Breakdown
How it works
Developers split the price into a booking deposit (5–20%), construction-linked instalments (often 40–60% over 2–3 years), a handover payment and increasingly a post-handover plan of 1–5 years. The 4% DLD fee is usually due at booking. Payments go into a RERA escrow account released by construction milestone.
Formula
Worked example
AED 1.5m on 10/50/10/30 over 30 months construction and 24 months post-handover: booking AED 150,000 + AED 60,000 DLD; AED 25,000 a month during construction; AED 150,000 at handover; AED 18,750 a month after.
Frequently asked questions
Can I get a mortgage on off-plan?
Up to 50% LTV from a few banks, usually only once construction passes 50%. Most buyers pay the developer plan from cash until handover and then mortgage the balance.
What if I miss a payment?
Developers can charge penalties and, after notice, cancel the contract under Law 19/2017, retaining up to 40% of the price depending on completion stage.
Is post-handover interest-free?
Usually yes — the developer prices it into the headline price, which is why off-plan can cost 10–20% more than ready stock.