Off-plan payment plans in Dubai, explained
Most new homes in Dubai are sold off-plan: you buy before the building is finished and pay in stages while it goes up. The stages are described as a split, such as 60/40 or 50/50, and the split is the single most useful number to understand before you reserve.
What the numbers mean
The first number is what you pay during construction. The second is what you pay at handover, when you get the keys. On a 60/40 plan for a home of AED 2,000,000, you would pay AED 1,200,000 while the building rises and AED 800,000 when it is complete.
The construction part is usually broken into a reservation payment (often 10 to 20 percent) and then instalments linked either to dates or to construction milestones, such as the frame reaching a certain floor.
Where your money goes
In Dubai, payments for off-plan homes go into an escrow account registered for that specific project. The developer can only draw from it as construction progresses and is checked. This is required by law and it is the main protection you have as an off-plan buyer, so ask to see the project's escrow details before you pay.
The split tells you how much you pay before you see the finished home. Choose the one that matches your cash, not the one with the best headline.
Post-handover plans
Some developers offer to spread part of the price over one to five years after handover. It can make a purchase possible sooner, but read the total: the price is sometimes higher to make up for the wait.
Fees on top
The Dubai Land Department charges a 4 percent registration fee on the price, usually due when you sign the sale agreement, plus a small admin fee. Budget for it separately from the plan. Our article on what you pay when you buy lists every cost.
How we do it
Our plans are 60/40 or 50/50 depending on the project, with instalments tied to construction milestones rather than dates, so you only pay as the building actually moves. If you would like to see the schedule for a specific home, ask us and we will send it the same day.