Payment plans in Dubai: how developer instalments work (60/40, 10/50/40, post-handover)

In short: a payment plan is the schedule of instalments written into your contract with a developer in Dubai. The numbers in its name – for example 60/40 or 10/50/40 – tell you what share of the price you pay at each stage: at reservation, during construction, at handover and sometimes after handover (post-handover). Instalments during construction go into the project's escrow account, and according to the Dubai Land Department they are linked to the progress of the works. A payment plan is not a bank loan: there is no creditworthiness check, but every instalment is mandatory, and failing to pay has serious consequences.

Updated: November 2026

Key facts

• The plan comes from the contract (SPA): every developer and every project has its own schedule – the structures below are examples, not an offer.
• At the start: the first instalment and the DLD registration fee of 4% of the price – both paid when the contract is signed.
• During construction: instalments into the escrow account, linked to construction stages.
• Post-handover: you pay part of the price after receiving the keys, directly under the contract with the developer.
• Currency: you pay in dirhams (AED), and the zloty-to-dirham rate changes throughout the repayment period.
• Arrears: Art. 11 of Law No. 13 of 2008 allows the developer to terminate the contract and retain up to 25–40% of the unit's value.

How to read the name of a plan

Developers in Dubai describe the schedule with a shorthand of numbers that add up to 100. 60/40 usually means you pay 60% of the price up to the end of construction and 40% at handover. 10/50/40 has three parts: 10% at the start, 50% during construction and 40% at or after handover. The same shorthand is sometimes understood differently, though, so always check the contract for the exact dates or construction stages each instalment is tied to, and for the amounts in dirhams.

Example structures

Structure	What it usually looks like	Who it suits
60/40	About 10–20% at signing, the rest of the 60% in instalments during construction, 40% at handover	People who will pay the remainder at handover from savings, the sale of another property or a loan
50/50	Half during construction, half at handover	Similar to 60/40 – a larger payment at the end
70/30, 80/20	Most of the price during construction, a smaller part at handover	Cash buyers who do not want a large payment at the end
Post-handover, e.g. 10/50/40	10% at the start, 50% during construction, 40% in instalments over a set period after receiving the keys	People who want to spread part of the price over the period after handover

An example in numbers

Let us assume an off-plan flat priced at AED 1,500,000 with a 10/50/40 plan (40% after handover). The amounts are illustrative and exclude administrative fees:

Stage	Share of the price	Amount
Signing the contract – first instalment	10%	AED 150,000
Signing the contract – DLD fee	4%	AED 60,000
During construction (e.g. several instalments by stage)	50%	AED 750,000
After handover (instalments under the contract)	40%	AED 600,000
Total including the DLD fee	104%	AED 1,560,000

The DLD fee is 4% of the price in total. In its announcement of 31 May 2021, the Dubai Land Department reminded that for off-plan purchases the buyer pays the registration fee to the developer, and the developer passes it on to the DLD within 60 days. We describe the remaining costs in the article Dubai property buying costs.

Instalments and construction progress

According to the Dubai Land Department FAQ, the payment schedule follows the construction stages. If the stage an instalment is tied to has not been confirmed, the buyer is not obliged to pay it. Before paying, you can check progress in the DLD's project tracking service or ask for confirmation from a project consultant approved by the DLD. You pay instalments during construction only into the project's escrow account – more in the article Dubai off-plan: escrow account and Oqood.

Be careful with plans where instalments are tied to dates rather than construction stages. In that case what matters is what the contract says about delays – and whether an instalment due “after 24 months” is payable even when construction is behind schedule.

A post-handover plan – what to look at

A plan with payments after handover lets you take the keys before you have paid the whole price. Before signing, ask:

• How many instalments and how often: monthly, quarterly or in a few larger amounts – and over what period.
• Whether the price is the same as with a shorter plan: compare the price of the unit under different plans from the same developer.
• When you will get the title deed: under Art. 8 of Law No. 13 of 2008, the DLD registers the unit in the main register in the buyer's name once the buyer has fulfilled the contract. Ask in what form the developer secures the rest of the price and how this affects letting or selling the unit.
• What happens if you sell before the balance is paid: whether the developer will issue an NOC and on what terms.

What if you do not pay an instalment

Under Art. 11 of Law No. 13 of 2008 (as worded in Law No. 19 of 2020), the developer reports the arrears to the DLD, and the DLD calls on the buyer to pay within 30 days. If the arrears are not settled, the developer – depending on how far construction has progressed – may terminate the contract and retain up to 25% (construction below 60%) or up to 40% of the unit's value (above 60%). Where construction is more than 80% complete, the developer may also demand the rest of the price or apply for the unit to be auctioned.

In practice: plan your instalments with a margin, also in case the zloty weakens, and do not assume you will pay an after-handover instalment out of rental income.

Paying at handover with a bank loan

With plans such as 60/40 or 50/50, a large part of the price falls due on the day of handover. Some buyers plan to cover it with a mortgage from a bank in the UAE. That is possible, but the bank then assesses your situation as of the handover date – two or three years from now – and applies its own criteria for non-residents, as well as loan-to-value limits set by the Central Bank of the UAE. If you are counting on financing, ask the bank about indicative terms before signing the contract with the developer, and have a fallback plan in case the loan turns out lower than assumed. The central bank limits and the costs of such a loan are covered in UAE mortgages for non-residents.

How to fit the plan to a budget from Poland

• Payment calendar: list all instalments with dates or construction stages and check what funds you will use to pay each one.
• Margin: add a reserve for changes in the zloty exchange rate and for bank fees on international transfers.
• Selling a flat in Poland: if you want to fund the instalments from that sale, line up the date of the notarial deed with the payment date in Dubai.
• No “I will pay it from rent” assumption: rental income depends on the market, costs and vacancies – it is not guaranteed.

Currency risk

The dirham is pegged to the US dollar – the Central Bank of the UAE publishes a fixed rate of AED 3.6725 per USD 1 (CBUAE exchange rate table). The zloty-to-dollar rate moves, so with a schedule running 3–5 years, the same instalment in dirhams may cost different amounts in zloty. Some buyers pay from a dollar or euro account – it is worth comparing conversion costs at your bank.

Questions to ask the developer before signing

• What are the exact dates or construction stages for each instalment?
• What is the project's escrow account number?
• How much is the DLD fee and what administrative fees does the developer charge?
• What does the contract say about construction delays and late payment?
• Does the price depend on the plan chosen?
• On what terms can the unit be sold before handover or before the post-handover instalments are paid off?

How we help

We compare payment plans across several projects, convert them into a schedule in dirhams and show how much you need in your account, and when. We do not promise profit or price growth. We hold Dubai consultations in Polish, Russian, Ukrainian and English. Where to start when buying is described in the article How to buy property in Dubai from Poland. Ask about a consultation.

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