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Understanding Payment Plans

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Understanding Payment Plans

Payment plans are one of the most attractive features of off-plan property in Dubai, allowing you to spread your investment over time.

How Payment Plans Work

Instead of paying the full price upfront, developers offer structured payment plans that typically span the construction period. Payments are linked to construction milestones, protecting both you and the developer.

Common Payment Structures

Standard Plan

Booking

10%

Construction

50%

Handover

40%

Post-Handover Plan

Booking

10%

Construction

40%

Handover

25%

Post-Handover

25%

Premium Plan

Booking

20%

Construction

40%

Handover

40%

Key Terms Explained

Booking Amount

The initial payment (typically 5-20%) that reserves your unit. This is usually paid at the time of signing the Sales Purchase Agreement (SPA).

Construction-Linked Payments

Payments made as construction reaches certain milestones. Developers must show progress before requesting payments.

Handover Payment

The final payment made when you receive the keys to your property. This is when ownership officially transfers.

Post-Handover Payments

Some developers offer plans where you continue paying after receiving your property, often interest-free for 1-5 years.

Pro Tip

Post-handover payment plans can help with cash flow, especially if you plan to rent out the property. Rental income can help cover the remaining payments.