Dubai Payment Plans Explained
A Dubai payment plan spreads the purchase price across construction milestones and, increasingly, years after handover. The four structures you will be offered are 60/40, 80/20, 1% monthly, and post-handover — and the difference between them is worth six figures in cash flow.
Key takeaways
- Deposits typically start at 10–20% of price.
- Post-handover plans let rent service the remaining instalments.
- Higher down payments usually unlock a 3–6% discount.
- Missed instalments can trigger DLD-regulated cancellation and forfeiture.
The four plan structures
| Plan | During construction | At handover | After handover |
|---|---|---|---|
| 60/40 | 60% | 40% | — |
| 80/20 | 80% | 20% | — |
| 1% monthly | ~1% per month | Balance | — |
| Post-handover | 50–60% | 10% | 30–40% over 2–5 yrs |
Worked example — AED 1.5M unit, post-handover plan
| Stage | % of price | Amount (AED) |
|---|---|---|
| Booking deposit | 10% | 150,000 |
| Construction milestones | 50% | 750,000 |
| Handover | 10% | 150,000 |
| Post-handover (36 months) | 30% | 450,000 (12,500/mo) |
What to check before signing a plan
- Whether the DLD 4% fee is waived, deferred or payable on booking.
- Whether instalments are date-linked or construction-milestone-linked (milestone is safer).
- The penalty schedule for late payment and the cure period.
- Whether post-handover instalments carry an implicit interest loading in the headline price.
Frequently asked questions
What is a 1% monthly payment plan in Dubai?
You pay roughly 1% of the purchase price each month during construction after an initial deposit, with a balloon balance at handover. It minimises the cash required per month but rarely covers the full price by completion.
Do Dubai payment plans charge interest?
Developers do not charge stated interest, but extended post-handover plans are usually priced into a slightly higher headline purchase price than a cash or fast-payment purchase.
What happens if I miss an instalment?
The developer issues a notice through the DLD. Under Law No. 19 of 2017 the amount the developer may retain depends on construction progress; cancellation is regulated, not automatic.