In Dubai’s off-plan property market, developers often offer flexible payment plans to attract buyers and facilitate the purchase process. These payment plans are designed to distribute the payment of the property purchase price over a specified period, allowing buyers to make installments instead of paying the full amount upfront. Here’s a general overview of how a payment plan typically works:
Reservation: Once you decide to purchase an off-plan property, you typically start by reserving the unit by paying a reservation fee. This fee secures the property for a certain period while you proceed with the purchase process.
Down payment: After the reservation, you will be required to make an initial down payment. The amount can vary depending on the developer and the specific project, but it is typically around 10-20% of the total property price. The down payment is usually paid within a specified timeframe, such as 30 days from the reservation date.
Installments: Following the down payment, the remaining balance is divided into installments. The number and frequency of installments can vary depending on the developer and the project. Commonly, these installments are spread over the construction period, with payments made at specific milestones or intervals. For example, you may have monthly, quarterly, or bi-annual installments.
Completion payment: Once the property construction is complete, the developer will request the final payment, also known as the completion payment. This payment is typically due upon handover of the property.