Explore Off Plan Payment Plans in Dubai

Off Plan Payment Plans in Dubai

Let’s uncover the exciting world of buying homes in Dubai before they’re even built! These opportunities are called off-plan payment plans. They show you different ways to pay for a home. Whether it’s step-by-step with the Construction-Linked plan or following a fixed schedule with the Time-Linked plan, there’s a plan for everyone. You can even delay part of the payment with the Deferred Payment plan. Join us as we explore these plans to understand post-handover magic!

Off Plan Payment Plans in Dubai Real Estate

Dubai’s real estate scene is pretty exciting, especially when buying homes before they’re even built. These opportunities, called off plan payment plans, have different ways to pay for them. Let’s break it down so you can understand it easily.

  • Construction-Linked Payment Plan

The Construction-Linked Payment Plan follows a systematic approach. Payments are tied to specific construction milestones. This provides a transparent and step-by-step payment structure. This plan lets buyers witness the development stages and align their payments with the project’s progress.

  • Time-Linked Payment Plan

The Time-Linked Payment Plan operates on a predefined schedule. Payments are not contingent on construction progress but follow a fixed timeline. This structured approach facilitates precise financial planning. This plan’s main advantage is that it clarifies when each payment is due and provides a predictable payment journey.

  • Deferred Payment Plan

The Deferred Payment Plan allows buyers to postpone a portion of the property’s cost until completion. This approach provides financial flexibility and will enable buyers to manage their finances. This plan accommodates varying economic preferences by delaying a portion of the payment.

  • 80/20 Payment Plan

Under the 80/20 Payment Plan, buyers contribute a substantial portion (80%) during the construction phase. The remaining balance (20%) is due upon completion. This approach ensures developers receive significant upfront support. You can contribute a smaller percentage to the buyers after the property is ready. The plan aims for a balanced financial arrangement.

  • 60/40 Payment Plan

The 60/40 Payment Plan involves a partial payment (60%) during construction and the remaining portion (40%) upon completion. This distribution of financial responsibility offers a fair and equitable arrangement.

  • 50/50 Payment Plan

The 50/50 Payment Plan entails an equal distribution of payments – half (50%) during construction and the remaining half upon completion. This straightforward approach ensures a fair and transparent payment structure.

The Down Payment

In real estate transactions, a down payment is the initial payment made by the buyer as a commitment to purchase a property. In the context of off-plan properties in Dubai, the down payment is crucial to the purchasing process. It typically ranges between 10% and 20% of the total property value. The down payment demonstrates the buyer’s serious intent to proceed with the transaction. This upfront payment is stipulated in the sales and purchase agreement. It is pivotal in initiating the property acquisition process.

What is a Post-Handover Payment Plan?

What is a Post-Handover Payment Plan

A post-handover payment plan is a method offered by property developers in Dubai. Instead of paying the full property price when you get the keys, you can delay payment until the property is ready. You then pay this amount over several years. This setup offers flexibility for buyers, making it easier to handle the financial side. The specific details of the procedure depend on the developer’s terms. 

Benefits of Post-Handover Payment Plans:

Investing in a property with a post-handover payment plan offers several strategic advantages. Let’s see the key benefits:

  • Financial Flexibility

Financial Flexibility in Property

Post-handover plans facilitate a phased payment structure, distributing financial obligations over an extended period. This gradual approach proves advantageous, particularly for those who prefer not to allocate a significant lump sum at the outset.

  • Inclusive Homeownership:

These plans make homeownership more accessible to a diverse demographic. They are transcending financial constraints by allowing payments to be spread across several years.

  • Long-Term Financial Planning:

The extended duration of these plans spans from 3 to 10 years. This empowers buyers to engage in comprehensive, long-term financial planning. This extended timeline facilitates better budgeting and financial management.

  • Diversification of Investments:

With the flexibility of staggered payments, investors can allocate funds to various investment avenues simultaneously. This diversification strategy enables individuals to explore additional investment opportunities while securing a property.

