Payment plans in the UAE: expert insights

In the Emirates, every new home comes with a zero-interest payment plan. Once you’ve made your first installment, you’ll receive an OQOOD – the document confirming your ownership rights to the off-plan property. From there, you follow a flexible schedule that can stretch from 3 to 8 years.

Here’s what our experts say you should know about payment plans:

No extra costs

The Payment Plan is the official name for the installment schedule. For example, a 50/50 plan might look like this: 10% reservation, 40% during construction, and the remaining 50% after completion.

Pay after handover

You can choose between handover or post-handover payment plans:

• Handover – you settle the final installment in one go at the project’s completion. If the plan is 60/40, the last 40% is due on handover.

• Post-handover – you get the keys first and keep paying off the balance in smaller installments over 12+ months.

Only for new builds

Payment plans are available only for off-plan properties. You won’t find them in the secondary market. Developers structure them exclusively for new launches.

How it differs from a mortgage

A payment plan comes directly from the developer, with no markup on the listed price. A mortgage, on the other hand, is a bank loan that comes with interest, adding to the overall cost.

Thinking about buying but not sure which new launch is right for you?