Buying property in Dubai is an exciting step. The city is full of modern buildings, growing neighborhoods, and investment opportunities. One option that’s getting a lot of attention lately is off-plan property, homes that are still under construction. These properties often come at a lower price and offer flexible payment plans.
But how do you actually pay for an off-plan home? Whether you’re planning to move in or invest, this article will break down your financing options in simple terms. Let’s make it easy to understand, smart to follow, and real enough to act on.
What Does “Off-Plan” Mean?
Before we jump into financing, let’s get clear on what off-plan means. An off-plan property is one that’s sold before it’s finished, sometimes even before construction starts. You agree to buy the property now, and you pay over time while it’s being built.
The good part? You usually pay less than for a finished home. You also get more time to plan your payments.
Option 1: Developer Payment Plans
The most common way people finance off-plan homes in Dubai is through developer payment plans. These are payment schedules offered directly by the company building the project.
Here’s how a typical plan works:
- 10% to 20% at booking
- 60% to 70% during construction, paid in chunks
- 10% to 30% on handover, when the home is ready
You don’t need to go through a bank. No mortgage, no interest, and fewer documents.
Why People Like This
- You don’t need a UAE credit history
- No need to prove your salary to a bank
- Easier entry into the market
- Payments are spread out over time
Quick Tip:
Make sure the payment dates are tied to construction milestones, not just the calendar. That way, you’re paying only when real progress is made.
Option 2: Getting a Mortgage
Many people don’t know this, but you can get a mortgage for an off-plan property in Dubai. You just can’t get it right at the beginning.
Most banks will wait until the project is about halfway done, usually around 50% to 60% complete, before giving out a loan. If you’re eligible, the bank will pay the rest of the cost, and you’ll start repaying them in monthly installments.
What You’ll Need:
- Passport and visa copy
- Proof of income including salary slips, job letter
- Bank statements
- Down payment
- Sometimes a UAE bank account
How Much Can You Borrow?
- Up to 80% of the property’s value if you live in the UAE
- 60% to 70% if you live overseas
- Loan terms can be up to 25 years
- Interest rates usually range from 3.9% to 5.5%
When This Works Best:
- You plan to live in the property
- You want to reduce big payments upfront
- You prefer spreading costs over the long term
Just remember: You’ll still need to pay the first few installments yourself. The mortgage usually helps later on, closer to handover.
Option 3: Paying All in Cash
If you’ve got the full amount ready, paying in cash can work well. Developers often give discounts for lump sum payments or for buyers who can pay in fewer installments.
What’s Great About Cash Payments:
- You may get a better price
- No need for loans or bank approval
- Simple and quick process
But this isn’t for everyone. Paying a big amount all at once can be risky, especially if you want to keep your money flexible for other things, like starting a business or buying more properties.
Option 4: The Smart Combo
Here’s a clever strategy many buyers are using: Start with a payment plan, then get a mortgage later.
For example, you could:
- Pay 20% now,
- Pay 50% during construction, and
- Use a mortgage for the final 30% when the home is ready.
This is called a hybrid strategy, and it gives you the best of both worlds:
- Lower upfront payments
- Flexibility during construction
- A loan is only when you really need it
Just Be Careful:
Make sure the project is approved for mortgages before you sign. Not all buildings qualify for loans, and you don’t want to get stuck.
Extra Costs You Should Know About
Buying a home involves more than just the property price. Here are other costs to expect:
- 4% Dubai Land Department (DLD) fee
- 2% to 3% agency and admin fees
- AED 1,000 to AED 3,000 for off-plan registration (Oqood)
- Annual service charges once the home is finished
- Mortgage setup fees, if you get a loan
Pro Tip:
Set aside 6% to 8% of the property value to cover all these extras. That way, you won’t be caught off guard.
Trust the Right Developer
Even if your financing plan is solid, none of it matters if the developer doesn’t deliver what they promised. Late handovers or poor-quality buildings can cause real stress.
Choose a developer known for:
- Delivering on time
- High build quality
- Transparent payment schedules
- Good communication
What’s the Best Option for You?
There’s no one-size-fits-all answer. The best financing plan depends on:
- Your budget
- Your long-term plans
- How comfortable you are with loans
- Whether you live in the UAE or overseas
Here’s a quick way to choose:
Situation | Best Option |
Low savings, want to start now | Developer Payment Plan |
Want to live in the home long-term | Mortgage |
High liquidity, want discounts | Cash Purchase |
Want flexibility and balance | Hybrid Strategy |
Planning to Finance Off-Plan property in Dubai? Contact ALDAR Aljadeed Real Estate
Looking to buy an off-plan property in Dubai but unsure how to finance it? Let ALDAR Aljadeed Real Estate guide you. Whether you’re an expat, first-time buyer, or seasoned investor, we offer expert advice and access to the best developer payment plans and mortgage options. From flexible installments to bank-approved projects, we help simplify the process and match you with financing that suits your goals and budget. Our team ensures transparency, trust, and tailored support every step of the way.
Contact us and take the first confident step toward owning your dream home or investment property in Dubai. Your property journey starts here!
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