Reading off-plan payment plans without getting confused

An off-plan payment plan is expressed as a split between what you pay during construction and what you pay at or after handover. Common splits in 2026:

- 50/50 — 50 % over construction milestones, 50 % on handover. Lower during construction, higher lump at keys. Good if you intend to mortgage the back-end. - 60/40 — 60 % during construction, 40 % on handover. Most common Emaar plan. Balanced. - 70/30 — 70 % during construction, 30 % on handover. More common with Sobha and Nakheel. Lower handover cheque. - Post-handover 40/60 — 40 % during construction, 60 % paid over 2–3 years after handover. Marketed heavily by DAMAC. Effectively a developer-financed product; you will sometimes find that the list price is a few percent higher to absorb the financing cost. - 1 % monthly — 1 % per month until a capped percentage is reached, then the balance at handover. Marketed by boutique developers.

How to evaluate a plan objectively:

1. Convert the plan into a cash-flow table: how many AED do I owe, in which quarter of which year, for the next 24–36 months? 2. Net out any rental income you could earn on that capital deployed elsewhere — a 70/30 plan that front-loads your capital has an opportunity cost relative to a 40/60 post-handover plan. 3. Check the DLD OQOOD registration fee — it is 4 % of purchase price, paid once, typically at booking. Some developers absorb this; some pass it on. 4. Confirm the handover date in writing. A delay past the advertised date gives you a contractual right to a delay penalty in most cases. 5. Get the price-per-square-foot benchmark for completed comparable stock in the same community. Off-plan should typically price 10–25 % below ready stock in the same community for a comparable specification; anything less and the off-plan premium is thin.

Escrow confirmation. All off-plan sales in Dubai must be sold into a developer escrow account registered with the DLD. The escrow account number is recorded in the DLD OQOOD certificate. Our practice: we confirm the escrow account number is active and holds funds from at least 15 other buyers before we advise clients to book.

Assignment and resale of off-plan: You can assign an off-plan unit to another buyer before handover, but only after the construction has passed a developer-specific threshold (typically 30 %) and only with the developer's written consent. Assignment fees are typically 2–4 % of the original purchase price.