Dubai Off-Plan Payment Plans 2026: 60/40, 1% Monthly, Costs

Dubai Off-Plan Payment Plans

This guide starts with how a payment plan works and what names such as 60/40 and 1% monthly mean. It then compares the plans at one price, and explains the first payment, the hidden cost, the handover payment and missed payments.

How Off-Plan Payment Plans Work in Dubai

An off-plan home is a home that you buy before it is built or finished. Most payment plan properties in Dubai are off-plan homes.

A payment plan is the list of payments you agree to make for the home. Each payment has an amount, and a date or a building stage when it is due.

The developer writes the payment plan, not the government. The plan is part of your sale contract, which is called the sale and purchase agreement, or SPA. After you sign the SPA, you must follow the plan.

The three stages of a payment plan

Almost every payment plan in Dubai has the same three stages:

• Booking. You pay a first amount to reserve the home. It is called the booking amount or the down payment.
• During building. You pay instalments, which are the regular payments in the plan.
• Handover. Handover is the day the developer gives you the finished home and the keys. Most plans ask for a large payment then.

Who you pay, and where the money goes

You pay the developer, but your money must go into the project's escrow account. An escrow account is a bank account that holds the buyers' money for one building project. Dubai law says this money is only for building that project.

You can check the account before you pay. The Dubai Land Department, or DLD, is the government office that registers property in Dubai. Its free Project Status Enquiry shows the escrow bank and account number of each project.

After you sign the SPA, the developer must register your purchase with the DLD within 90 days. This first registration is called Oqood. Our Oqood guide explains how to check it.

When each instalment is due

Developers set the due dates in one of two ways:

• By building stage. The payment is due when the building reaches a stage, such as 30% or 50% finished. If the work slows down, your payments slow down too.
• By date. The payment is due on a fixed date, whatever is happening on the building site. Every 1% monthly plan works this way.

With a plan by building stage, you can ask for proof that the stage is finished. The Dubai Land Department says a buyer who does not get this proof "will not be obligated to pay" until the stage is confirmed.

A plan by date does not give you this right. You must pay on the date, even if the building is late. So ask the developer which kind of plan it is before you sign.

Types of Payment Plan in Dubai

Most payment plans in Dubai have a name with two numbers, such as 60/40. The first number is the share of the price that you pay before handover. The second number is the share that you pay at handover. The booking amount is part of the first number.

Some sellers put the booking amount first, so a plan called 20/80 can mean 20% now and 80% later. So always ask for the full list of payments, with every date and amount.

60/40 Payment Plan in Dubai

A 60/40 payment plan means you pay 60% of the price before handover and 40% at handover. A typical 60/40 plan looks like this:

• 10% when you book
• 50% in instalments during building
• 40% at handover

You will also see 50/50 and 40/60 plans. They ask for less money during building, so they feel easier at first. But the handover payment is bigger: 50% or 60% of the price.

80/20 and 70/30 Payment Plans

An 80/20 payment plan means 80% before handover and 20% at handover. A 70/30 plan means 70% and 30%.

These plans ask for more money while the home is being built, so you need more savings during those years. In return, the handover payment is small.

1% Monthly Payment Plan

A 1% monthly payment plan means you pay 1% of the price every month. On a home of AED 1.5 million, that is AED 15,000 a month.

If the building takes three years, 1% a month adds up to only 36% of the price. So every 1% plan has other payments too. Look for these three:

• The booking amount. Danube's 1% plan starts with a down payment of 20%.
• Extra payments in the first year. Samana's South Haven plan asks for 10% at booking, 5% in month 4 and 10% in month 12.
• What happens at handover. Some plans ask for all the rest in one payment at handover. Other plans continue at 1% a month after handover. Samana's South Haven plan has 75 monthly payments, which is more than six years.

Post-Handover Payment Plan

A post-handover payment plan lets you keep paying the developer after you get the keys. You pay the rest of the price in instalments for several years after handover. There are two things to know:

• The price is often higher than the price of the same home on a shorter plan.
• The title deed usually comes later. A title deed is the DLD's document that shows you own the home. You usually get the full title deed only after your last payment.

Read our guide to the post-handover payment plan in Dubai before you choose one.

Dubai Payment Plans Compared

This table shows five payment plans for the same home. The home costs AED 1.5 million, and handover is three years after booking.

