In short: off-plan plans split the price into a booking payment, instalments during construction, a payment at handover and sometimes instalments after handover. Compare how much you must have paid by handover, how you will fund the handover balance, and the total cost including fees, not just the headline split.
The main types
Construction-linked
Instalments fall due as the project reaches construction milestones. If the build slows, so do your payments.
Time-based
Instalments fall due on fixed dates, such as quarterly or monthly, regardless of progress on site.
Post-handover
Part of the price is paid in instalments after you receive the keys, often over several years. This reduces the amount due at handover and can let rental income help cover the remaining instalments.
A worked comparison
An illustrative AED 3,000,000 unit under two common structures. These are not real projects or offers.
| Stage | Plan A · 60/40 | Plan B · post-handover |
|---|---|---|
| Booking | 10% · AED 300,000 | 10% · AED 300,000 |
| During construction | 50% · AED 1,500,000 | 30% · AED 900,000 |
| On handover | 40% · AED 1,200,000 | 10% · AED 300,000 |
| After handover | None | 50% · AED 1,500,000 over 3 years |
| Paid by handover | AED 3,000,000 | AED 1,500,000 |
Add the Dubai Land Department registration fee on top. At 4% (officially split between buyer and seller, but in off-plan sales usually passed in full to the buyer), that is AED 120,000 on this example, usually due at registration.
What to compare
- Paid by handover. The most important number for your cash flow and your risk.
- The handover balance. Will you pay it in cash or with a mortgage? Banks lend against the property's value at that time, under rules that depend on your residency status.
- Total cost. A generous plan can come with a higher price. Compare price per square foot across plans and projects.
- Resale conditions. Many developers require a minimum percentage to be paid before you can resell, so the plan shapes when you can exit.
- Overlap. If you hold several off-plan units, make sure their instalments do not fall due at the same time.
This guide is general information, not financial advice. I'll model a specific plan against your cash flow.