Off-plan payment plans & budgeting

How plans are written

A plan is usually written as two or three numbers that add up to 100%: the share you pay before handover (booking plus construction instalments) and the share due on handover, sometimes followed by a share after handover. The split is set by the developer and written into the SPA.

10/90

A small payment at booking, then most of the price at handover. Low cash early, but you need the balance (or a mortgage) on completion.

20/80

Booking plus a few early instalments, then 80% on handover. The large final payment is the main planning question.

40/60

Instalments during construction, then 60% on completion. Modon publishes this split for Hudayriyat Golf Estates.

50/50

Half paid in stages through construction, half on handover.

60/40

More paid while the building goes up, less at the end. Often tied to construction milestones.

1% a month

A down payment, then a fixed 1% of the price each month. Spreads cash evenly, but the monthly commitment runs for years.

Post-handover

Part of the price is paid in instalments after you receive the keys, for example 70/30. You owe the developer for longer, and title can stay restricted until you finish.

Bars are illustrative. Examples on our UAE launch map cards show each project's published plan and its source.

What falls due, and when

Milestone	What you typically pay
Booking / reservation	A booking deposit or the first instalment, often 5–20% of the price. Usually paid when you reserve and sign the reservation form.
SPA signing and Oqood registration	The DLD registration fee (in Dubai, normally paid at this stage) and the developer's admin fees. The developer registers the sale on the DLD's interim register (Oqood). Abu Dhabi off-plan sales are registered on Dari.
Construction instalments	Dated payments, or payments due when the project reaches set percentages of completion. They are paid into the project escrow account.
Handover	The handover balance, plus the first service-charge payment, utility connections and any snagging or fit-out costs. A mortgage, if you use one, is usually drawn at this point.
After handover (if any)	Remaining instalments under a post-handover plan, on the dates in the SPA.

Costs on top of the price

Dubai

DLD registration (Oqood). The DLD lists 2% of the sale value for the seller and 2% for the purchaser, 4% in all, plus AED 10 knowledge and AED 10 innovation fees, and an AED 1,000 fee where the developer registers through the Oqood developer portal. Developers often ask the buyer to pay the full 4%; check your SPA. DLD: initial sale registration
Trustee fees. On a completed sale, registration-trustee fees are AED 4,000 + VAT for a sale of AED 500,000 or more, or AED 2,000 + VAT below that. DLD: property sale registration
Mortgage registration. 0.25% of the loan, AED 250 per title deed and AED 10 + AED 10 fixed fees; a trustee office charges AED 4,000 + VAT, or AED 5,000 + VAT for an Oqood (off-plan) mortgage. DLD: mortgage registration
Bank fees. Valuation and arrangement fees are set by each bank, within the CBUAE fee rules.
Service charges. Annual building and community charges, usually quoted per sq ft. They start at handover. Ask the developer for the projected rate in writing.
Agency fee. Agreed in writing before you proceed. On new off-plan sales the developer usually pays the agency; on a resale or assignment the buyer often pays.

Abu Dhabi

Off-plan sale registration on Dari. The developer submits the sale; the fee is 2% of the total sale price, and AED 10,000 is added if the sale isn't registered within 21 days of the contract. The application records who pays the fee. Dari / ADREC help: off-plan unit sale registration · Dari service page
Escrow and project registration are regulated by the Abu Dhabi Real Estate Centre (ADREC) under the Department of Municipalities and Transport. ADREC: developer journey

Financing an off-plan purchase

The Central Bank of the UAE caps a mortgage on an off-plan property at 50% of the value, for any buyer. That means at least half the price normally comes from your own cash, through the instalments before handover. CBUAE Rulebook: important ratios

Some developers advertise bank-backed packages with different terms; for example, Modon states that eligible buyers at Wadeem Gardens can finance up to 75% off-plan through Abu Dhabi Islamic Bank (WAM, 1 Oct 2026). Treat any such offer as the bank's and developer's own terms, subject to approval. Our mortgage calculator shows repayments and the CBUAE limits.

Escrow: where your instalments go

In Dubai, Law No. 8 of 2007 requires a developer selling off-plan to open a separate escrow account for each project with an approved bank. Buyers' payments go into that account and can be used only for building that project, and the law protects them from claims by the developer's creditors. Dubai Law No. 8 of 2007

Before you pay, look the project up on the DLD project status search. It shows the project's registration, escrow bank and reported completion.
Pay instalments only into the escrow account named in your SPA, never to a personal or agency account.
See also our guide on checking a developer or project.

Illustrative example: an AED 2,000,000 apartment

Example only, not advice and not a quote. A made-up Dubai apartment on a 10/50/40 plan (10% at booking, 50% in construction instalments, 40% at handover). Real plans, fees and dates differ by project. US$ figures use the dirham peg, AED 3.6725 = US$1, rounded.

