New Dubai launches are sold off-plan, before the building is finished, and they usually come with a payment plan. For UK buyers that is a big part of the appeal: you pay in stages over the build rather than finding the full price on day one. It also brings questions a London buyer rarely faces, such as where the money is held, what happens if the developer is late, what happens if you miss an instalment, and how sterling moves against the dirham between your first and last payment.
This guide explains how off-plan payment plans work, using Dubai's own laws and Dubai Land Department (DLD) rules as the main sources. It is general information, not legal or financial advice, so have a UAE lawyer read your contract and speak to a UK adviser about tax.
Our Chief Sales Officer, Nikhil Wadhwa, has lived in the UK and works with UK-based buyers on Dubai property, so this guide is written around the questions British buyers ask us most.
Currency used in this guide: GBP 1 = AED 4.95, the mid-market rate on 5 November 2026, checked across two currency data feeds and the European Central Bank's GBP/USD reference rate through the dirham's fixed peg to the US dollar (AED 3.6725). AED 1 million is about GBP 202,000. Sterling floats against the dirham, so your rate on each payment date will differ.
Credit: Jpbowen, via Wikimedia Commons, CC BY-SA 4.0
The Short Answer
| What is a payment plan? | A schedule in your sale contract that splits the price into a booking payment, instalments during construction and a final payment at handover (sometimes with instalments after handover) |
|---|---|
| Where does my money go? | Into an escrow account opened for that one project with a DLD-approved escrow agent, under Dubai Law No. 8 of 2007 |
| Is the sale registered? | Yes. The developer must register the sale on DLD's interim (Oqood) register within 90 days of signing; an unregistered off-plan sale is void |
| Main government fee | DLD registration fee of 4% of the price (listed as 2% buyer, 2% seller, plus AED 20 in small fees); your contract sets who actually pays |
| If I stop paying | DLD gives you 30 days' notice; after that, depending on how far the building has progressed, the developer can keep up to 40% of the price or pursue the balance |
| Biggest UK-specific risk | Currency: each instalment is due in dirhams, and the pound can move between booking and handover |
How an Off-Plan Payment Plan Works
A payment plan is written into the sale and purchase agreement (SPA) you sign with the developer. Plans are usually described by two numbers: the share you pay before handover and the share you pay at or after handover. A 20/80 plan, for example, means 20% while the building goes up and 80% when it is finished. Our explainer on a Sobha 20/80 payment plan shows a real one in detail.
Instalments are usually linked either to dates (for example, a set number of months after booking) or to construction milestones (for example, when the building reaches 40% completion). Milestone-linked payments mean you are paying for progress that has actually happened, so read which type your plan uses.
The common shapes are:
- Front-loaded plans, where most of the price is paid during construction and a smaller balance at handover.
- Handover-heavy plans such as 20/80, where you pay little during construction and most of the price on completion, often with a mortgage.
- Post-handover plans, where part of the price is spread over months or years after you get the keys. Here you are owing the developer money after you own the home, so read the terms on late payment carefully.
Plans, discounts and booking amounts change from launch to launch and even week to week. Our monthly round-up of Dubai off-plan launches lists current examples.
What a Plan Looks Like in Pounds
This is an illustration, not a real offer: a AED 1,500,000 apartment (about GBP 303,000) on three typical plan shapes.
| Plan | Stage | Share | Amount |
|---|---|---|---|
| 20/80 | Booking | 20% | AED 300,000 (GBP 60,600) |
| At handover | 80% | AED 1,200,000 (GBP 242,400) | |
| 60/40 | Booking | 10% | AED 150,000 (GBP 30,300) |
| Instalments during construction | 50% | AED 750,000 (GBP 151,500) | |
| At handover | 40% | AED 600,000 (GBP 121,200) | |
| Post-handover (example 50/50) | Booking | 10% | AED 150,000 (GBP 30,300) |
| Instalments during construction | 40% | AED 600,000 (GBP 121,200) | |
| After handover, in instalments | 50% | AED 750,000 (GBP 151,500) |
Example figures only. GBP at GBP 1 = AED 4.95 (5 November 2026), rounded to the nearest GBP 100.
On top of the price, budget for the DLD fee of 4%, which on this example is AED 60,000 (about GBP 12,100), plus AED 20 in knowledge and innovation fees. DLD charges it when the sale is registered on the interim register, so it is usually due early in the plan. Check in your SPA when you pay it and whether the developer is covering any of it as part of a launch offer.
