# Dubai off-plan payment plans: 60/40, 80/20, 1% per month and post-handover

> How do Dubai off-plan payment plans work? 60/40, 80/20, 1% per month, 50/50 milestone and post-handover structures, reservation deposits and mortgage caps.

- Source: https://nour-properties.com/en/news/dubai-off-plan-payment-plans/
- Last updated: 2026-07-31
- Published: 2026-07-31
- Category: Strategy
- Language: en
- Publisher: Nour Properties (https://nour-properties.com)

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**In short:**

- You pay for off-plan property in stages, tied to a fixed schedule or to construction progress, instead of one lump sum.
- The common structures are 60/40, 80/20, 1% per month, 50/50 milestone and post-handover.
- No plan is inherently cheaper. The total price stays the same; only the timing of the money changes.
- The plan covers the purchase price. The 4% transfer fee is paid separately.
- Banks lend at most 50% of the value on off-plan property to non-resident buyers.

Which structure fits you depends on when you want the cash flow to start and how much capital you can keep tied up during construction. Below we walk through the five main plans, the reservation deposit, and where a mortgage fits in.

## What is an off-plan payment plan?

**An off-plan payment plan is the schedule the developer sets for paying the purchase price before the building exists.** Instead of transferring the full amount at the Trustee Office as you would for a ready property, you pay a reservation deposit, sign the sales agreement, then pay instalments as construction, or the calendar, hits agreed points.

Off-plan made up roughly 73% of all residential sales in Dubai in Q1 2026 (Dubai Land Department data, via industry reporting), and the payment plan is the main reason. It lowers the cash you need on day one and spreads the rest across the two to five years a project usually takes to reach handover. Whether that logic beats buying something you can rent out immediately is what we break down in our [off-plan vs ready comparison](https://nour-properties.com/en/news/off-plan-vs-ready-property-dubai/).

One thing to settle up front: the plan covers the purchase price only. The 4% Dubai Land Department transfer fee sits outside it and is paid separately, unless the developer is running a fee-waiver promotion. The full cost breakdown is itemised in our [Dubai property buyers guide](https://nour-properties.com/en/guides/dubai-property-buyers-guide/).

## 60/40 vs 80/20: what is the difference?

**Both plans split the price into a construction portion and a handover portion, just at different ratios.** A 60/40 plan has you paying 60% during construction and the remaining 40% at handover. It suits investors planning to rent the unit out once they get the keys, since the smaller final payment is easier to fund from savings or a mortgage. An 80/20 plan front-loads more, 80% during the build and 20% at handover, which works better for end-users and long-term holders who would rather clear most of the balance early.

Neither structure is inherently cheaper. The total price is usually the same either way, so the choice comes down to how much cash you want tied up during construction versus left for after handover.

## What does a 1% per month plan look like?

**You put down a modest deposit, then pay 1% of the purchase price every month until you reach the agreed total.** These plans are often timed to run through to or past handover. On an AED 1,500,000 unit, that is roughly AED 15,000 a month, a fixed, predictable outlay rather than a handful of large milestone payments.

This structure suits first-time buyers and anyone managing monthly outgoings closely, because the number is small enough to plan around and does not require saving a lump sum every few months. The trade-off is a long run of payments, so it only works if your income stays steady enough to sustain it without interruption.

## What is a 50/50 milestone plan?

**A 50/50 milestone plan ties your payments to actual construction progress rather than a fixed calendar.** You pay a percentage as the project hits stages like foundation completion, structural work and finishing, roughly splitting the total between the build period and handover.

There is a less obvious benefit here. If the developer runs ahead of schedule, you pay faster; if they slip, so does your payment timeline. A payment request that fails to arrive is often the first visible sign that a project has hit a delay.

## What is a post-handover payment plan?

**A post-handover payment plan is the one structure that keeps you paying after you already own the property and hold the keys.** A typical version runs 60% during construction and spreads the remaining 40% over one to three years after handover, rather than closing everything out the day you take possession.

The difference from 60/40 or 80/20 is timing, not proportion. Those two plans finish at handover, while post-handover carries part of the balance forward. That makes it the natural fit for an investor planning to let rental income from the finished unit cover the final instalments, effectively funding part of the purchase through the tenant.

It is not available everywhere. Developers add post-handover terms selectively, usually to sell out a launch faster, so check project by project rather than assuming.

