UAE off-plan glossary
Payment plan
Structured instalment schedule that splits the unit price into a down-payment, construction-linked stages, and a handover payment.
A payment plan is the schedule under which a buyer settles the unit price across the lifecycle of an off-plan project. UAE plans are typically structured as: a down-payment (5–20%), construction-linked instalments tied to milestones (foundation, structure, MEP, etc.), a handover payment due on completion, and — increasingly common — a post-handover instalment tail spanning 1–5 years.
Popular variants include 80/20 (80% during construction, 20% on handover), 60/40 (60% during construction, 40% post-handover) and 1% monthly plans during construction.
FAQ
What's a typical down-payment in the UAE?
Most off-plan projects ask for 5–20% on signing. The DLD registration fee of 4% is paid separately at the time of the initial purchase.
Can I get a mortgage for off-plan property?
Yes, but only at handover for most banks. A few UAE lenders offer construction-stage mortgages, typically capped at 50% LTV with a higher interest rate.