Buying an off-plan property in Dubai can be an exciting opportunity for many. But remember there is more to look at along with the property and its price. As a buyer, you also need to understand the payment plan that fits your lifestyle and financial goals.
While exploring properties in Dubai, you might have surely come across terms like 60/40, 70/30, and 80/20 payment plans. At first, they may look confusing, but the idea is actually quite simple. These numbers tell you what percentage of the property price you will pay at different stages of the purchase.
At Sunrise Capital Dubai, we get asked about payment plans almost every single day. And honestly, it’s one of the most important conversations to have before you sign any agreement. The right plan can make your homeownership comfortable and stress-free. But the wrong one can impact your overall ownership experience and also affect your finances.
As an award-winning real estate developer in Dubai, we believe purchasing a home should be clear and aligned with your lifestyle or investment goals.
In today’s post, we will break down these payment plans in simple terms so that you can make decisions confidently. Let us begin.
What Is a Dubai Property Payment Plan?
A payment plan is simply a schedule that clearly explains when you need to pay for your property. Instead of paying the entire price at once, you pay the overall property price in multiple installments.
You can pay a certain percentage of the amount while booking, and the remaining amount can be paid during the handover. Some developers may also allow a portion to be paid after handover.
Types of Payment Plans for Buying a Property in Dubai
Dubai’s real estate market has attracted investors all around the world. However, not every buyer or investor might prefer to make a complete payment upfront. That’s why Dubai has introduced several payment plans to reduce the burden.
These plans work well for both the property developer and the buyer. However, it is crucial to understand which payment plan will work well for you, along with the terms and conditions. Here are some property payment plans that can help you make the decision based on finances.
60/40 Payment Plan: A Balanced Approach
A 60/40 payment plan typically means you only pay 60% when the project is under construction and the remaining 40% during the property handover.
For example, if a property is priced at AED 1 million, then:
- 60% is paid during the construction phase = AED 600,000
- 40% is paid at the handover phase = AED 400,000
60/40 Plan is Suitable For?
A 60/40 payment plan works well if you:
- Have a steady income: You can comfortably manage the payments during the construction period.
- Plan to live in the property: If you are buying a home for yourself, then this plan gives you time to plan your finances before handover.
- Buy as an investor: You can pay part of the property price during the construction phase while keeping the remaining amount for later.
- Plan to take a mortgage: If you are considering a mortgage for the final payment, this plan can give you some time to arrange your financing, subject to the lender’s approval.
70/30 Payment Plan: More Paid Before Handover
With the 70/30 plan, 70% of the property price is paid during construction, and the remaining 30% is paid during handover. Compared to the 60/40 plan, you need to pay a higher initial amount before getting the keys.
For example, if you are purchasing a property worth AED 2 million, then you need to pay AED 1.4 million during booking and construction, and the remaining AED 600,000 has to be paid during handover.
Why Buyers Choose 70/30
A 70/30 payment plan can be attractive if you want:
- Smaller final payment: You pay 70% during construction, and only 30% needs to be paid during the property handover.
- Less pressure at handover: Since most of the property price is already paid, the final payment is easier to manage.
- Better payment visibility: Since a larger portion is paid through the construction phase, you can plan your finances wisely.
- Better financial planning: A clear payment schedule helps you plan better and avoid last-minute financial pressure.
80/20 Payment Plan: Lower Handover Pressure
In an 80/20 payment plan, the buyer pays 80% of the property price initially, and the remaining 20% is paid at handover.
For example, if you are planning to purchase an AED 1 million home, then you need to pay:
- 80% during construction = AED 800,000
- 20% at handover = AED 200,000
This payment plan is often preferred by purchasers who have readily available funds, long-term investors, and people who want to keep the final payment minimal.
Post-Handover Payment Plans: Pay After You Get the Keys
The post-handover payment plan works in a different manner. As the term suggests, the owner needs to make the payment after receiving the property. Here, the buyer needs to pay the remaining balance amount when the construction is completed.
The best part owners can continue to pay the balance amount in installments after receiving the keys.
For example, you and a developer can structure the plan in a manner where one portion of payment is made while purchasing the construction, another portion at handover, and the balance amount is paid over a specified period after handover.
