Off-plan payment plans: what 60/40 actually means.
Updated August 2026
An off-plan payment plan splits the price between construction and handover. The 2026 standard is 60/40: roughly 10% on booking, about 50% in staged instalments as the building goes up, and 40% on handover. On top of the price the buyer pays a one-off 4% DLD registration fee plus a small Oqood admin fee, due at registration — early in the plan, not at handover.
What do the two numbers mean?
The first number is the share paid during construction, the second the share paid at handover. In an 80/20 plan the buyer has paid 80% of the price by the time the keys exist; in a 60/40 plan, 60%.
Lower first number means less capital tied up while the building is unfinished. That is why 60/40 became the market standard — it moves risk and cash flow towards the developer, and it sells.
The structures you will actually be asked about
80/20 — heavier during construction, usually on projects close to completion. 60/40 — the current default on new launches. 50/50 — more buyer-friendly, common when a developer wants velocity.
1% monthly — marketing shorthand for a long instalment tail; the headline is the monthly figure, the substance is in the booking amount and the handover balance. Post-handover — a portion, often 40–60%, is deferred into interest-free instalments after the keys, typically across two to five years.
What is Oqood and when does the 4% get paid?
Oqood is the Dubai Land Department’s pre-registration system for off-plan units. Before a title deed can exist — the building is not finished, so there is nothing to deed — the sale is recorded against the unit through Oqood.
The 4% DLD registration fee, plus a small Oqood administration fee, is charged once at this stage. It is not charged again when Oqood converts to a title deed at handover. This is worth saying clearly on the first call, because buyers routinely assume a second 4% is waiting for them at the end.
The timing matters for the buyer’s cash planning: the 4% lands early, near booking, not at handover.
Post-handover plans — read the second half
The appeal is obvious: take the keys, rent the unit, and pay the balance from the income. It genuinely works when the numbers work.
What deserves attention is the second half of the schedule. The instalments continue whether or not the unit is tenanted, service charges start at handover regardless, and the unit cannot be freely resold until obligations are met. A buyer who has modelled only the monthly figure has modelled half the picture.
An agent who walks the client through the full schedule on the first call closes better than one who repeats the brochure.
What the buyer is really asking
Not “what is the plan”. They are asking three things underneath it: how much do I need today, how much until handover, and what happens if my situation changes.
The first two are arithmetic. The third is the contract — missed instalments trigger penalties and, past a threshold, the developer can terminate under the SPA and DLD rules. That conversation belongs at the start, not at the first missed payment.
Where agencies lose off-plan deals
Speed. A buyer comparing three projects will move with whoever answers first with a correct schedule in the buyer’s own currency — not whoever sends a PDF and follows up tomorrow.
That means the payment plan cannot live in a brochure folder. It has to be a structured schedule on the project record, so any agent can produce the numbers while the client is still on the phone. Our off-plan module stores each plan as milestones rather than a document, converts to the client’s currency, and keeps unit availability live so nobody quotes a unit that is already reserved.
Frequently asked
Is the 4% DLD fee charged twice on off-plan? +
No. It is paid once at Oqood registration. Converting Oqood to a title deed at handover does not trigger a second 4%.
What is the most common payment plan in 2026? +
60/40 on new launches — around 10% on booking, roughly 50% in construction-linked instalments, 40% on handover. Post-handover variants are increasingly used to compete.
Are post-handover instalments interest-free? +
They are normally presented as interest-free, since the developer is financing the sale rather than a bank. The cost is usually reflected in the headline price instead.
What happens if a buyer misses an instalment? +
The SPA sets out penalties and cure periods. Persistent default can lead to termination under the contract and the applicable DLD rules, with deductions from amounts already paid.
Can an off-plan unit be resold before handover? +
Often yes, subject to the developer’s conditions — typically a minimum percentage paid, a transfer fee and developer approval. Terms vary by developer and project.
Fees and procedures are reviewed periodically. Confirm current figures on the official channel before quoting them to a client. Sources: Dubai Land Department · Dubai REST — Dubai Land Department eServices