## Which plan suits which buyer?

| Payment plan | Structure | Best suited for |
|---|---|---|
| 60/40 | 60% during construction, 40% at handover | Investors planning to rent out from handover |
| 80/20 | 80% during construction, 20% at handover | End-users and long-term holders who want a small final payment |
| 1% per month | Small deposit, then 1% of the price monthly until the agreed total | First-time buyers or anyone managing cash flow closely |
| 50/50 milestone | Payments tied to construction progress, not a fixed date | Buyers who want their outlay to track real building progress |
| Post-handover | 60% during construction, 40% spread over 1-3 years after handover | Investors planning to use rental income to cover the final instalments |

We check the milestone triggers in the sales agreement against what the brochure promises before any client signs, because the two do not always match, and the annex is what an arbitrator would enforce. We also look at which plans are actually running in which district; the main investor areas are compared in our [Dubai area guide](https://nour-properties.com/en/guides/dubai-area-guide/).

## How big is the reservation deposit?

**Most off-plan reservations start at a 10 to 20% booking deposit, paid to hold the unit before you sign the full sales agreement.** On an AED 1,500,000 apartment, that is typically AED 150,000 to AED 300,000.

Refundable terms vary by developer, so confirm them in writing before you pay. Once the reservation is in place, the deposit usually counts toward the first instalment rather than sitting on top of it.

Your instalments then go into an escrow account, released to the developer only as construction progresses. It is one of the strongest buyer protections in Dubai's rulebook: if the building stalls, so does the money.

## Can I get a mortgage alongside a payment plan?

**Yes, but the maximum loan-to-value for off-plan property is 50% for non-resident buyers.** That is half of what is typically available on a ready unit, so you fund at least half the price yourself, through the developer's instalments, savings, or a mix of both.

Some banks also restrict which off-plan projects they will lend against, so pre-approval is not automatic just because you have reserved a unit. A handful of developers offer post-handover financing or milestone-based approval on select projects, which can bridge the gap, but confirm that directly with the lender before you commit.

If residency is also a goal, note that on off-plan purchases the AED 2,000,000 Golden Visa threshold is assessed on the amount actually paid in, not the full contract value. The conditions are set out in our [Golden Visa and Dubai property article](https://nour-properties.com/en/news/golden-visa-dubai-property/).

## Which plan should you start with?

The one that fits your own cash flow, not the one the launch brochure presents best. If you are not sure which that is, we will walk through your numbers in a private consultation, model the payment schedule across the next five years, and only then look at projects. For the full purchase process, start with the [Dubai property buyers guide](https://nour-properties.com/en/guides/dubai-property-buyers-guide/), no phone call required.

## FAQ

### What happens if I miss an instalment on my off-plan payment plan?

It depends on the sales agreement's cancellation and penalty clauses, which vary by developer. Typical terms let the developer charge a late fee first, and repeated default can lead to cancellation with part of your paid amount forfeited. Review these clauses before you sign, not after a payment is already missed.

### Do off-plan payment plans include the Dubai Land Department transfer fee?

No. The plan covers the purchase price only. The 4% transfer fee, Trustee Office charges and agency commission are paid separately, usually at reservation or registration. Some developers run promotions covering the transfer fee, but that is a marketing incentive, not part of the standard plan.

### Can I switch to a different payment plan after signing the sales agreement?

Rarely, and only at the developer's discretion. The plan is fixed in the contract at signing, so switching from, say, 80/20 to post-handover means renegotiating with the developer directly, if they are willing at all. Choosing the right structure before you sign is far easier.

### Is the 1% per month plan a more expensive way to buy off-plan?

Not inherently. The total purchase price is generally the same regardless of the plan, since it is a cash-flow structure rather than a pricing structure. What changes is how that total is spread over time.

### Can I sell an off-plan property before I have finished paying the plan?

Often yes, once you have typically paid 30 to 40% of the price and the developer approves the transfer. The sale is structured as an assignment of the contract rather than a resale, with costs that include a developer admin fee, transfer costs and any outstanding instalments the new buyer takes on.

### Does an off-plan payment plan affect my Golden Visa eligibility?

It can affect the timing. The Golden Visa property threshold is AED 2,000,000, and for off-plan purchases eligibility rests on the amount actually paid in, not the full contract value. Reaching that mark can take a year or more on a long plan.

### Are post-handover payment plans available on every project?

No. Developers offer post-handover terms selectively, often on specific launches rather than across their portfolio. If that structure matters to your plans, check availability on the project you are considering, since the length of the post-handover period also varies.