  • Tailored to Varied Financial Profiles:

Post-handover payment plans operate as a versatile financial instrument. Whether an individual possesses substantial capital or seeks a more measured approach, these plans offer adaptability to diverse financial circumstances.

Mortgage Financing for Off-Plan Properties

Securing a mortgage for off-plan properties in Dubai is a nuanced process that demands a comprehensive understanding of the financial landscape. Here’s a detailed exploration of mortgage financing for off-plan properties:

  • Understanding Off-Plan Mortgages

Understanding Off-Plan Mortgages

When you want a mortgage for a property that’s still being built (off-plan), it’s slightly different from the usual mortgages for finished homes. Lenders look at the project’s credibility, the developer’s reputation, and how long it will take to build.

  • Getting Approved

Lenders look closely at the off-plan project before saying yes to a mortgage. They want to ensure the developer is reliable, the project details add up, and everything looks financially stable.

  • Loan-to-Value Ratio (LTV) Matters:

The Loan-to-Value (LTV) ratio is a fancy way of saying how much of the property’s value the loan covers. This ratio can change for off-plan places based on how much of the building is done and the associated risks.

  • Paying as It’s Built:

When the property is being built, the mortgage money gets paid in steps as each part of the building is finished. 

  • Check the Developer and Project:

Lenders prefer projects and developers with a good reputation. Getting a mortgage becomes easier if the developer has a strong track record and the project plan looks solid.

  • Flexibility in Paying Back:

Mortgages for off-plan homes usually let you work out a suitable payment plan. You can talk to the lender about when and how you’ll make payments, aligning with when parts of the building are finished.

  • Legal Stuff and Approvals:

Before getting too far, ensure the off-plan project follows all the rules. Getting pre-approvals from lenders involves giving them all the details about the project so they know it’s on the up and up.

  • Ask a Pro for Advice:

If all this sounds a bit much, don’t worry. Getting a financial advisor who knows their way around off-plan mortgages can clarify things. They’ll help you navigate everything and get the best deal.


Buying property in Dubai is like going on a real estate adventure, especially with off plan payment plans. The Construction-Linked plan connects payments to how much the building is done. The Time-Linked plan has fixed payments that are not linked to building stages. There’s also the Deferred Payment Plan for delaying some costs. Then, there are the 80/20, 60/40, and 50/50 plans, making money matters fair. You start with a 10-20% down payment. Post-handover plans to spread payments over 3-10 years, making homeownership easier. But mortgages can be tricky, as lenders check projects and create custom plans. Understanding these details helps make intelligent choices in Dubai’s exciting property scene.

Frequently Asked Questions (FAQs)

Why do Dubai off-plan property payment plans differ?

Dubai off plan payment plans vary based on project scale, location, and market conditions. Developers tailor their plans to attract diverse investors.

Can a payment plan be changed?

Payment plans are outlined in the sales agreement but can be changed with mutual consent. Developers may consider modifications based on individual circumstances.

What happens if I can't make payments?

Communication is key when facing financial challenges. Inform the developer early to explore solutions. Lack of communication may result in penalties or, in extreme cases, cancellation of the sales agreement.

How long is a typical payment plan?

The duration varies based on the developer and project, ranging from months to years. Shorter plans may require more upfront payments, while longer programmes offer flexibility.

Can I get a mortgage for off-plan properties in Dubai?

Yes, but it's more complex. Lenders assess project feasibility, developer reputation, and construction progress. Engage with financial advisors for suitable mortgage options.

How much is the off-plan property fee in Dubai?

Includes a 10-20% down payment and other charges like registration fees. Exact fees vary based on property value, developer policies, and sales agreement specifics. Review all costs for informed decisions.

kirti Bansal
kirti Bansal From psychology to philosophy and sales to content, Kirti has explored the complexity of emotional needs in depth. Over the past 3 years, she has covered different genres of writing and now shares her insights on interior designing, architecture, and real estate. But apart from the critical side, she is an inquisitive individual who is eager to dip her toes into new things.
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