Dubai Off-Plan Payment Plans Explained: 1%, 60/40, Post-Handover

General information, not legal or financial advice. Rules and fees change, so confirm current terms with the Dubai Land Department (DLD), RERA or a lawyer before you sign. Official sources were checked on 3 November 2026.

Short answer: No regulator in Dubai sets standard off-plan payment plans. Each developer sets its own schedule in the sale and purchase agreement (SPA), such as instalments during construction, a balance at handover or a post-handover plan. What you can check is whether payments are tied to construction progress and paid into the project's escrow account.

What types of off-plan payment plan are there?

Dubai Land Department (DLD) and RERA publish no list of approved plan ratios, so the labels you see (such as "60/40", "70/30" or "1% monthly") are developer marketing terms. A developer's own description of its structures includes:

• Construction-linked: instalments due as building stages are completed.
• Calendar instalments: fixed dates during construction.
• Ratio splits: for example a share during construction and the rest at handover.
• Post-handover plans: part of the price paid after you receive the unit; one developer describes versions lasting around 50 months.
• 1% monthly plans: a deposit and then 1% of the price a month. Danube Properties describes this as about 20% down, 1% monthly and the balance when the building is ready, but its projects use different structures in practice: see the Danube comparison.

What is a post-handover payment plan?

A post-handover payment plan lets you pay part of the price after you receive the unit, instead of paying everything before or at handover. Each developer sets its own terms, and some plans run for years after handover. Check the exact schedule, what happens if you miss an instalment, and whether you can resell before the final payment: see can you sell off-plan property before handover.

How do payments work under Dubai law?

• The schedule is agreed in the SPA. DLD's FAQ says the schedule is based on completion rates, and that you may ask a DLD-approved consultant for a letter stating the project's current completion percentage. You are not obliged to pay a stage until the project has reached it, unless confirmed otherwise.
• Payments for a registered project should go into its escrow account, held under Law No. 8 of 2007. A RERA circular of March 2025 says collecting project payments outside the designated escrow account is prohibited.
• If a developer refuses to tie payments to construction milestones proposed by RERA, the implementing bylaw lets a buyer ask a court to terminate the contract.

How to compare payment plans

Ignore the headline ratio and compare three numbers: cash due before handover, cash due at handover and anything due afterwards. Illustrative arithmetic only: on a AED 1,000,000 unit, a plan of 20% down and 1% a month for 40 months means AED 200,000 + 40 x AED 10,000 = AED 600,000 paid before handover and AED 400,000 due on completion. Whether the balance is due at handover or later changes how much financing you need. Then add fees: see off-plan fees and costs.

Question	Why it matters
Are instalments tied to completed stages or to dates?	Date-based plans can fall due before the work does
How much is due at handover?	You may need a mortgage or cash then: see off-plan mortgages
What happens if you miss a payment?	The developer may keep part of what you paid: see delays and cancellation
Are payments going to the escrow account named in the contract?	Payments outside it are a red flag

A low monthly figure does not make a property cheaper: compare the total price per square foot with ready units, and model your return at handover.

Related: how to buy property in Dubai, Dubai market and prices, the off-plan guide, the Dubai mortgage calculator and our Dubai city guide. Figures change, so confirm current rules with official sources. This is general information, not financial or legal advice.

Sources

• Dubai Land Department FAQ (checked 3 Nov 2026)
• Law No. (8) of 2007 on escrow accounts for real estate development in Dubai
• Executive Council Resolution No. (6) of 2010 (implementing bylaw of Law No. 13 of 2008)
• RERA circular 02-2025 on marketing and escrow compliance (19 March 2025)
• Danube Properties: 1% payment plan page (checked 3 Nov 2026)
• Danube Properties: flexible payment plans (11 Dec 2025)

Frequently asked questions

What is a 1% payment plan?

A developer-defined plan with a deposit and then 1% of the price each month, with a balance later. Danube Properties describes it as about 20% down, 1% monthly and the balance when the building is ready, but terms differ by project.

Is there a standard off-plan payment plan in Dubai?

No. DLD and RERA do not set standard ratios. Each developer sets its plan in the sale and purchase agreement.

Where should off-plan payments be paid?

Into the project's escrow account for a registered project. A RERA circular says collecting payments outside the designated escrow account is prohibited.

Do I have to pay if construction has not reached the stage?

DLD's FAQ says payment schedules are based on completion rates and you can request a completion letter from a DLD-approved consultant. Read your contract for the exact terms.

What is a post-handover payment plan?

A plan where part of the price is paid after you receive the unit. One developer describes versions of around 50 months. Check the total cost and what happens if you miss a payment.

What is a post-handover payment plan in Dubai?

A plan where part of the price is paid after you receive the unit. Each developer sets its own length and terms, so read the schedule and the default terms in the contract.