But these payment plans are mainly available for off-plan projects in Dubai. Initially, the post-handover payment options were available only for bigger projects in 2023. Later, many private developer firms, including several award-winning real estate developers in Dubai, also joined the program due to its popularity.
Additionally, Dubai’s payment schedule lasts for three, five, or even ten years. However, the time span of the post-handover payment is determined by the project plan and developer; hence, buyers need to understand the payment dates, duration, and conditions carefully.
At Sunrise Capital Dubai, we understand that buying a property is a long-term commitment. The right payment plan should fit your budget and should not put unnecessary pressure on your finances in the future.
60/40 vs 70/30 vs 80/20 vs Post-Handover
Below is a comparison table that will help you choose the right plan that fits your financial plans comfortably.
Payment Plan | Construction Phase | Handover Phase | Post-Handover Phase | Best Suited For |
60/40 | 60% | 40% | 0% | Mortgage seekers and balanced investors |
70/30 | 70% | 30% | 0% | Rental yield-focused buyers |
80/20 | 80% | 20% | 0% | Cash buyers seeking minimal handover burden |
Post-Handover | 50% – 60% | 10% – 20% | 20% – 40% (Over 1–5 Years) | Smart investors and end-users for maximizing cash flow |
Note: The actual payment schedule, instalment dates, construction milestones, and post-handover conditions depend on the specific project and SPA.
Which Payment Plan Is Actually Right for You?
Honestly, there is no one single best payment plan. The right payment plan depends on your budget, financial comfort, and property goals. That’s why always ask yourself a few practical questions before deciding:
Are you buying the property to live in or as an investment?
If the property is your next future home, then a balanced payment plan such as 60/40 often makes sense and makes payments easier to manage over time. On the other hand, if you are an investor and investing the property for rental returns, then a post-handover plan can be worth considering.
How comfortable is your cash flow?
If you have enough savings and can pay more upfront, then a 70/30 or 80/20 plan suits you. But if you want to spread the payments evenly for a longer period, then 60/40 is the suitable plan for you.
Are you planning to take a mortgage?
This is an important question to think about. Banks in Dubai may not fully finance properties that are still under construction, so it’s important to plan. Thus, understand your mortgage options well, check when the major payments are due, and make sure you have a clear plan for covering them.
How reliable is the developer?
A payment plan in Dubai may look attractive and fit your budget, but it’s equally important to look at the developer’s track record. Take some time to look at the developer’s previous projects, delivery record, construction quality, and reputation before making your decision.
That’s why many buyers prefer to explore award-winning real estate developers in Dubai. After all, a great payment plan works well only when the project is delivered on time and meets your expectations.
Finding answers to these questions can help you to find the right payment plan that actually works for your budget and goals.
Summing Up
Dubai’s real estate market is dynamic, and buying a property here is a big decision. Its property market offers plenty of opportunities, but choosing the right payment plan is just as important as choosing the right property.
While 60/40, 70/30, 80/20, and post-handover plans all have their advantages, the best option depends on your own financial situation. Moreover, it should make ownership feel achievable, comfortable, and aligned with your lifestyle.
At Sunrise Capital Dubai, we understand that every buyer’s journey is different. As an award-winning real estate developer in Dubai, we are committed to turning your real estate ambitions into reality.
After all, a property investment should fit comfortably into your financial plans and not work against them.
Contact our sales team today to find the perfect payment plan for your next Dubai property investment.
FAQs
Not necessarily. A flexible payment plan can make a purchase easier to manage, but it should not be the only deciding factor. Consider the location, property type, developer, expected completion, additional costs, and your long-term financial goals before making your decision.
It may be possible, depending on your eligibility, the property, and the lender’s terms at the time. However, buyers should not assume that future financing is guaranteed. Hence, it is always better to plan for the handover payment well in advance.
This depends entirely on the developer and the terms of your Sales and Purchase Agreement (SPA). Some award-winning real estate developers in Dubai may offer limited flexibility, while others may not allow changes once the agreement has been signed. Therefore, always clarify this point before booking the property.