Off-Plan Payment Plans in Dubai Explained: 60/40, 80/20 and Post-Handover
What the numbers in a payment plan mean, how post-handover plans work, and how to compare two plans by what they really ask of the buyer.
The payment plan is often what decides an off-plan sale. Two projects at the same price can ask very different things of a buyer, and the plan can matter as much as the price. Here is how to read one.
How to read the numbers
A plan is written as two numbers: the share of the price paid before handover and the share paid at or after handover. A 60/40 plan means 60% during construction and 40% when the unit is ready.
| Plan | During construction | At or after handover | Who it suits |
|---|---|---|---|
| 50/50 | 50% | 50% | Buyers who want the smallest outlay before keys |
| 60/40 | 60% | 40% | A common middle ground; handover share often financed by a mortgage |
| 70/30 | 70% | 30% | Buyers comfortable paying most during the build |
| 80/20 | 80% | 20% | Often paired with a better price per square foot |
| Post-handover | Varies | Part paid over months or years after keys | Investors who want rent to help pay for the unit |
A worked example
Take a studio at AED 580,000 on a 60/40 plan, with 10% due at booking:
- Booking: AED 58,000 (10%), plus the DLD fee of AED 23,200 (4%) and an administration fee.
- During construction: AED 290,000 (50%) in instalments.
- At handover: AED 232,000 (40%), paid in cash or with a mortgage.
So the buyer needs a little over AED 81,000 to start, not the full price — which is the reason off-plan appeals to first-time investors.
Milestone plans and date plans
Instalments are tied either to construction milestones — for example 10% when the structure reaches a certain level — or to dates, such as every three or six months. Milestone plans link your payments to real progress; date plans are easier to budget for. The SPA says which one applies, and you can follow the project's progress on the DLD's Dubai REST app.
Post-handover payment plans
With a post-handover plan you receive the keys before the price is fully paid, then pay the rest in instalments — often monthly or quarterly over one to five years. If you rent the unit out, the rent can cover much of those instalments.
Points to check:
- Whether the title deed is issued at handover or only once the post-handover instalments are paid.
- Whether you can sell the unit while instalments remain, and on what terms.
- Whether the price is higher than for the same unit on a standard plan.
How to compare two payment plans
Do not compare plans by their percentages alone. Put them side by side on:
- Cash needed to start: booking, first instalments and the DLD fee.
- Cash needed each year until handover.
- The handover payment, and whether you can finance it.
- The price per square foot, because a softer plan can come with a higher price.
- The handover date, since a late handover stretches everything.
On Listy Map every project shows its payment plan next to its price and handover date, and you can filter by plan — for example, only projects with a post-handover plan.
For agents: presenting the plan
Clients remember monthly amounts better than percentages. Turn the plan into what the client pays now, what they pay each quarter and what they pay at the keys, in their currency. A clear sales offer with the plan laid out this way answers most follow-up questions before they are asked.
Questions people ask
What does a 60/40 payment plan mean?
60% of the price is paid during construction, in a booking payment and instalments, and the remaining 40% is paid at handover.
What is a post-handover payment plan?
A plan where part of the price is paid after you receive the keys, in instalments over an agreed period, often one to five years. It lets an investor collect rent while still paying for the unit.
Are off-plan payment plans interest-free?
Developer payment plans in Dubai are usually interest-free, but the price may already reflect the flexibility. Compare the price per square foot with similar projects that ask for more upfront.
Is the 4% DLD fee part of the payment plan?
No. The DLD registration fee is paid on top of the price, normally at the start, unless the developer offers to cover it.