How Your Money Is Protected
Dubai's off-plan rules were written so buyers' money goes into the building, not into the developer's general accounts.
| Protection | What it means for you | Source |
|---|---|---|
| Project escrow account | A developer selling off-plan must open an escrow account for the project with an escrow agent approved by DLD, and buyers' payments go into it | Law No. 8 of 2007, Articles 6 and 7 |
| Money ring-fenced for construction | Escrow money is dedicated to building that project, each project has its own account, and the developer's creditors cannot attach it | Law No. 8 of 2007, Article 9 |
| 5% held back after completion | The escrow agent keeps 5% for a year after completion as a guarantee for defects | Law No. 8 of 2007, Article 14; DLD FAQ |
| Registration on the interim register (Oqood) | The developer registers your sale with DLD within 90 days of signing, and DLD emails you the registration | DLD initial sale registration service; Law No. 13 of 2008 |
| Escrow accounts monitored | The Real Estate Regulatory Agency (RERA), DLD's regulator, audits and monitors project escrow accounts | DLD investor guide "Know Your Rights" |
The practical rule is simple: pay only into the project's escrow account, never into a personal account or a different company account, however the request is worded. If a payment request ever changes bank details by email, call the developer on a number you already have before you send anything.
Checks to Make Before You Sign
DLD's own investor guide lists the questions to ask before signing an off-plan SPA. In plain terms:
- Is the project registered with RERA?
- Does it have an escrow account, and what are the account number and the escrow agent's name?
- How far has construction progressed, and what is the expected completion date?
- Is the developer registered with RERA, and does it own the land or have a development agreement with the owner?
- Does the developer have DLD and RERA approval to sell this project off-plan?
Also read the SPA for the handover date and any grace period, what happens if handover is late, the service-charge estimate, whether you can resell before completion and on what terms, and every payment date or milestone. A UAE lawyer can review it for you, including remotely if you are signing from the UK.
If You Miss a Payment
This is the part UK buyers most often skip, and it matters more with large handover payments. Under Law No. 13 of 2008, as amended by Law No. 19 of 2017, the developer must report a default to DLD. DLD then gives the buyer 30 days' notice to pay and may try to mediate a settlement. If nothing is resolved, DLD confirms the building's percentage of completion, and the developer can act without going to court:
| Construction progress | What the developer may do |
|---|---|
| Above 80% | Keep the contract, keep what you have paid and claim the balance; or ask DLD to sell the unit at public auction; or terminate, keep up to 40% of the price and refund the rest |
| 60% to 80% | Terminate, keep up to 40% of the price and refund the rest |
| Below 60% | The law sets separate, lower limits; ask your lawyer to explain them for your contract |
Source: Dubai Law No. 19 of 2017 amending Law No. 13 of 2008, Article 11 (Dubai Legislation Portal). Refunds are due within one year of termination or within 60 days of the unit being resold, whichever is earlier.
So before you commit, make sure you can fund the handover payment in full, either from savings or with a mortgage you have checked you can get. UAE banks lend to non-residents, but terms differ by bank and some only lend on completed homes. Our article on Mashreq's off-plan home financing at Expo City Dubai shows one example.
The UK Side: Currency, Transfers and Tax
Currency. Unlike buyers paid in US dollars, you carry exchange-rate risk on every instalment, because the pound floats against the dirham. A plan with payments spread over several years means several conversions at different rates. Some buyers fix part of the cost with a forward contract from a currency provider; others convert gradually. Either way, build a margin into your sterling budget.
Transfers. Use your bank or a money transfer firm authorised by the Financial Conduct Authority (FCA), and check it on the FCA's Financial Services Register before you send anything. Send to the project escrow account named in your SPA, and keep every receipt from the developer.
Tax. Buying off-plan does not change how UK tax treats the property once it earns rent. Our guide to UK tax on Dubai rental income covers the basics, and a UK tax adviser can tell you how it applies to you. For the full purchase process from start to finish, see our step-by-step guide for UK buyers.
