion, usually including the booking instalment.
- The second number is the share paid at handover, or after it if the plan is post-handover.
So a 60/40 plan means 60% of the price is paid during construction and 40% when the building is complete. The 4% DLD registration fee is extra and is usually due at the start. Developers also differ in whether "60" includes the booking deposit, so always ask for the full schedule in dirhams and dates, not the summary.
The common structures
| Plan | Before completion | At or after handover | What it means for you |
|---|---|---|---|
| 80/20 | 80% | 20% at handover | Heavy payments during construction, small final balance |
| 70/30 | 70% | 30% at handover | Balanced, final payment often within reach of savings |
| 60/40 | 60% | 40% at handover | Large final payment, often funded with a mortgage |
| 50/50 | 50% | 50% at handover | Light construction phase, very large final payment |
| Post-handover | Often 30% to 60% | The rest in instalments after the keys | The developer is effectively lending you the balance |
There is no standard plan. The split, the size of each instalment and whether they are tied to dates or construction stages are set project by project and sometimes negotiated unit by unit.
What you pay at booking
- The booking instalment, commonly between 5% and 20% of the price depending on the plan.
- The DLD registration fee of 4% of the full price. The sale has to be registered on DLD's interim register (Oqood), and the fee is normally paid at this stage. Some developers absorb part or all of it as a launch incentive.
- Registration and admin charges, a modest DLD charge plus the developer's own admin fee, which should be itemised on the booking statement.
UAE residents buying their first home under AED 5 million can join DLD's First-Time Home Buyer Programme, which offers interest-free instalments on DLD registration fees through eligible credit cards, alongside priority access and preferential prices with participating developers.
Construction-linked or date-linked instalments
Construction-linked plans set instalments at stages such as 20%, 40% or 60% completion, as certified by the project consultant. If the build slows, your payments slow with it. That keeps your money roughly in step with what has been built.
Date-linked plans set fixed dates, for example every three or six months, regardless of progress. They are easier to budget for, but if construction falls behind you will have paid ahead of the building.
In both cases your instalments go into the project's escrow account, which Dubai's Law No. 8 of 2007 reserves exclusively for building that project and protects from the developer's creditors. You can check a registered project's completion percentage and escrow details through DLD's project status service in the Dubai REST app, and you should compare that progress with the payment schedule as you go. More on the legal protections is in how Dubai protects off-plan buyers.
Worked example: an AED 1,800,000 apartment on three plans
Assume a three-year build. All figures in AED.
| Stage | 70/30 plan | 60/40 plan | 50/50 post-handover |
|---|---|---|---|
| Booking instalment | 360,000 (20%) | 180,000 (10%) | 180,000 (10%) |
| DLD fee (4%) | 72,000 | 72,000 | 72,000 |
| During construction | 900,000 (50%) | 900,000 (50%) | 720,000 (40%) |
| At handover | 540,000 (30%) | 720,000 (40%) | 0 |
| After handover | 0 | 0 | 900,000 (50%) over 36 months |
| Cash before the keys | 1,332,000 | 1,152,000 | 972,000 |
Three things stand out:
- The 60/40 buyer needs AED 720,000 on one date. That is either savings or a mortgage, and a bank will lend against the unit's valuation at handover, not its launch price.
- The post-handover buyer pays AED 25,000 a month for three years after the keys. A typical rent on a unit at this price is unlikely to cover that, so the plan needs other income behind it.
- The total price is the same in every column, unless the developer charges more for the longer plan, which is common. Compare the price per square foot across plans before deciding the flexibility is free.
Post-handover plans: the fine print
Post-handover plans let you take the keys, and potentially start earning rent, before the unit is paid off. They are useful, but read the conditions:
- Ownership while you are still paying. Developers usually keep a restriction over the unit, or hold back the final title deed, until the balance is cleared. Check exactly what is registered in your name at handover.
- Selling or refinancing early. You will need the developer's clearance and a statement of the outstanding balance. Banks can refinance post-handover balances on completed units, but terms vary.
- The price of flexibility. The plan is rarely labelled as interest-bearing, but longer plans are often attached to higher prices.
- Default. Missing instalments carries the same consequences as before handover, set out in the next section.
