UAE off-plan glossary
Post-handover payment plan
Instalment tail that continues after the unit hands over, letting the buyer pay a portion of the price over 1–5 years post-completion.
A post-handover plan is a portion of the unit price that the buyer continues to pay in monthly or quarterly instalments after handover. Typical structures are 40/60 or 50/50 splits between pre- and post-handover, with the post-handover tail lasting 1–5 years.
These plans effectively let the buyer rent out the property and use the rental income to service part of the developer instalments, improving cash-flow at the cost of a slightly higher total price.
FAQ
What is a typical post-handover payment plan in Dubai?
60/40 and 50/50 are the most common structures. 60% paid during construction, 40% paid in monthly or quarterly instalments over 1–3 years post-handover is a very common Dubai post-handover plan.
Do post-handover plans cost more?
Sometimes. Developers occasionally price post-handover plans 2–5% above a cash-equivalent plan to compensate for the credit they're effectively extending. Always ask for the cash-discount equivalent and compare.
Can I pay off a post-handover plan early?
Yes, most developers allow early settlement of the post-handover tail without penalty — and some offer a small discount for it. Check the SPA's early settlement clause before signing.