Off-Plan Payment Plans and Finance in Dubai

Off-plan payment plans spread the price over construction and sometimes beyond handover. Map every instalment against your cash, remember the 4% DLD fee and the handover payment, and check early whether a bank will lend at handover and how much.

Updated 27 October 2026 · 1 min read

A payment plan tells you how much to pay and when. The common pitfall is the large payment due at handover: make sure you can fund it in cash or that a bank will lend against the finished unit.

Common plan structures

Plan How it works Watch out for
Construction-linked Instalments due at construction milestones Payments may come faster or slower than expected
Time-based Instalments on fixed dates You may pay ahead of actual progress
Handover-heavy (e.g. 50/50) Smaller payments during construction, a large one at handover Needs cash or a mortgage at completion
Post-handover Part of the price paid after you receive the keys Monthly commitments while you may also pay service charges

Planning your cash flow

  1. List every payment

    Booking, DLD fee, each instalment, handover payment and any post-handover amounts, with dates.

  2. Add the extras

    Developer admin fees, service charges from handover, DEWA deposits and furnishing.

  3. Test the handover payment

    If you plan to borrow, ask a bank now what it would lend on a completed unit of this value. For expatriates, lending on property that is still under construction is usually limited to 50%, and banks lend only near or after completion. See our mortgage guide.

  4. Keep a buffer

    Hold back cash for delays, valuation gaps and fit-out.

Common mistakes to avoid

  • Choosing a plan for the low deposit without planning the handover payment.
  • Missing instalments: late-payment penalties and cancellation rights are in the SPA.
  • Assuming the bank’s valuation will match the purchase price.

This guide is general information, not legal, tax, financial or lending advice. Fees, rules and procedures change and depend on the property, the parties and the contract. Confirm current details with the relevant authority and qualified advisers before acting.

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Common questions

What is a 60/40 payment plan?

You pay 60% of the price during construction and 40% at handover. Other ratios work the same way.

Can I use a mortgage for an off-plan property?

Usually at or near completion. Banks lend on the completed unit, often at lower ratios for property still under construction, so many buyers pay construction instalments in cash.

What happens if I miss an off-plan instalment?

The SPA sets out penalties and the developer's rights, which can include cancellation. Contact the developer early if you expect a problem.

Keep reading

Sources

Still not sure where to start?

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