What happens if you miss payments
Dubai law sets out a formal process. Under Article 11 of Law No. 13 of 2008, as replaced by Law No. 19 of 2020, the developer must notify DLD, which gives the buyer 30 days' notice to pay and may try to mediate. If the buyer still does not pay, what the developer may do depends on how far the project has progressed:
| Project completion | What the developer may do |
|---|---|
| Over 80% | Keep the contract and claim the balance, ask DLD to auction the unit, or terminate and keep up to 40% of the price |
| 60% to 80% | Terminate and keep up to 40% of the price |
| Below 60% (work started) | Terminate and keep up to 25% of the price |
Any excess must be refunded within a year of termination or within 60 days of the unit's resale, whichever is earlier. These are statutory limits; your SPA may also contain late payment charges, so read both.
Currency and timing risk for overseas buyers
Instalments are fixed in dirhams. If your income or savings are in another currency, a multi-year plan is also a multi-year currency exposure, and the dirham's peg to the US dollar means buyers earning in other currencies carry most of that risk. Two habits help. Keep a buffer for the next two or three instalments in a UAE or dollar account, so a bad month for your currency does not force a transfer at the wrong rate. And put every due date in your calendar with the escrow account details next to it, because late payment charges and the default process apply regardless of where you live.
What to check in the SPA before you sign
- Unit details: unit number, floor, parking, and the area with how it is measured.
- Payment schedule: every instalment in dirhams, its trigger (date or construction stage) and how stages are certified.
- Escrow details: the RERA project number and escrow account number. Pay only into that account.
- Completion date: the anticipated date, the grace period, and any compensation for delay.
- Late payment and default: charges, notice periods and how they relate to the statutory process.
- Resale conditions: the percentage you must pay before you can sell, and the developer's NOC charges.
- Area variance: what happens if the delivered area differs. By law the developer cannot charge more for a larger unit and must compensate you for a smaller one, unless the difference is inconsequential.
- Specifications: finishes, appliances and the developer's right to substitute equivalents.
- Handover conditions: final payment, service charges in advance and utility connections.
- Fees and incentives: who pays the DLD and admin fees, and any waiver promised in marketing, written into the contract.
A payment plan is a cash flow schedule, not an affordability test. Stress test the largest single payment, usually the handover balance, before you book.
Frequently asked questions
Is the 4% DLD fee always paid at booking?
Usually, because the sale has to be registered on Oqood. Some developers cover part or all of it, or allow it to be spread, as a launch incentive. Get any such arrangement in writing.
Can I pay instalments early?
Many developers accept early payment, and some offer a discount for it. Ask before you book, because it affects which plan is best for you.
Can I use a mortgage for the handover payment?
Often yes, if banks have approved the project. Once the building is complete, banks generally assess the unit as a ready property. Confirm early, using our mortgage guide as a checklist.
Are post-handover plans interest-free?
They are rarely described as carrying interest, but the cost of the extended terms may be reflected in a higher price. Compare the price per square foot with similar units on shorter plans.
Which plan is best?
The one whose largest payment you can make comfortably on its due date. For many investors that is a 70/30 or 60/40 plan with a confirmed route to a handover mortgage. For others, especially buyers relying on future income, a post-handover plan fits better. Our comparison of off-plan vs ready property covers the wider decision.
Official sources
- Law No. 8 of 2007 on escrow accounts%20of%202007%20Concerning%20Escrow%20Accounts%20for%20Real%20Estate%20Development%20in%20the%20Emirate%20of%20Dubai.html)
- Law No. 19 of 2020 on off-plan contract default%20of%202020%20Amending%20Law%20No.%20(13)%20of%202008%20Regulating%20the%20Interim%20Real%20Property%20Register%20in%20the%20Emirate%20of%20Dubai.html)
- DLD First-Time Home Buyer Programme
Next step
If you are comparing launches, an FGX advisor can lay out the full schedule for each one side by side, including the handover balance and the cash you need month by month. Browse current projects on our listings or by developer, or book a call to go through a specific plan.
This guide is general information, not legal, tax or financial advice. Rules and fees change; confirm current figures with the Dubai Land Department or your advisor before you commit.
