Construction-linked
Instalments tied to build milestonesYou pay as the project hits stages (foundation, structure, MEP, handover). Payments slow if construction slows — the most buyer-aligned structure because cash follows progress.
Finance guide
Developer payment plans
Off-plan in Dubai is sold on the payment plan as much as the unit. The structure decides your cash flow, your financing pressure, and how protected you are if the build slips. Here's how the common plans work, the terms that matter, and what to confirm before you sign.
The common plan structures
Time-linked
Fixed dates regardless of buildInstalments fall on a calendar (e.g. every 3 months) independent of construction pace. Simpler to budget, but you can be paying ahead of actual progress — check the escrow protection.
60/40 (and 50/50, 80/20)
Split between build phase and handoverHeadline split of total price: e.g. 60% across construction, 40% at handover. The first number is paid before keys; the second on completion. Lower handover share = more financing pressure earlier.
1% monthly
Small recurring instalmentsA marketing-friendly structure: ~1% of price per month after a down payment. Stretches the build-phase outflow but usually still ends with a large handover balloon — read the full schedule, not just the monthly figure.
Post-handover
Payments continue after you get keysA share of the price (e.g. 20-40%) is paid in instalments for 2-5 years after handover — sometimes while you already collect rent. Attractive for cash flow; confirm whether it is developer-financed and any premium baked into the price.
Terms on the schedule
The vocabulary that appears in your SPA and payment plan — know these before the sales floor uses them.
| Term | What it means |
|---|---|
| Down payment / booking | The first 5-20% to reserve the unit and sign the SPA. Often includes the 4% DLD registration fee separately. |
| Handover payment | The final tranche due on completion. If you plan to mortgage it, this is where the bank's funds (and your pre-approval) need to be ready. |
| Balloon payment | A large lump at a single point (often handover) inside an otherwise smooth schedule. The risk hidden behind a low monthly headline. |
| Oqood | The interim off-plan registration with DLD that records your purchase before the title deed exists. Your protection that the sale is on-record. |
| Escrow account | The RERA-mandated trust account your payments must go into. Developers draw from it against verified construction progress — not directly to themselves. |
Five questions to ask before you sign
Is every payment going into the RERA escrow account?
Funds outside escrow lose the core off-plan protection. Confirm the escrow account number on the SPA and pay only into it.
What is the full schedule — including the handover balloon?
A 1%-monthly plan can still end with 40-50% due at handover. Map every date and amount before signing, not just the attractive monthly figure.
Is the post-handover portion developer-financed, and at what cost?
Some post-handover plans embed a price premium versus paying upfront. Compare the all-in price, not just the cash-flow convenience.
What happens if construction is delayed?
Construction-linked plans naturally pause; time-linked ones may not. Know your position — and the anti-default / refund terms — if the timeline slips.
How does the plan line up with a future mortgage?
Most banks finance at handover, not during construction. Your pre-approval, income, and down-payment readiness all need to land on the handover date.