You pay a deposit to reserve, often around 5%, then instalments spread over the build, usually interest-free over three to five years. A larger handover payment of 40% to 60% is due when the keys are released. Aldar and Modon now offer finance on that handover payment, so you do not need it all in cash.
A typical plan
| Stage | Share of price | When |
|---|---|---|
| Reservation and down payment | About 5% to 10% | On signing |
| Construction instalments | About 30% to 50% | Spread over the build |
| Handover payment | About 40% to 60% | At completion |
Illustrative only. Every project publishes its own schedule in the SPA.
Why the plan shape matters
The less you pay before handover, the less cash you tie up, and the higher your return on the cash you did put in if prices rise. That is why many investors sell before handover, or finance the handover payment and rent the property out.
Where the money goes
Off-plan payments in Abu Dhabi are paid into a regulated escrow account for the project. The developer draws on it as construction milestones are certified.
“There's typically a handover payment of between 40 and 60 percent when you get to the end, and now certainly in Abu Dhabi and Dubai there is options where this can be financed and mortgaged.”
General information, not financial advice. Figures attributed to Mitch come from transactions he tracks.