Why Payment Plans Matter for International Investors
One of the reasons Dubai has become a global magnet for real estate investors is its flexible payment plans.
Unlike in most countries, buyers here can secure a property with a small initial payment and complete the purchase gradually — without requiring complex bank loans or local credit history.
This model has opened the door for thousands of international investors, including many from Latin America, to build wealth safely in one of the world’s most profitable and transparent real estate markets.
Initial Payments: Down Payment, DLD Fee and Admin Costs
Before we dive into the different payment structures, it’s important to understand the initial costs that apply to almost all property purchases in Dubai:
Down Payment (20%) —
Most developers require a 20% down payment upon signing the Sales and Purchase Agreement (SPA).
This confirms your booking and officially locks the unit under your name.DLD Fee (4%)) —
The Dubai Land Department (DLD) is the government authority responsible for registering and regulating all property transactions.
The 4% fee is a one-time government charge applied to every real estate purchase in Dubai. It legally registers your property and protects your ownership rights.Administrative Fees —
Depending on the developer, you may also pay a small admin fee (usually between AED 2,000 and AED 5,000) to cover paperwork, registration and issuance of your title deed.
Once these payments are made, your purchase is officially registered and you begin following the developer’s construction-linked payment plan.
How Dubai Payment Plans Work (40/60, 50/50, 60/40)
In most new developments, payment plans are structured around two main phases:
the construction period and the handover period (when you receive your keys).
Developers distribute the total property price between these two stages using ratios like 40/60, 50/50, or 60/40 — all meaning how much is paid before and after handover:
| Plan Type | During Construction | At/After Handover | Investor Profile |
|---|---|---|---|
| 40/60 | 40% | 60% | Ideal for investors seeking flexibility and liquidity before completion. |
| 50/50 | 50% | 50% | Balanced approach for buyers who want equal control before and after delivery. |
| 60/40 | 60% | 40% | Best for cash-ready investors who prefer early commitment and premium unit selection. |
Example:
For a property worth $300,000 USD, under a 50/50 plan you would pay $150,000 during construction and the remaining $150,000 after handover (often in 3–10 years of installments).
Meanwhile, with a 40/60 plan, your initial commitment would be smaller ($120,000) but your final payment larger.
Each structure has its own advantages, and developers sometimes customize them depending on the project stage or buyer’s profile.
Why Developers Offer These Flexible Plans
Dubai developers compete in a dynamic international market, so offering payment flexibility helps attract global buyers.
These structures are designed to:
Lower the entry barrier for investors abroad.
Ensure cash flow for the developer during construction.
Increase confidence and transparency through the RERA Escrow Account System, where all payments are safely held under government supervision.
How to Choose the Right Plan
When evaluating your options, consider:
Timeline: How long until completion and when you prefer to finalize payments.
Liquidity: Whether you can handle higher initial installments or prefer post-handover payments.
Investment strategy: For flipping, go lighter during construction (40/60); for long-term rental income, a balanced or 60/40 plan works best.
Developer reputation: Always choose RERA-approved, trusted developers
At RE/MAX Prestige Dubai, our team analyzes your investment goals and guides you toward the right combination of project, developer, and payment structure.
Final Thoughts
Understanding Dubai’s real estate payment system — from the initial 20% down payment and 4% DLD fee to flexible 40/60, 50/50, or 60/40 plans — is essential for making smart investment decisions.
These payment structures allow international buyers to invest confidently, protect their capital, and benefit from one of the most transparent and high-return property markets in the world.
At RE/MAX Prestige Dubai, we work hand in hand with our clients to ensure maximum comfort and flexibility — often negotiating directly with developers to adjust payment plans whenever possible, always prioritizing the convenience and financial peace of mind of each investor.
