What the numbers mean
The convention is simple: the first number is the share paid during construction, the second is the share paid at or after handover. It is market shorthand, not a regulated standard, so the exact schedule is whatever the sales and purchase agreement says — read the schedule, not the brochure.
| Structure | During construction | At or after handover | Suits |
|---|---|---|---|
| 80/20 or 70/30 | 70–80% | 20–30% on handover | Cash buyers, who often negotiate a discount for paying early |
| 60/40 | 60%, usually from a 10–20% booking payment | 40% on handover | The most common current structure |
| 50/50 or 40/60 | 40–50% | 50–60%, often stretched past handover | Buyers who want the smallest exposure while the build runs |
| Post-handover | 40–60% | Balance in monthly or quarterly instalments over 2–7 years, usually interest-free | Investors who want rent to service the balance |
| 1% monthly | Roughly 1% of price a month | Balloon or handover payment | Salaried buyers who want a predictable monthly outflow |
Escrow is the protection that matters
Your instalments do not go to the developer’s current account. Under Dubai Law No. 8 of 2007, every registered off-plan project has a project-specific escrow account with an approved bank. Money is released to the developer only against verified construction milestones, and it is ring-fenced from the developer’s other liabilities.
Two practical consequences. First, pay only into the project escrow account named in the sale agreement — never into a personal or agency account, however persuasive the story. Second, the registration system (Oqood) is where your purchase is recorded before title exists; if a project is not registered, it cannot legally be sold off-plan and you should stop there.
RERA also holds back 5% of a project’s value for a year after completion against post-handover defects. That is the developer’s incentive to finish properly, not a warranty for you personally.
Milestone-linked versus calendar-linked schedules
Some developers tie payments to verified construction progress — foundation complete, structure topped out, façade finished. Others bill against the calendar. A milestone schedule is the stronger protection, because it is harder to keep asking you for money while nothing rises out of the ground. Where you have a choice of payment plan on the same unit, the milestone-linked one is usually the one to take.
What can go wrong
- Delay. Escrow protects your money. It does not guarantee the handover date. Check the agreement’s delay clause and, more usefully, the developer’s record on previous handovers.
- The financing gap. A 60/40 plan does not mean you need 40% cash at handover — it means the balance falls due then, and you either pay it or arrange a mortgage. If the unit is handed over and you have not closed a mortgage, penalties start.
- Resale before completion. Most agreements allow it, some restrict it, and the developer may charge a transfer fee. Splitting a payment plan across a resale is a negotiation, not a right.
- Service charges after handover. They start when the association does, whether or not you have tenants.
Before you sign
- Read the full payment schedule and mark every date and amount.
- Confirm the escrow account number against the registered project record.
- Check the delay clause, the spec list and what is excluded from it.
- Confirm in writing what the developer covers — DLD fee, Oqood registration, service charge for the first year.
- Assume you pay the 4% transfer fee yourself unless the offer says otherwise.
Our project pages list what each developer publishes — starting prices, unit types and handover dates — so you can compare the schedule on offer rather than the marketing line about it.