Off-Plan Payment Plans Decoded: 10/90, 60/40 & Post-Handover

Off-plan was 71% of Dubai's sales deals by count in the first half of 2026, and the reason is rarely the price — it is the terms. A developer selling on a staged plan is offering interest-free financing a bank will not match. Decoding the ratios is how you tell a genuinely light plan from a marketing one.

The escrow backstop

Every dirham you pay on an off-plan unit is legally required to go into a RERA-regulated escrow account under Dubai's Escrow Law, Law No. 8 of 2007. The developer draws from it against construction milestones, not on demand. Your purchase is recorded on an Oqood with the DLD. This is the structure that makes staged payment on an unbuilt asset defensible — your money is ring-fenced to your project.

Reading the ratios

A payment plan is written as two numbers: what you pay before handover / what you pay at or after handover.

• 10/90 — 10% during construction, 90% at handover. The lightest, rarest, and usually the most expensive per foot; the developer is financing you heavily.
• 20/80 and 40/60 — common construction-linked plans. More cash in during the build.
• 50/50 and 60/40 — front-loaded; more paid before you hold keys.
• 80/20 — most of the price during construction, a small balance at handover.

A lower first number is not automatically better — developers price the financing in. The real question is what the same unit costs on a heavier plan, or in cash.

During-construction plans

The bulk of plans are milestone-linked: 10% on booking, then instalments tied to completion stages — foundation, structure, MEP, handover. A few are time-linked, a fixed percentage every few months. Milestone plans protect you slightly: if the build stalls, the payment triggers stall with it.

Post-handover: the yield-investor's structure

The plan that changed the market is post-handover. A 40/60 post-handover plan might mean 40% during construction and the remaining 60% spread over two to three years after you take the keys — while the unit is rented. The rent services the instalments. For a yield investor, it converts a lump-sum purchase into something close to a self-funding position, which is why developers like Emaar, DAMAC and Sobha lean on it to move inventory.

The 1% monthly plan

Danube built a brand on the 1%-per-month structure: after a deposit, you pay 1% of the price each month. On a AED 1,000,000 unit that is AED 10,000 a month. It reads as accessible, and it is — but stretch the arithmetic. 1% monthly is a long tail of payments, and the headline price usually carries the cost of that patience.

The DLD 4% still applies

The staged plan covers the price. It does not cover the 4% DLD transfer fee, the Oqood registration, or agent commission — those are generally due up front, at booking, in cash. Some developers absorb the 4% as an incentive in a soft market; read whether yours does, because AED 60,000 on a AED 1.5M unit is not a rounding error.

Where the risk actually sits

• Completion risk — delivery slips. Escrow protects your capital; it does not compensate for a delayed handover or delayed rent.
• Exit before handover — reselling an off-plan unit, an assignment, needs developer consent and usually a minimum percentage paid, often 30 to 40%, plus an NOC fee. You cannot always flip on day one.
• Handover-gap financing — on a 50/50 plan, the 50% at handover may need a mortgage, and off-plan mortgages cap at 50% LTV. Confirm the exit finance before you sign the entry.

Match the plan to the exit

• Flipping before handover: a light front end — 10/90, 20/80 — minimises capital at risk.
• Holding and renting: a post-handover or 1% monthly plan lets income carry the balance.
• Paying cash at handover: a heavier construction plan often buys a lower price.

The plan is not a convenience bolted onto the price — it is part of the price. Model the total cash out, the timing, and the exit finance together, and a 60/40 can beat a 10/90 for the right buyer. Read the ratio, then read what it costs you.