Insights · AXD Real Estate Dubai
Off-Plan Payment Plan Dubai — DACH Tranches
How does the payment plan work for off-plan properties in Dubai?
Off-plan payment plans in Dubai usually follow 20/40/40 or 30/40/30: down payment at reservation, tranches during the construction phase according to construction progress, remaining payment at handover. Post-handover plans (e.g. 60 % during construction, 40 % over 2–5 years thereafter) are offered by Tier-1 developers. All payments run through the RERA escrow account under UAE Law 8/2007.
Common models
| Model | Construction phase | Handover | Post-handover |
|---|---|---|---|
| 20/40/40 | 20 % + 40 % | 40 % | — |
| 30/40/30 | 30 % + 40 % | 30 % | — |
| 60/40 Post-HO | 60 % over construction phase | — | 40 % over 2–5 years |
| 10/90 Post-HO (DAMAC) | 10 % Booking | 10–30 % | 60–80 % over several years |
Concrete terms vary per project and developer. Source: public disclosure documents Emaar / Sobha / DAMAC / Meraas.
Structuring of the tranches
Construction-phase tranches are tied to concrete construction milestones — e.g. "20 % at Foundations Complete", "10 % at 40 % Construction Complete". The project manager's testates for these milestones trigger both the buyer's payment and the escrow release of funds to the developer.
DLD Oqood fee
In addition to the purchase price payment, the DLD registration fee of 4 % of the purchase price applies — usually split 2 % buyer / 2 % developer. Registration takes place as Oqood (preliminary ownership registration), which is replaced by the final Title Deed after completion.
DACH investor checklist
- Verify escrow account number on the RERA project licence
- Tranche triggers (milestones) clearly defined in the Form 4 SPA
- Negotiate cure period (typically 30 days) and penalty interest cap
- Calculate EUR/AED exchange rate risk over the term
- Post-handover tranches only with Tier-1 developers with a clear resale strategy
Concrete application of the 20/30/50 logic with post-handover share in the AXD example project Celesto by Tarrad in Dubai Land Residence Complex. Boutique variant with 60/40 plan in the AXD example project JAD 288 by JAD Global near World Trade Centre Metro.
Sources
- UAE Law No. 8 of 2007 — Real Estate Development Escrow Accounts
- RERA Form 4 SPA — Sale and Purchase Agreement Standard
- Public Payment Plan Disclosures: Emaar, Sobha, DAMAC, Meraas
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