The single biggest difference between buying property in Dubai and buying in India, the UK or most other markets is the developer payment plan. Used well, it is the most investor-friendly financing structure in global real estate. Used carelessly, it hides real costs. Here is how to read one.
The basic structure
Instead of paying the full price (or taking a mortgage) upfront, off-plan buyers pay the developer in instalments: a down payment at booking (commonly 10–20%), staged payments during construction, and the balance at or after handover. No bank is involved during construction — the plan is between you and the developer, with your money protected in a RERA-regulated escrow account.
The headline formats you'll see
- 1% monthly plans — popularised by developers like Samana and Danube: a small down payment, then 1% of the price per month. On an AED 800K unit, that's AED 8,000/month — for many buyers, comparable to rent.
- Construction-linked plans — e.g. 60/40 or 50/50: percentages tied to build milestones, with the balance at handover.
- Post-handover plans — part of the price paid over 2–5 years after you receive the keys, often while the unit is already earning rent.
How professionals compare plans
- Total cash out before handover — not the monthly figure. Two "1% plans" can differ hugely in down payment and lump-sum milestones.
- Price premium vs a ready unit — flexible plans are sometimes priced above equivalent ready stock. Sometimes the premium is worth it; sometimes it isn't.
- Developer track record on delivery — a generous plan from a developer who delivers late is not generous.
- Exit rules — when you can resell (assignment), and what the developer charges for it.
Send us any project's payment plan on WhatsApp and we will send back a plain-language breakdown of your true cash flow, month by month — before you commit to anything.