The first three plans use a booking amount of 10%. The fourth plan uses 20% and then 36 monthly payments. The last plan follows Samana's South Haven plan. The 4% government fee is extra in every row.

The table shows three things:

• Easy plans have a large handover payment. The 40/60 plan asks for the least during building, but for AED 900,000 at handover.
• The 1% plans are not the cheapest at the start. In the first year, the two 1% plans ask for AED 480,000 and AED 555,000. The 60/40 plan asks for about AED 400,000, if its instalments are spread evenly.
• Only one plan has no handover payment. With that plan, you pay AED 15,000 a month for 39 more months after handover.

So compare what you pay in each year, and what you pay at handover, not the name of the plan.

How Much Do You Pay at the Start?

At the start you pay the booking amount plus a 4% government fee. The booking amount is usually 10% to 20% of the price.

The fee is the registration fee of the Dubai Land Department. It is 4% of the price, plus two small charges of AED 10 each. In off-plan sales, the buyer normally pays all of it. You pay the fee to the developer, and the developer pays it to the DLD.

The 4% fee is not part of the payment plan. The plan adds up to 100% of the price without it. So a plan that says 10% at booking really needs about 14% in cash.

Here is an example with a home of AED 1.5 million:

Banks do not lend money for the fee, so it must be your own cash.

In 2026, some developers offer to pay the 4% fee for you. Ask whether the price is the same without the offer. Our guide to DLD fees explains the fee in full.

Is a Payment Plan Interest-Free?

A payment plan in Dubai has no interest in the contract. So developers can advertise it as interest-free. But the cost of paying later is usually inside the price.

A developer that waits longer for its money usually asks for a higher price. A developer that gets its money sooner can give a discount.

An example of the cost inside the price

A developer offers the same flat in two ways. These prices are an example, not a real price list.

• Plan A is a 60/40 plan at AED 1,500,000. The buyer takes a bank loan of AED 600,000 for the handover payment and repays it over five years.
• Plan B is a post-handover plan at AED 1,650,000. The buyer pays the last 40% to the developer over five years after handover, with no interest.

The bank loan in Plan A has an interest rate of 5.31% a year, which one UAE bank published in October 2026. The loan also has fees of about AED 10,000.

In this example, the plan with no interest costs about AED 71,500 more. The buyer pays no interest, but pays a higher price and a higher DLD fee.

How to find the real cost of a payment plan

Ask the developer for two prices in writing: the price of the home on its shortest plan, and the price on its longest plan. The difference between the two prices is the cost of paying later.

Then compare that cost with the interest on a bank loan. Our guide to a mortgage in Dubai shows today's rates.

What You Pay at Handover

At handover you pay the last large payment of the plan. On a 60/40 plan for a home of AED 1.5 million, it is AED 600,000. The developer gives you the keys only after you have paid it.

Can you get a mortgage for the handover payment?

Yes. A mortgage is a home loan from a bank, and many buyers use one for the handover payment. But the Central Bank of the UAE limits how much a bank can lend.

While the home is still being built, a bank can lend only 50% of its value, and you must pay your own half first. So most buyers take the loan at handover.

When the home is finished, banks usually treat it like any ready home. The loan limit then depends on who you are. A resident is a person from another country who lives in the UAE on a residence visa. A non-resident lives outside the UAE.

This table shows the most a bank can lend on a finished home worth AED 1.5 million:

What happens if the bank lends less

The bank does not use the price in your contract. The bank uses its own valuation of the home on the day. A valuation is the bank's opinion of what the home is worth. It can be lower than the price you agreed three years earlier. In September 2026, the founder of Emaar said Dubai prices could fall by 5% to 10% by 2027.

If the bank lends less than your handover payment, you must pay the difference in cash. Here are two examples from the table:

• A 60/40 plan has a handover payment of AED 600,000. Every loan in the table covers it.
• A 40/60 plan has a handover payment of AED 900,000. A non-resident can borrow about AED 750,000. So this buyer must find AED 150,000 in cash, or AED 225,000 with the lower valuation.

The bank also checks your income. A loan of AED 600,000 over 25 years costs about AED 3,617 a month at 5.31%. All your monthly debt repayments together cannot be more than 50% of your income.

So speak to a bank before you choose the plan, and again about six months before handover.

What Happens if You Miss a Payment

If you miss a payment, the developer first adds a late-payment charge. The amount is in your SPA. If you still do not pay, the developer can cancel the contract and keep part of your money.

