Payment plans explained: what 50/50, 20/40/40 and post-handover really mean

Off-plan payment plans are one of the main reasons buyers choose new launches in the UAE. But two projects at the same price can need very different amounts of cash at very different times. Here’s how to read them.

How to read the numbers

A payment plan shows what percentage of the price you pay at each stage. The numbers always add up to 100%:

• 50/50: half paid during construction, half on completion (handover).
• 20/40/40: 20% on booking, 40% spread over construction, 40% on handover.
• Post-handover plans: part of the price is paid in instalments after you’ve received the keys, often over two to five years.

Remember that the Dubai Land Department registration fee (4% of the price in Dubai) is usually paid at booking, on top of your first instalment.

Two real examples

Bay Estate, Dubai Islands (Nakheel): 20/40/40. A modest amount at booking, with the largest share due during construction and at handover.

Talay, Saadiyat Island (Aldar): 50/50, with 5% down and the construction-period half spread across set dates before the final 50% at handover.

What it means for your cash flow

On a AED 6,000,000 villa with a 20/40/40 plan, you would budget around AED 1,200,000 at booking plus the registration fee, AED 2,400,000 spread through construction, and AED 2,400,000 at handover. That final payment can be made in cash or, for many buyers, with a mortgage arranged nearer the time.

Which plan is better?

It depends on what you want the property to do:

• Want to keep cash free? Look for a low deposit and a larger share later.
• Planning to use a mortgage? Plans weighted towards handover give you time to arrange finance.
• Thinking of selling before completion? Check how much you must have paid before the developer allows a resale, often 30–40%.

Lunaya by ZAYA & FIVE is a good example of one project offering different plans for different home types, so it’s always worth asking what applies to the unit you’re looking at.

This article is general information, not financial advice. Payment plans change and are set by each developer.