Key takeaways
- A split like 40/60 usually means 40% paid before handover and 60% on handover; always check the rows, not just the name.
- Post-handover plans move part of the price to after the keys, which lowers the cash needed upfront and raises the monthly commitment later.
- Monthly plans do not stop at handover by themselves: count the months against the handover date to see the real split.
- Compare plans on cash needed by the keys and cash owed after, on the same price, not on the headline split.
- The 4% transfer fee and the admin fees come on top of every plan, usually at booking.
What the numbers in a payment plan mean
Off-plan property in Dubai and the rest of the UAE is sold before it is finished, and the price is paid in stages while it is built. The developer sets those stages in a payment plan. The plan is usually named by a split, such as 40/60 or 60/40, and the split is a summary of the rows underneath it.
In the most common reading, the first number is the share paid before handover (the booking payment plus the instalments during construction) and the second is the share paid on handover, when the keys are released. So on a 40/60 plan, 40% of the price goes in while the building goes up and 60% is due at completion. Some developers name plans the other way round, or count the booking payment separately, so read the rows on the sales offer every time.
The four stages every plan is made of
- Booking, or down payment: the first payment when the unit is reserved, often 10% to 20% of the price, with the transfer fee and admin fees.
- During construction: instalments tied to dates or to the building's progress, such as 10% when the structure reaches a certain stage.
- On handover: the payment due when the unit is complete and the keys are handed over. On many plans this is the largest single payment.
- After handover: on a post-handover plan, the rest is paid in instalments after the keys, often monthly or quarterly over one to five years.
The common splits, and who they suit
| Plan | What it means | Often suits |
|---|---|---|
| 80/20 | Most of the price is paid during construction, little on handover | Cash buyers who want the lowest handover payment |
| 70/30 and 60/40 | More paid before the keys than after | Buyers with savings now and no mortgage planned |
| 50/50 | Half before handover, half on handover | Buyers who want balance, or who will mortgage the handover half |
| 40/60 and 30/70 | Less before the keys, a large payment on handover | Investors keeping cash free, or planning to finance the handover payment |
| Post-handover | Part of the price is paid after the keys, in instalments | Investors who want the rent to help pay the rest, and buyers short of cash now |
A plan with a large handover payment is often paired with a mortgage: the bank lends against the finished unit and that loan covers the handover payment. A post-handover plan does a similar job without a bank, at the cost of a fixed monthly commitment to the developer after the keys.
Monthly plans, and why the split moves with the handover date
Some launches sell on a monthly plan: for example a 20% down payment, then 1% of the price every month for 80 months. The name tells you nothing about how much is paid before the keys. That depends on when handover is.
Count the months. If handover is expected 36 months after booking, the first 36 monthly payments (36%) are made before the keys, together with the 20% down payment, so 56% is paid before handover. The other 44 payments (44%) come after. If handover slips to month 42, the split moves to 62% before and 38% after. A buyer who thought they had bought a post-handover plan with most of the price after the keys may find most of it paid before.
The same applies to rows written as a month number, such as 10% in the 40th month. Whether that payment falls before or after the keys depends on the expected handover date, not on where the row sits in the plan.
How to compare payment plans fairly
Buyers compare plans by their names, which hides what matters. Put every plan on the same price and ask three questions: how much cash goes in before the keys, how much is due on handover, and how much is still owed after. Then add the fees, which are the same whatever the plan.
| Plan (example) | Before the keys | On handover | After the keys |
|---|---|---|---|
| 40/60 | AED 800,000 | AED 1,200,000 | None |
| 50/50 | AED 1,000,000 | AED 1,000,000 | None |
| 60/40 | AED 1,200,000 | AED 800,000 | None |
| 30/20/50 post-handover | AED 600,000 | AED 400,000 | AED 1,000,000 over 3 years |
| 20% down, 1% a month for 80 months | AED 1,120,000 | None | AED 880,000 over 44 months |
Read this way, the post-handover plan asks for the least cash before the keys and the monthly plan asks for more than its name suggests. Neither is better in general. Which one suits depends on the buyer's cash today, whether they will mortgage, and whether the rent will cover what is owed after handover.
Check the after-handover payments against the rent
On a post-handover plan, divide what is owed after the keys by the years it is spread over, and compare it with the rent the unit will earn after the service charge. If the instalments are larger, the buyer tops up the difference every month. In the example above, AED 1,000,000 over three years is about AED 333,000 a year; a unit earning much less than that in net rent leaves a real monthly gap. Our guide to writing an off-plan feasibility report shows how to set this out for an investor.
Count the fees once, at the start
The land department's 4% transfer fee and the developer's admin fees are usually paid at or soon after booking, whatever the plan. They belong in the cash needed at the start, not spread across the instalments. Some launches run offers that cover part of the fee; if one applies, show it as its own line so the client can see what the offer is worth.
Mortgages and off-plan
Most buyers who finance an off-plan unit do it at handover, when the bank can lend against a finished property. Banks set limits on how much they lend, which depend on the buyer's residency and the property's price, so the buyer should take the figures from their own bank. A few developers arrange finance during construction too; where they do, say so on the listing, because it changes which plan suits the buyer.
A plan with a large handover payment works well for a buyer planning to mortgage, because the loan arrives when the payment is due. A buyer who will not mortgage needs that payment in cash at completion, which is the most common reason a buyer who chose the lowest upfront plan struggles later.
Mistakes that cost buyers money
- Choosing a plan by its name without reading the rows.
- Forgetting that a monthly plan's split moves if handover is late.
- Leaving the transfer fee and admin fees out of the cash needed at booking.
- Picking a plan with a large handover payment without a plan for paying it.
- Taking a post-handover plan whose instalments the rent will not cover, without saying so.
How Key Deal shows payment plans
In Key Deal a listing can carry up to four payment plans, post-handover plans included. On the listing page each plan is a tab, with a bar drawn in proportion to its instalments, so a 40/60 and a 70/30 look different before anyone reads a number. When you add a plan, the common splits are made in one press, and each plan says whether it adds up to 100%. See listing management for the rest of what a listing holds.
- Monthly plans are split at the listing's handover date, so a comparison shows what is really paid before and after the keys.
- The property comparison report puts two to four options side by side, with paid before handover, on handover and after handover as their own rows.
- The property feasibility report prints the payment schedule month by month on the unit's price, with the running total.
- Buyers and your team can filter listings by payment plan, including post-handover plans and the developers' running plan offers.
- Keep each project's unit prices current from the developer's list with off-plan inventory.
Questions
What does a 60/40 payment plan mean?
Usually it means 60% of the price is paid before handover (the booking payment and the instalments during construction) and 40% is paid on handover. Developers name plans differently, so check the rows on the sales offer to see exactly when each payment falls.
What is a post-handover payment plan?
A plan where part of the price is paid after the keys are handed over, in instalments spread over one to five years. It lowers the cash needed before completion, but the buyer commits to payments after handover, which the rent may or may not cover.
Is the 4% transfer fee included in the payment plan?
Usually not. The land department's 4% transfer fee and the developer's admin fees are paid on top of the plan, generally at or soon after booking. Some developers run offers that cover part or all of the fee for a period.
Can I get a mortgage on an off-plan property in the UAE?
Most buyers mortgage at handover, when the bank can lend against the finished unit. Some developers arrange finance during construction. Lending limits depend on the buyer's residency and the price, so the buyer should check with their own bank.
Why does my monthly payment plan show more paid before handover than I expected?
Because a monthly plan keeps running to its last month whatever the handover date. If handover comes before the monthly payments end, the payments made up to handover count as before the keys. A later handover date moves more of the plan before the keys.