Dubai off-plan payment plans explained: construction-linked, post-handover and what to check

Key takeaways

• Structure: deposit, instalments during construction, balance at handover, sometimes continuing after handover.
• Escrow: every payment must go into the project’s RERA escrow account, under Dubai Law No. 8 of 2007.
• Construction-linked beats calendar-linked: your money should move with progress, not with dates.
• DLD fee: 4% of the price, due when the purchase is registered on Oqood, usually at the start.
• Financing: UAE banks lend at most 50% on off-plan property.

How do off-plan payment plans work?

A payment plan is written as two or three numbers. A 60/40 plan means 60% paid during construction and 40% at handover; 10/90 means a small deposit and most of the price at completion; a post-handover plan spreads part of the balance over months or years after you receive the keys.

Plans matter because off-plan dominates the market: it made up about 69% of Dubai sales by volume in 2025, 149,290 transactions worth AED 448.1 billion, on DLD data compiled by DXB Interact. Developers compete on terms, so the plan is often what is really being sold.

Where does your money go?

Into an escrow account opened for that one project, at a bank approved by the regulator. The developer can only draw on it as construction milestones are certified.

“Any Developer who wishes to sell Units off-plan must submit to the Department a request to open an Escrow Account.”

Dubai Law No. (8) of 2007, Article 6

“…the payments made by off-plan purchasers, or by the financers of the project are deposited in an account…”

Dubai Law No. (8) of 2007, Article 7

The escrow account number belongs in your sale and purchase agreement (SPA). Never pay a developer’s general account, an agent or an individual “to secure the unit”. See the full due-diligence checklist.

Construction-linked or calendar-linked?

• Construction-linked: instalments fall due at certified milestones (for example 30%, 50% and 70% complete). If the project slows, so do your payments.
• Calendar-linked: instalments fall due on fixed dates whatever the site looks like. If the project is delayed, you keep paying for a building that isn’t rising.

Pipeline size makes the difference real: about 452,000 units were under construction across Dubai at the end of 2025, two-thirds at 0–20% completion, according to DLD data compiled by DXB Interact. Many will hand over later than marketed.

What does a post-handover plan cost you?

A post-handover plan lets you take the keys, and possibly start earning rent, while still owing the developer. That can help cash flow, but:

• You owe the developer, not a bank, so check the default clauses.
• Some plans carry a higher headline price than the same unit on a shorter plan; compare the cash price.
• You may not be able to sell, mortgage or let freely until the balance is paid; read the SPA.

When are fees due?

The 4% DLD fee is paid when the purchase is registered on the DLD’s interim register, Oqood, usually right after signing, not at handover. On a AED 2 million unit that is AED 80,000 at the start. Some developers advertise “DLD fee waived”: check whether it is genuinely paid by them or built into the price. See all buying costs.

Can you sell or borrow before handover?

Selling (assignment): most developers require a minimum share of the price to be paid, often 30–40%, before they allow an assignment, plus an admin fee. Liquidity before handover depends on demand for that project at that moment.

Borrowing: UAE Central Bank rules cap loan-to-value on off-plan at 50% for every buyer, as summarised by Al Tamimi & Co, and many banks only lend close to completion. Plan to fund most instalments in cash.