How off-plan payment plans work
Your payment plan is part of the sale and purchase agreement (SPA). It sets out how much you pay and when. Most plans combine a booking deposit, instalments during construction and a final payment at handover.
- Linked to construction: DLD says the payment schedule is based on completion rates. When the developer asks for an instalment, you can ask for a letter from the DLD-approved project consultant confirming the current completion percentage. DLD's FAQ says you are not obliged to pay unless it is confirmed that the project has reached the stage set in your schedule.
- Paid into escrow: instalments go into the project's escrow account. Under Law No. 8 of 2007, that account can only be used to build the project.
- Registration fee: DLD's 4% registration fee is a government fee calculated on the price. DLD has said the buyer pays it to the developer so the sale can be registered on the Interim Register (Oqood).
You can check progress yourself with DLD's Project Status Enquiry or in the Dubai REST app. To see a plan's schedule in dirhams, use our off-plan payment calculator.
Post-handover payment plans: what to check
A post-handover plan lets you take the keys before you have paid the full price. You pay the balance to the developer in instalments over an agreed period after handover. This can ease your cash flow, and if you let the property, rental income can help cover the payments. The terms vary from developer to developer, so get them in writing.
Use the SPA to answer these questions before you sign:
- How much is due by handover, how much afterwards, and over what period?
- When is the title deed issued? Ask whether it is issued at handover with the developer's interest registered against it, or only after the final payment.
- Is there interest or an administration fee on post-handover instalments, and what are the penalties for paying late?
- When do service charges start?
- Can you sell or refinance before the final instalment, and on what conditions?
Our post-handover payment plans guide explains each point in detail. Projects due to complete soon are listed under handover in 2026.
What happens if you miss an instalment
Dubai law sets clear consequences for missing an off-plan payment, so keep a cash buffer in your plan. The procedure is in Article 11 of Law No. 13 of 2008, which Law No. 19 of 2017 replaced with new wording.
- The developer notifies DLD of the missed payment.
- DLD gives the buyer 30 days' notice to pay and, where possible, helps the two sides reach a settlement.
- If the buyer neither pays nor settles, the developer's options depend on how complete the unit is, measured under RERA standards.
- Above 80% complete: the developer can keep the contract and claim the balance, ask DLD to auction the unit, or cancel the contract and keep up to 40% of the unit's value.
- 60% to 80% complete: the developer can cancel and keep up to 40%.
- Construction started but below 60%: the developer can cancel and keep up to 25%.
- Construction not started for reasons beyond the developer's control: the developer can cancel and keep up to 30% of what has been paid.
The developer must refund anything above these amounts within the deadlines set by the law. Buyers can still go to court or arbitration if a developer abuses these powers.
How to compare payment plans
Compare plans on total cost and timing, not just the headline split. Two projects with the same percentages can put very different demands on your cash flow.
- Total price: a longer or more flexible plan may come with a higher price than paying more upfront. Ask for both options.
- Timing: map every instalment against your income and savings, including the DLD fee due at registration.
- Handover payment: if you plan to pay it with a mortgage, check early whether a bank will lend on the unit and at what valuation. See our off-plan mortgage guide and how to get a mortgage in Dubai.
- Stage-linked or date-linked: check whether instalments fall due at construction stages or on fixed dates. Stage-linked payments wait for progress on site.
- Selling before handover: if you might sell before handover, find out how much you must have paid first. See selling before handover.
Use our off-plan payment calculator to set the schedules side by side.
