Off-Plan Payment Plans and Mortgages, Dubai and Abu Dhabi: 2026 Guide
How off-plan payment plans work, when banks will lend on an off-plan home, how Dubai and Abu Dhabi differ, and what to budget for beyond the price.
Off-Plan Payment Plans and Mortgages, Dubai and Abu Dhabi: 2026 Guide
Buying off-plan in the UAE means paying for a home in stages while it is built, instead of in one lump sum. It is one of the most accessible ways into the Dubai and Abu Dhabi markets. The rules on payment plans, mortgages and fees are different from buying a ready home, though, and they differ between the two emirates. This guide explains how it all works in 2026.
How off-plan payment plans work
A payment plan splits the price into instalments tied to dates or to construction progress. The developer sets the plan, and it is written into your Sales and Purchase Agreement (SPA). Plans are usually described as two numbers: the share you pay before handover, and the share you pay on or after handover.
- 60/40: 60% while the building goes up, 40% on handover. Common for mid-market apartments.
- 70/30: 70% during construction, 30% on handover. For example, Berkeley Tower by Ellington in Business Bay asks for 20% on booking, 50% during construction and 30% on handover.
- 50/50 or 80/20: a lower or higher share before handover, depending on the developer and how close the project is to completion.
- Post-handover plans: part of the price is paid in instalments for one to five years after you receive the keys. These suit buyers who plan to rent the home out and put the rent towards the instalments.
The first payment, usually 10% to 20%, is the down payment that reserves your unit. Later instalments are often tied to construction milestones, so you pay as the building rises.
A worked example
Take an AED 2,000,000 apartment on a 70/30 plan with 20% on booking:
- On booking: AED 400,000 (20%), plus the land department registration fee (see below)
- During construction: AED 1,000,000 (50%), spread over several instalments
- On handover: AED 600,000 (30%), paid in cash or with a mortgage
Can you get a mortgage on an off-plan property?
Yes, but usually not for the whole price, and usually not from day one.
In Dubai
Most buyers pay the construction instalments from their own funds and take a mortgage for the handover payment, once the property is complete and can be valued like any ready home. A growing number of banks also work with specific developers to finance homes during construction. When they do, they typically lend up to 50% of the value of an off-plan property.
In Abu Dhabi
Abu Dhabi opened off-plan mortgages in 2026. Under the Abu Dhabi Real Estate Centre (ADREC) framework, a mortgage can be recorded on the initial real estate register before the building is complete, so buyers can finance a home during construction. Aldar and ADCB completed the first off-plan mortgage under the framework in September 2026.
Some developers go further. Modon, working with ADIB, offers financing of up to 75% of the property value on its off-plan projects. Read more about Abu Dhabi's 75% off-plan financing. Not every developer and bank takes part yet, so check each project.
Central Bank lending limits
The UAE Central Bank caps how much a bank can lend against a home, known as the loan-to-value (LTV):
- Expats, first home under AED 5M: up to 80% (a 20% down payment)
- Expats, first home of AED 5M or more: typically 65% to 70%
- UAE nationals, first home under AED 5M: up to 80%
- Second homes and investment properties: typically 60% to 65%
Your monthly debt repayments, including the new mortgage, cannot exceed 50% of your income. Non-residents can usually borrow less, often 50% to 60%.
Dubai vs Abu Dhabi at a glance
- Regulator: Dubai Land Department (DLD) and RERA in Dubai; the Abu Dhabi Real Estate Centre (ADREC) in Abu Dhabi.
- Off-plan registration: Oqood in Dubai, at 4% of the price, usually paid by the buyer. In Abu Dhabi, the initial real estate register, at about 2% of the price.
- Where your money is held: a project escrow account in both emirates, governed by Law No. 8 of 2007 in Dubai and supervised by ADREC in Abu Dhabi.
- Mortgage during construction: with selected banks and developers in Dubai, and under the ADREC framework with participating banks in Abu Dhabi, including up to 75% with Modon.
In both emirates, payments go into an escrow account for the project, and the developer can only draw on it as construction progresses. This protects buyers if a project stalls.
Costs to budget for beyond the price
- Registration fee: 4% in Dubai and about 2% in Abu Dhabi, usually paid when you book. Some developers cover it as a promotion.
- Registration service charges: in Dubai, a trustee office fee of AED 4,000 plus VAT for homes of AED 500,000 or more.
- Mortgage costs, if you borrow: a mortgage registration fee (0.25% of the loan in Dubai), a bank arrangement fee and a valuation fee.
- Service charges once the building is complete, set per square foot each year.
- Agency fees: when you buy off-plan from a developer through a broker such as NUVÉ, the buyer usually pays no commission.
Frequently asked questions
What is the minimum down payment for an off-plan property in Dubai?
Usually 10% to 20% of the price on booking, plus the 4% DLD fee.
Can expats get a mortgage on an off-plan property?
Yes. In Dubai most expats finance the handover payment once the home is complete, and some banks lend during construction on selected projects. In Abu Dhabi, the 2026 ADREC framework allows mortgages during construction with participating banks, and Modon offers up to 75% financing on its projects.
Is it better to buy off-plan or ready?
Off-plan usually costs less upfront and spreads payments over time. Ready homes can be rented out straight away and are easier to mortgage. The right choice depends on your budget and timeline.
What happens if the developer delays the project?
Your payments sit in an escrow account that the developer can only draw from as building progresses, and the SPA sets out your rights if handover is late.
Talk to NUVÉ Properties
NUVÉ Properties is a RERA-registered brokerage (ORN 50347) with 15 years of experience in UAE real estate. We can compare payment plans across current launches, connect you with mortgage advisers, and work out the full cost before you commit. Browse off-plan projects or message us on WhatsApp.
