Off-plan properties—homes purchased before construction is completed—have become one of the most popular real estate investment options in Dubai. With lower entry prices, strong capital appreciation potential, and attractive rental yields, it’s easy to see why buyers are drawn to them.
One of the biggest reasons behind this demand is the flexible payment plans developers offer. The right payment plan can make property ownership smooth and stress-free. The wrong one, however, can strain your cash flow or impact your investment returns.
So how do off-plan payment plans work, which options are available, and what should you consider before choosing one? Let’s break it down.
How Off-Plan Property Payment Plans Work
When purchasing an off-plan property, you’re essentially committing to a home that is still under construction. Instead of paying the full amount upfront, developers allow buyers to pay in stages over a defined period. These stages vary depending on the developer and the project.
Below are the most common off-plan payment plans available in Dubai.
Traditional Off-Plan Payment Plans
80/20 Payment Plan
The 80/20 payment plan is the most widely used structure in Dubai. Buyers pay 80% of the property value during construction, with the remaining 20% due upon completion and handover.
There are two common ways this plan is structured:
Construction-Linked Payment Plan
Payments are tied to construction milestones. Each instalment becomes due once a specific stage of the project is completed. A typical structure may look like this:
- 10% at booking
- 20% after completion of the grey structure
- 20% after flooring
- 20% after installation of internal fittings
- 20% at 80% project completion
- 10% upon handover
This plan is ideal for buyers who prefer payments aligned with visible construction progress.
Time-Linked Payment Plan
In a time-linked plan, payments are made on fixed dates—monthly or quarterly—regardless of construction progress.
For example, on a property priced at AED 1,000,000 with a 20% down payment, the remaining AED 800,000 may be spread over four years (48 months), resulting in monthly instalments of approximately AED 16,667.
Developers usually do not offer discounts on time-linked plans, but in some cases, they may waive penalties for minor late payments.
60/40 Payment Plan
Under this plan, buyers pay 60% during construction and 40% upon handover. It offers a slightly lighter financial commitment during the build phase while keeping a significant amount due at completion.
50/50 Payment Plan
A 50/50 payment plan allows buyers to pay half of the property price during construction and the remaining half at handover. This structure is commonly seen in premium or luxury developments where developers are confident about the project’s post-completion value.
Deferred Payment Plans
Deferred payment plans allow buyers to postpone a portion of the property price until a later date, often after completion.
Typically:
- The buyer pays an initial down payment
- The remaining balance is deferred and paid in instalments or as a lump sum in the future
- The agreement clearly outlines timelines, any applicable interest, and penalties for late payments
This option can be attractive for buyers seeking short-term flexibility, but it’s important to carefully review all terms.
Post-Handover Payment Plans
Post-handover payment plans have gained popularity in recent years, especially among investors. These plans allow buyers to continue paying for the property even after they receive the keys.
A typical post-handover structure may include:
- 30% paid during construction
- 40% paid at handover
- 30% paid in easy monthly instalments over the next two to three years
This option is ideal for buyers who want to generate rental income while completing their payments.
Rent-to-Own Payment Plans
Some developers also offer rent-to-own options. Under this model, buyers pay rent while the property is under construction, and a portion of that rent is credited toward the final purchase price.
This provides flexibility and allows buyers to experience the property and location before fully committing. However, rent-to-own plans can sometimes result in higher overall costs, so reviewing the fine print is essential.
Advantages of Off-Plan Payment Plans
Off-plan payment plans offer several benefits, including:
- Lower purchase prices compared to ready properties
- The ability to pay in manageable instalments rather than a lump sum
- Early access to preferred layouts, views, and unit sizes
- Attractive incentives such as DLD fee waivers, service charge discounts, or limited-time offers from developers
How to Choose the Right Payment Plan
Selecting the right payment plan depends on your financial position and long-term goals. Here are a few key factors to consider:
Your Financial Capacity
If you have strong liquidity, plans that offer early-payment incentives may be beneficial.
Your Investment Goals
If you plan to rent or resell after completion, post-handover plans can offer greater flexibility and cash-flow support.
Developer Reputation
Always choose a developer with a proven track record of timely delivery and quality construction.
Final Thoughts
Payment plans play a crucial role in off-plan property purchases. While traditional payment plans remain the most common in Dubai’s high-demand market, post-handover options have become increasingly limited as developers feel less pressure to offer extended terms.
Choosing the right payment plan can significantly impact your investment success—and that’s where expert guidance matters.
If you’re exploring off-plan opportunities, we’re here to help you secure the best deals and payment structures available.
Get in touch with us today to explore top off-plan projects, including some of the best post-handover payment plans currently on the market.