The developer cannot do this alone. Dubai's off-plan property law sets out the steps:

1. The developer tells the DLD. It reports the missed payment.
2. The DLD gives you 30 days. The DLD sends you a written notice. You have 30 days to pay, or to agree a new schedule with the developer.
3. The DLD confirms the progress. If you do neither, the DLD issues a document. It states how much of the project is built.
4. The developer can act. Only then can the developer cancel the contract, and it does not need a court.

What the developer can keep

The amount the developer can keep depends on how much of the project is built. The law sets these limits:

The limit is a share of the home's value, not a share of what you have paid. If you paid more than the limit, the developer must return the extra money.

Here is an example. A buyer has paid AED 750,000, which is half the price. The project is 70% built, and the buyer stops paying. The developer can cancel and keep up to AED 600,000. So the buyer may get back only AED 150,000.

The law gives the developer up to one year from the cancellation, or 60 days from the day it sells the home again.

If you miss the handover payment

At handover the project is finished, so the last row of the table applies.

“Above 80% completion, the developer may keep the contract, "retain all amounts paid by the purchaser, and claim the balance".”

Dubai Law No. 13 of 2008, Article 11, as amended in 2020

In plain words, the developer can keep everything you have paid and still ask you for the rest.

A real case from 2022

In August 2022, a buyer wrote to the legal column of Gulf News. The buyer had paid 90% of the price of an off-plan home. The last payment was not paid, and the developer gave the home to another buyer.

The lawyer who answered said the developer must first go through the DLD and the 30 days' notice. We know only the buyer's side, and we do not know how it ended.

The case shows that paying most of the price does not protect you if you miss the last payment. The DLD steps also protect you. In November 2022, Dubai's highest court ruled that a buyer can ask a court to check them.

If you cannot pay, talk to the developer before the due date. Developers often prefer a new schedule to a cancellation. If the developer agrees to new dates, get them in writing as an addition to your SPA.

Costs Outside the Payment Plan

A payment plan covers only the price of the home. Some costs are outside the plan, and you pay them in cash. Plan for these:

• DLD registration fee. This is 4% of the price plus AED 20, at the start.
• Developer's admin fee. Some developers charge one at the start. Ask for the amount in writing.
• Title deed fee. The DLD charges AED 520 for the title deed and map at handover.
• Mortgage costs. If you take a loan at handover, the DLD charges 0.25% of the loan. The bank usually charges 1% of the loan plus VAT. The valuation costs about AED 2,600.
• Costs of the finished home. From handover, you pay service charges for the building, and deposits for water and electricity.

Our guide to the cost of buying property in Dubai lists every cost with examples.

How to Choose a Payment Plan in Dubai

The best payment plan is not the one with the smallest monthly amount. Choose the plan whose handover payment you are sure you can pay.

The best payment plan for each type of buyer

Different plans suit different buyers:

• You have savings and a steady income. Look at an 80/20 or 70/30 plan. Ask for a lower price because you pay sooner.
• You live in the UAE and will take a mortgage at handover. Look at a 60/40 plan. The 40% is well inside the loan limit, even if the bank's valuation is low.
• You are buying a second home, or a home to rent out. A bank can lend a resident 60% on these homes. Keep the handover payment at 40% or less.
• You live abroad. Banks lend about 50%. A 60/40 plan can work, but a 40/60 plan needs extra cash at handover.
• A bank will not lend to you, or your income changes every month. A 1% monthly or post-handover plan may suit you. Check the price against a shorter plan first.
• You plan to sell before handover to cover the payments. Do not rely on this. You need the developer's written permission and a buyer at a good price.

A five-minute check before you sign

For this check, you need the full list of payments and a calculator.

1. Add up each year. Add the payments that are due in each year. Add 4% of the price to the first year.
2. Check each year. You should be able to pay each year from savings and income that you already have.
3. Work out your loan. Take 90% of the price. Multiply it by your loan limit: 0.85, 0.8, 0.6 or 0.5.
4. Subtract. Take the loan away from the handover payment. If the answer is above zero, you need that amount in cash at handover.

For a non-resident on the 40/60 plan above, the answer is AED 225,000. If you cannot save that amount in time, choose a different plan or a cheaper home. For the next steps, read how to buy off-plan property in Dubai.