Stage	Item	AED	≈ US$
Booking and SPA	10% booking instalment	200,000	54,459
	DLD 4% registration, if the buyer pays all of it	80,000	21,784
	DLD fixed fees (AED 1,000 portal fee + AED 20), where charged	1,020	278
Cash at booking		281,020	76,520
Construction	50% in instalments, e.g. five payments of AED 200,000 over roughly three years	1,000,000	272,294
Handover	40% handover balance	800,000	217,835
Handover	First year's service charge, e.g. 1,200 sq ft at AED 18/sq ft	21,600	5,882
Total cash to handover, without a mortgage		2,102,620	572,531
Buffer	A cushion for delays, fee changes, furnishing and moving, e.g. 5% of the price	100,000	27,229
Cash plan including buffer		2,202,620	599,760

With a mortgage at handover. If a bank lends the AED 800,000 balance (40% of the value, within the 50% off-plan cap), you would pay AED 1,281,020 (≈ US$348,814) of your own cash before handover, then mortgage registration of about AED 2,270 (0.25% + AED 270 fixed fees) plus trustee and bank fees. Your monthly repayment depends on the bank's rate and term; try the mortgage calculator.

The service-charge rate is the figure a third-party listing gives for one project on our map (Expo Valley Views); yours will differ. Arithmetic: 200,000 + 80,000 + 1,020 + 1,000,000 + 800,000 + 21,600 = 2,102,620.

Buying in US dollars

The dirham has been pegged to the US dollar at AED 3.6725 since 1997, so instalments in AED translate to a fixed US$ amount. If you hold another currency, such as sterling or euros, your cost in that currency moves with exchange rates over a multi-year plan. Bank transfer and conversion charges apply to each instalment.

Risks to plan for

Delays. Handover dates often move. Your SPA sets what happens if completion is late; check the grace period and any compensation terms. Plan your housing and cash around a later date than advertised.
Missed payments. In Dubai, if a buyer defaults the developer must notify the DLD, which gives the buyer 30 days to pay. If the buyer still doesn't pay, Law No. 19 of 2020 (amending Law No. 13 of 2008) lets the developer, depending on progress, keep the contract and claim the balance, ask for the unit to be auctioned, or end the contract and keep up to 40% of the price (completion above 60%) or up to 25% (completion below 60%). Dubai Law No. 19 of 2020 (PDF)
Liquidity. Money paid in instalments is tied up until handover or until you sell. Off-plan units can be slower to resell than completed homes.
Resale and assignment limits. Many developers allow you to sell (assign) a unit before handover only after a set share of the price has been paid, and charge a fee for their consent. Read these clauses in the SPA before you buy.
Overextending. Add up every instalment, the fees and the handover balance against your income and cash reserves, including if a mortgage is approved for less than you expect or rates rise. The CBUAE also caps total debt repayments as a share of income.
Changing terms. Launch plans, discounts and incentives can change between phases. Rely only on what is written in your SPA.

Off-plan FAQ

Short answers on escrow, Oqood registration, snagging and resale, with the official source for each. They describe the general rules, not your contract.

Where does my money go when I pay an off-plan instalment?

In Dubai, payments for an off-plan unit go into the project's escrow account at an approved bank, not to the developer's general account. Law No. 8 of 2007 on escrow accounts says that money can be used only for building that project. Before paying, check the project, its escrow bank and its reported progress on the DLD project status search, and pay only into the escrow account written in your SPA.

Source: Dubai Law No. 8 of 2007 (escrow accounts) · DLD project status search

What is Oqood, and why does it matter?

Oqood is the Dubai Land Department's interim register for units sold off-plan. The developer registers your SPA there, and the DLD says this must be done within 90 days of signing. You get a provisional registration certificate in your name, and the registration fee (4%, plus small fixed fees) is usually paid at this stage. Ask for the certificate and check that the unit, price and your name are right. In Abu Dhabi the equivalent registration is made on Dari.

Source: DLD: register the initial sale (Oqood) · Law No. 19 of 2020 amending the interim register law

What is snagging, and what does the developer have to fix after handover?

Snagging is the inspection before or at handover where you list defects such as cracked tiles, leaks or faulty fittings, and ask the developer to fix them. Agree the list in writing before you accept the keys. For jointly owned buildings in Dubai, Article 40 of Law No. 6 of 2019 makes the developer liable for one year from handover to repair or replace defective installations (mechanical, electrical, plumbing and similar) and for ten years from the completion certificate for structural defects. An agreement that cuts these periods is void.

Source: Dubai Law No. 6 of 2019, Article 40

Can I sell or assign an off-plan unit before handover?

Often yes, but on the developer's terms. Many SPAs allow a resale (assignment) only after you have paid a set share of the price and the developer has issued a no-objection letter, which may carry a fee. In Dubai the transfer is registered with the DLD, whose fee schedule sets 4% of the sale value for a property sale, shared equally between seller and buyer unless agreed otherwise. In Abu Dhabi, Dari lists a 2% fee for reselling an off-plan freehold unit. Read the resale clause in your SPA before you buy if you might sell early.

Source: Executive Council Resolution No. 30 of 2013 (DLD fees) · Dari: re-sale of an off-plan plot or unit

What happens if the project is late, or I miss a payment?

Your SPA sets the expected completion date, any grace period and what happens if either side is late. Dubai's interim register law also sets out what a developer must do before cancelling a contract when a buyer defaults, and how much it may keep depending on how far the project has progressed. Keep receipts for every payment, track progress on the DLD project status search, and get independent legal advice if a dispute starts.

Source: Law No. 19 of 2020 amending the interim register law · DLD project status search

Official sources

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