The single biggest difference between buying property in Dubai and buying in India, the UK or most other markets is the developer payment plan. Instead of paying the full price or taking a mortgage up front, you pay the developer in instalments. Used well, it spreads the cost over years. Used carelessly, it hides real costs. This guide explains the common formats and then walks through two complete schedules taken from real October 2026 launches.
The basic structure
A payment plan usually has three parts: a down payment at booking (commonly 10–20%), instalments during construction, and a balance at or after handover. For off-plan sales, buyer payments are meant to go into a project-specific escrow account that the developer registers with the Dubai Land Department (DLD), not into the developer's general account.1 Your purchase is also registered with DLD through its Oqood system until the title deed is issued.2
The formats you will see
- Construction-linked or time-linked plans, for example 60/40 or 30/70: the first number is the share paid before completion, the second is paid on completion.
- 1% monthly plans: a down payment, then roughly 1% of the price per month. Always read the full schedule, because many include larger lump sums in certain months (see the worked example below).
- Post-handover plans: part of the price is paid after you receive the keys, sometimes while the unit is already rented.
Worked example 1: a 60/40 plan with monthly instalments
DAMAC's Violet 4 Phase 3 townhouses in DAMAC Hills 2 were launched in October 2026 from AED 2.19 million with a 60/40 plan: 20% on booking, 40% in instalments over 24 months, and 40% on completion.3 Here is the full schedule for a unit at the starting price of AED 2,190,000.
| Milestone | Share of price | Amount | Cumulative share | Cumulative paid |
|---|---|---|---|---|
| On booking | 20% | AED 438,000 | 20% | AED 438,000 |
| Month 3 | 1% | AED 21,900 | 21% | AED 459,900 |
| Month 4 | 1% | AED 21,900 | 22% | AED 481,800 |
| Month 5 | 1% | AED 21,900 | 23% | AED 503,700 |
| Month 6 | 4% | AED 87,600 | 27% | AED 591,300 |
| Month 7 | 1% | AED 21,900 | 28% | AED 613,200 |
| Month 8 | 1% | AED 21,900 | 29% | AED 635,100 |
| Month 9 | 1% | AED 21,900 | 30% | AED 657,000 |
| Month 10 | 1% | AED 21,900 | 31% | AED 678,900 |
| Month 11 | 1% | AED 21,900 | 32% | AED 700,800 |
| Month 12 | 4% | AED 87,600 | 36% | AED 788,400 |
| Month 13 | 1% | AED 21,900 | 37% | AED 810,300 |
| Month 14 | 1% | AED 21,900 | 38% | AED 832,200 |
| Month 15 | 4% | AED 87,600 | 42% | AED 919,800 |
| Month 16 | 1% | AED 21,900 | 43% | AED 941,700 |
| Month 17 | 1% | AED 21,900 | 44% | AED 963,600 |
| Month 18 | 4% | AED 87,600 | 48% | AED 1,051,200 |
| Month 19 | 1% | AED 21,900 | 49% | AED 1,073,100 |
| Month 20 | 1% | AED 21,900 | 50% | AED 1,095,000 |
| Month 21 | 4% | AED 87,600 | 54% | AED 1,182,600 |
| Month 22 | 1% | AED 21,900 | 55% | AED 1,204,500 |
| Month 23 | 1% | AED 21,900 | 56% | AED 1,226,400 |
| Month 24 | 4% | AED 87,600 | 60% | AED 1,314,000 |
| Completion | 40% | AED 876,000 | 100% | AED 2,190,000 |
Instalments in months 6, 12, 15, 18, 21 and 24 are 4% each; every other month from 3 to 24 is 1%. The handover date was not stated on the one-pager, so the completion payment cannot yet be placed on a calendar. Amounts are rounded to whole dirhams.
What this schedule means in cash terms
- Cash out before completion: 60% of the price, AED 1,314,000, within about two years.
- Balance on completion: AED 876,000. You need either this amount in cash or a mortgage approved for it. Ask a bank early what it would lend on a unit you have not yet received.
- The monthly figure is misleading: a 1% month is AED 21,900, but a 4% month is AED 87,600. Plan for the large months, not the small ones.
- DLD registration fee: 4% of the price is AED 87,600. The launch offer advertised a waiver of this fee for 7 days from launch, so confirm whether it still applies on the day you book.3 Other registration and administrative fees are charged on top and vary, so we quote the exact figures from the DLD schedule in writing.2
Worked example 2: a 30/70 plan with a large handover payment
Danube Properties' Shahrukhz Residences in Dubai Maritime City uses a 30/70 plan with handover in December 2029.4 For a studio at the starting price of AED 1,650,000:
| Milestone | Share of price | Amount | Cumulative paid |
|---|---|---|---|
| Booking, within 21 days | 10% | AED 165,000 | AED 165,000 |
| 2 months from booking | 10% | AED 165,000 | AED 330,000 |
| 10 months from booking | 5% | AED 82,500 | AED 412,500 |
| 18 months from booking | 5% | AED 82,500 | AED 495,000 |
| Handover, December 2029 | 70% | AED 1,155,000 | AED 1,650,000 |
Based on Danube's October 2026 launch presentation; prices and plans can change at allocation. Excludes the 4% DLD fee (AED 66,000 on this price) and other costs.
Comparing the two
Plan 2 asks for far less cash up front (30% against 60%), but leaves 70% to find at handover, which is AED 1,155,000 on this unit. Neither is better in general. The right plan depends on whether you will have the money at completion, whether you plan to sell or rent, and how long you are comfortable waiting.
How we compare plans for clients
- Total cash out before handover, not the monthly figure. Two "1% plans" can differ hugely in down payment and lump-sum months.
- The completion payment and how you will fund it (cash, mortgage, or sale before handover).
- Price premium against ready property. Flexible plans can carry a higher price per square foot than comparable ready homes.
- Developer delivery record. A generous plan from a developer who delivers late is not generous. Check the project is registered and has an escrow account.1
- Resale rules. When you can assign your contract before handover, and what the developer charges.
Send us any project's payment plan and we will return a plain-language month-by-month breakdown of your cash flow, in the same format as the tables above, before you commit to anything.
Sources
- Dubai Land Department, "Register Project" service: developer registration of off-plan projects and escrow account opening. dubailand.gov.ae
- Dubai Land Department, "Request to register the initial sale" service (Oqood provisional registration of off-plan sales). dubailand.gov.ae
- DAMAC Properties, Violet 4 Phase 3 offer one-pager, October 2026 (price, 60/40 plan, 4% DLD waiver for 7 days from launch).
- Danube Properties, Shahrukhz Residences launch presentation, October 2026 (prices, 30/70 plan, December 2029 handover).