One of the main reasons people buy off-plan in Dubai is the payment plan. Instead of paying the full price upfront, you pay in stages while the building goes up, and sometimes for a while after you get the keys. Here is how these plans actually work in 2026, the structures you will come across, a simple example, and what to look at before you sign.
What is an off-plan payment plan?
It is the schedule a developer sets for paying off a property that is still being built. You put down a booking deposit to hold the unit, then pay a series of instalments, usually linked to construction milestones, with the final part due when the project is handed over. Because the payments are spread out, you need far less cash upfront than you would for a ready home.
The booking deposit
To reserve a unit you pay a booking deposit, usually somewhere between 5% and 20% of the price. That is the first payment in your plan, and it locks in the launch price.
Common payment structures
You will see a few different splits:
- 40/60. Around 40% is paid in instalments during construction and 60% on handover. This is what TownX uses on Ashley Hills and 11 Hills Park.
- 50/50 and 60/40. The same idea, weighted a little more or less towards handover.
- 80/20. More is paid during construction, with just 20% left at handover. Developers sometimes attach a small discount to these.
The DLD fee and registration
On top of the price, budget for the Dubai Land Department fee of 4%, which is usually paid early on, plus the Oqood registration fee for off-plan units. See our full breakdown of the real cost of buying property in Dubai, including DLD fees for the complete picture.
A simple example
Say an apartment is priced at AED 1,000,000 on a 40/60 plan:
- Booking deposit (say 20%): AED 200,000 to reserve
- During construction (the remaining 20% of the 40%): AED 200,000 across milestone payments
- On handover (60%): AED 600,000
- DLD fee (4%): AED 40,000
So you would pay AED 400,000 plus the DLD fee while it is being built, and the bigger AED 600,000 when the home is ready. Splits vary from one developer to the next, so treat this as a rough guide.
Is your money safe?
It is, and this is one of the better things about buying in Dubai. Developers are required by law to put buyer payments into a RERA-registered escrow account tied to that specific project. The money is only released to the developer as construction progress is verified, which is exactly why it pays to buy from a registered developer on a registered project.
The trade-offs
The upsides are clear. You need less cash upfront, you can plan around the payments, the value may rise before handover, and you get a brand-new home. The catch is that you are waiting for the project to finish and trusting the developer to deliver it, which is why their track record matters so much.
What to check before you sign
- The full payment schedule, and what triggers each instalment
- That the project uses a RERA escrow account
- The handover date, and whether there is a grace period
- What happens if you pay late or want to cancel
- The developer’s delivery record. TownX, for example, has handed over more than 1,567 apartments in Dubai since 2017.
TownX projects and their plans
- Ashley Hills, Arjan. From AED 839,000 on a 40/60 plan, handover soon.
- 11 Hills Park, Dubai Science Park. From AED 949,000 on a 40/60 plan, handover soon..
New to all this? Our guide to the best off-plan investments in Dubai 2026 is a good place to start.
Frequently asked questions
What is a 40/60 payment plan in Dubai?
You pay about 40% in instalments while the property is being built, and the remaining 60% when it is handed over.
What is a post-handover payment plan?
One where you carry on paying part of the price after you have received the keys, often monthly or quarterly over one to three years.
How much deposit do I need for off-plan in Dubai?
Usually a booking deposit of around 5% to 20% of the price.
When do I pay the DLD fee?
The 4% Dubai Land Department fee is normally paid early in the process, at registration.
Is off-plan money protected in Dubai?
Yes. Developers have to hold buyer payments in a RERA-registered escrow account, and the funds are only released as construction is verified.
Want help finding a payment plan that fits your budget? Talk to the TownX team.