Buyer's Guides · 10 min · 2026-04-19
Dubai Payment Plans Decoded: 60/40, 50/50, 80/20, Post-Handover
Every common Dubai off-plan payment plan structure explained with an illustrative example, and how to compare their effect on your cash flow and IRR in the simulator.
Why Payment Plan Structure Matters as Much as the Price
A 60/40 plan and a 50/50 post-handover plan on the same property at the same price put very different demands on your cash, and therefore lead to different returns on the capital you deploy. The plan structure determines:
- How much capital you deploy and when
- Your effective leverage during construction
- Whether your monthly cash flow is positive or negative after handover
- Your options if you want to sell before handover (check the developer's resale conditions)
Model your exact plan in the free off-plan simulator.
The Main Plan Structures
Each developer sets its own plan for each project; the exact schedule is in the sale agreement.
60/40
- 60% during construction, in instalments
- 40% on handover
- Suits: buyers with steady savings who are ready to pay or finance the balance at handover
50/50 Post-Handover (PHPP)
- 50% during construction
- 50% spread over a period AFTER handover, as agreed with the developer
- Suits: buyers who want rent to start before the price is fully paid
80/20
- 80% during construction
- 20% on handover
- Some developers offer a discount for early or larger payments: ask for it in writing
- Suits: cash buyers
1% Monthly Plans
- A booking amount, then 1% of the price per month
- Suits: buyers who prefer small, regular payments
Construction-Linked Plans (CLP)
- Instalments tied to construction milestones
- Each tranche is due when the developer reaches a stage
- Suits: buyers who want payments to follow actual progress
Illustrative Example: AED 2M Apartment
The figures below are hypothetical and only show how cash goes out under each structure. They are not offers from any developer.
| Plan | During construction | At handover | After handover |
|---|---|---|---|
| 60/40 | AED 1,200,000 | AED 800,000 | 0 |
| 50/50 PHPP | AED 1,000,000 | 0 | AED 1,000,000 over the agreed period |
| 80/20 | AED 1,600,000 | AED 400,000 | 0 |
| 1% monthly | Booking + AED 20,000 per month | As per schedule | As per schedule |
The DLD registration fee (4% of the price, DLD) comes on top. To see the IRR and cash flow of each plan with your own rent and price assumptions, run them one by one in the ROI simulator and keep the three scenarios side by side.
When Mortgage Enters the Picture
Lenders set their own conditions for financing off-plan units, within the 50% cap of the Central Bank of the UAE regulation. A post-handover plan spreads part of the price over the period agreed with the developer: check in the sale agreement whether any charge applies. You can model a mortgage of up to 25 years in the mortgage simulator.
Points to Check Before Signing
- Large early payments (80/20): a big share of your capital is committed until handover, so keep a cash buffer
- Post-handover plans: check the developer's track record and that payments go to the project escrow account
- Missed payments: read the sale agreement clauses on late or missed instalments carefully
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Reviewed by Ahmed Benjas, co-founder & CEO of Cevitas Real Estate
Moroccan real estate expert based in Dubai, co-founder & CEO of Cevitas Real Estate, a RERA-licensed brokerage (NGI House, Deira), with an AED 200M+ track record. He works in French, Arabic, Darija and English.
Who is Ahmed Benjas? · Moroccan real estate broker in Dubai · His guides on cevitas.ae
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Calculators for this guide: Dubai property ROI calculator · Off-plan calculator Dubai