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payment-plans for off plan property

Off-Plan Payment Plans Explained….

Much like buying an existing property there a wide range of factors to take into consideration when buying an off-plan property. Which area do you buy in, which developer and which project are just a few to consider. One other very important consideration to take into account is the payment plan, and what exactly does it look like for the projects you are buying in?

Before we get into the details of different payment plans, lets first see what a payment plan is for an off-plan project:

“A payment plan is a schedule of payments set out by a developer for the sale of its properties within a particular project”

Types of Property Payment Plans?

The type of payment plans available out there can and do vary depending on the developer and the particular off plan project. Some of the more traditional and more popular payment plans tend to be 80%/20%. Such payment plans requires the buyer to pay 80% of the total property price before completion and 20% once the project is fully completed (at handover). There a two ways in which the  pre handover 80% can be paid. The most common is linked to construction where by payments are made in line with certain construction milestones (usually expressed a percentage of the project completion). The other commonly used payment method is based on fixed dates during the projects development period. (i.e. every 4 months until handover)

Lets look at an example of a payment plan for a newly released project by Emaar – The Cove.




Other types of off-plan payment plans available include 60/40, 50/50 and as we see here with The Cove, 70/30. Along with these more traditional payment plans we have seen an introduction of post handover payment plans which often have the following schedule 30/40/30. In a post hand over payment such in the example just given, 30% of total payment is paid during construction, 40% at handover and the remaining 30% two to three years after handover. Similar to the existing pre payment plans available, post payment plans do vary and are not offered by all developers.

The introduction of post handover payment plans and new more flexible pre payment plans has made buying off plan property easier and more accessible for new and existing buyers. With a host of new projects entering into the market, we envision more of Dubai’s Developers to join the trend, and offer even more flexible and consumer friendly payment plans.

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