Credit: SHARON VISHAKHAM, via Wikimedia Commons, CC BY-SA 4.0
Market Data: Areas With Busy Off-Plan Pipelines
These are Dubai Land Department transaction figures for apartments in five areas with active off-plan launches, over the latest 12-month window. Prices and rents are medians, and the change shown is the year-on-year move in price per square foot.
| Area | Median apartment price | Median price per sq ft (change) | Apartment sales (12 months) | Median annual rent | Gross rental yield |
|---|---|---|---|---|---|
| Jumeirah Village Circle (JVC) | AED 1,000,000 (GBP 202,000) | AED 1,470 (GBP 297) up 2.6% | 11,013 | AED 65,000 (GBP 13,100) | 8% |
| Dubai South | AED 892,000 (GBP 180,200) | AED 1,670 (GBP 337) down 24.6% | 15,013 | AED 63,000 (GBP 12,700) | 8% |
| Business Bay | AED 2,000,000 (GBP 404,000) | AED 2,430 (GBP 491) up 25.5% | 5,949 | AED 93,000 (GBP 18,800) | 7% |
| Dubai Hills Estate | AED 2,150,000 (GBP 434,300) | AED 2,340 (GBP 473) up 8.6% | 1,608 | AED 114,000 (GBP 23,000) | 7% |
| Dubai Creek Harbour | AED 2,650,000 (GBP 535,400) | AED 2,560 (GBP 517) up 5.4% | 3,903 | AED 130,000 (GBP 26,300) | 7% |
Source: DXBinteract (Dubai Land Department transaction data), as of November 2026. GBP at GBP 1 = AED 4.95 (5 November 2026). Gross yields are before service charges, vacancy and other costs.
JVC and Dubai South are the lowest-priced and highest-yielding of the five, and Dubai South had the most apartment sales. Business Bay saw the sharpest rise in price per square foot, while Dubai South's fell. For rents by unit size, see our breakdown of Dubai rental yields by bedroom type.
How Luxwell Helps UK Buyers
We compare live payment plans across developers, check the project's RERA and escrow details, and work through the sterling numbers with you before you book. If you are weighing up which agency to use, our piece on choosing an off-plan agent in Dubai sets out what to look for. Get in touch with Luxwell Real Estate in Business Bay to talk through current launches and plans.
Frequently Asked Questions
What is an off-plan payment plan in Dubai?
- It is the schedule in your sale contract that splits the price into a booking payment, instalments during construction and a final payment at handover, and sometimes instalments after handover. A 20/80 plan means 20% before completion and 80% on completion.
Is my money safe when I pay a Dubai developer off-plan?
- Dubai Law No. 8 of 2007 requires off-plan payments to go into an escrow account opened for that project with a DLD-approved escrow agent. The money is dedicated to building that project and the developer's creditors cannot attach it. Pay only into the escrow account named in your contract.
What fees do UK buyers pay on an off-plan purchase in Dubai?
- The main government fee is the DLD registration fee of 4% of the price, listed as 2% for the buyer and 2% for the seller, plus AED 20 in small fees. On a AED 1,500,000 apartment the 4% is AED 60,000, about GBP 12,100 at GBP 1 = AED 4.95 (5 November 2026). Your contract decides who pays it.
What happens if I miss an off-plan payment in Dubai?
- The developer must notify DLD, which gives you 30 days' notice to pay. If the default continues and the building is more than 80% complete, the developer can keep what you have paid and claim the balance, ask DLD to auction the unit, or terminate and keep up to 40% of the price. Between 60% and 80% complete, it can terminate and keep up to 40%.
What is Oqood?
- Oqood is DLD's interim register for off-plan sales. The developer must register your sale on it within 90 days of signing the contract, and DLD emails the registration to the buyer. An off-plan sale that is not registered is void.
Does the exchange rate matter for UK buyers on a payment plan?
- Yes. Each instalment is due in dirhams and the pound floats against the dirham, so the sterling cost of each payment changes with the rate. On 5 November 2026, GBP 1 was about AED 4.95, so AED 1 million was about GBP 202,000.
Can I get a mortgage for the handover payment?
- UAE banks do lend to non-resident buyers, but terms differ by bank and some lend only on completed homes. Check you can get finance for the handover payment before you commit to a handover-heavy plan.
Related reading
- Ultimate Guide to Buying Property in Dubai: UK Buyers' Step-by-Step Guide
- UK Tax on Dubai Rental Income: A 2026 Guide for UK Landlords
- Sobha 20/80 Payment Plan, 7–16 October 2026: Sobha Central, Hartland II, Solis and Orbis
- Mashreq Partners With Expo City Dubai on Off-Plan Home Financing: What It Means for Buyers
- Dubai Off-Plan Launches October 2026: Every New Launch in Dubai This Month
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