How Dubai off-plan payment plans actually work
“1% a month” and “60/40” get quoted a lot. Here is what the common structures really mean for your cash flow.
Off-plan property in Dubai is sold on construction-linked or post-handover payment plans. The headline numbers are easy to misread, so it helps to see how the money actually flows before you sign.
Construction-linked (60/40, 70/30)
You pay a booking deposit, often 10–20%, then instalments tied to build milestones, with the balance (the second number) due on handover. Your capital goes in gradually as the tower rises.
1% monthly plans
Popularised by Danube, these break payments into small monthly instalments during, and sometimes after, construction. The entry point is low, but read carefully whether the plan runs post-handover and what any final balloon payment looks like.
Post-handover plans
Some developers let you keep paying for two to five years after you collect the keys, so rental income can help cover the instalments. Attractive for cash flow, but usually priced a little higher.
The fees people forget
- 4% Dubai Land Department fee on the purchase price.
- Oqood registration for off-plan units.
- Admin and NOC charges that vary by developer.
We lay every plan for a project side by side, in plain numbers, so you can compare like for like rather than headline for headline.
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