Buying property in Dubai has become increasingly attractive to foreign investors, especially those who prefer to enter the market through developer instalment plans rather than paying the full purchase price upfront. Dubai is one of the few global markets where purchasing under-construction property directly from developers using structured payment plans is both common and well-regulated.
This payment model allows investors to secure a property early, spread payments over time, and position themselves within new and growing communities—without needing to provide the full capital immediately. This also allows investors to benefit from the full capital appreciation of the unit, even if they are paying gradually through monthly or milestone-based instalments. Moreover, for many foreigners, this is one of the most accessible and practical ways to start building a real-estate investment portfolio in Dubai.
In this guide, we will explain exactly how buying property on instalment works in Dubai, what under-construction purchases involve, how payment plans are structured, and what foreigners must understand before choosing a project. This article is written to help you make informed decisions and understand why expert advisory support is essential in Dubai’s evolving real estate landscape.
By the way, if you need guidance or advisory support during the property purchase process through instalments, feel free to contact me. As an investment advisor at fäm Properties, I would be glad to provide my services to you.
What Does Off-Plan Property Purchase in Dubai Mean (Under Construction or From a Planned Project)?
Most foreigners already understand what buying under construction or buying on instalment means. In Dubai, these terms are simply part of a structured and well-regulated system known as off-plan purchasing. Off-plan property purchase in Dubai refers to buying a property before its construction is complete — and in some cases, even before construction has started.
In practical terms:
- Buying under construction = purchasing a property before it is completed.
- Buying on instalment = paying gradually through a developer-approved payment plan.
- Buying off-plan = the official industry term used in Dubai for the same process.
Developers launch these projects with structured payment plans so investors can secure units early, take advantage of growing communities, and spread payments over time instead of paying the full price upfront, and while benefiting from capital appreciation.
This approach has become especially popular among foreigners because it:
- Lowers the initial financial requirement
- Allows flexible long-term payment planning
- Provides access to new communities and early pricing
- Supports steady investment growth (capital appreciation) while the project is being built
Instalment Payment Plans: How Do They Work When Buying Property in Dubai?
Developers in Dubai structure payment plans in several formats for off-plan purchases (under-construction or newly launched projects). Understanding these plans helps you choose the one that aligns with your financial comfort and investment strategy.
Construction-Linked Payment Plans
These payment plans are tied to the actual construction progress of the developer. So, you make payments for your future apartment in Dubai based on the project’s construction phases.
You typically pay:
- a deposit at booking
- instalments when construction reaches specific percentages
- a final instalment at handover
This provides comfort to foreign investors because payments follow visible progress of the building.
Example Structure (Illustrative Only):
- 10% at booking
- 10–20% during early construction stages
- 40–50% across multiple milestones
- 20–30% at handover
Note: Actual percentages vary by project and developer.
Time-Based (Fixed Schedule) Payment Plans
These plans set fixed dates for payments regardless of construction progress. So, you make payments for your unit according to a mutually agreed timeline.
For example:
- 10% booking
- equal instalments every 3 or 6 months
- final instalment at handover
This structure is suitable for foreign investors who prefer a predictable and easy-to-plan payment schedule.
Post-Handover Payment Plans
Some developers offer payment plans where:
- a large portion is paid during construction
- the remainder is paid after handover over 1–3 years This allows you to:
- receive the unit
- potentially lease it
- generate rental income
- continue paying the remaining instalments
These are popular among foreigners who want to start earning rental income before completing the full payment.
Monthly 1% Payment Plans (Offered by Some Developers)
Several well-known developers in Dubai also offer simplified 1% monthly payment plans for selected projects.
This means:
- you pay a small booking amount
- then continue paying 1% of the property price every month until the agreed percentage is completed
- with the final balance usually due at handover or shortly after
This structure provides:
- very soft entry for foreigners
- stable cash-flow management
- predictable monthly instalments
- the ability to invest without large upfront payments
Monthly 1% plans are especially attractive for buyers who want to invest gradually while securing a strong future-growth location.
Legal Safeguards in Dubai: What You Must Know About Escrow Accounts When Buying Property on Instalment
When foreigners buy property in Dubai through instalment plans (under construction / off-plan), escrow protection is one of the most important safety mechanisms in the entire transaction. This legal structure ensures that your instalment payments are secure and used only for the project you are purchasing.
What Is an Escrow Account in Dubai’s Property Market?
An escrow account is a dedicated, project-specific bank account opened by the developer for each under-construction development. All instalment payments you make — whether monthly, milestone-based, or post-handover — must legally be deposited into this specific escrow account.
The developer cannot access the funds freely. Money is released only when verified construction milestones are achieved and confirmed by government-approved auditors.
This system ensures:
- transparency
- financial protection for buyers
- proper use of your instalments
- regulated project development
In Dubai, escrow accounts are mandatory under Law No. 8 of 2007 on Escrow Accounts for Real Estate Development and its amendments.
How Escrow Protection Works for Instalment-Based Purchases
Here is how the system protects foreign buyers who purchase property under construction — or directly from a newly launched project before construction starts — through instalment-based payment plans in Dubai:
- Each project must have its own escrow account: The developer must open a separate escrow account for every project in a DLD/RERA-approved bank. Your instalments must go directly into that account — never into a general company account.
- Payments are released only after verified construction progress: Licensed auditors review the construction stage and confirm completion before funds are released to the developer. This ensures developers cannot receive money without building progress.
- Buyer protection if a project is cancelled: If a project is cancelled or suspended, escrow regulations provide clear procedures for refunds or financial settlements.
- Financial transparency and compliance: Escrow accounts prevent misuse of buyer funds and ensure the project is financially supported throughout development.
What Foreign Buyers Should Check Before Paying Instalments
Before making any instalment payment, confirm these three points:
- The project is registered with DLD/RERA.
- You receive the correct, official escrow account details.
- Every instalment you pay is deposited into the project’s dedicated escrow account.
It is highly recommended to verify all of this together with your advisor (expert) and ensure that an experienced expert guides you through the process.
Key Factors Foreign Buyers Should Analyze Before Choosing a Project
Choosing where to invest is not simply about liking the brochure or the payment plan. Foreign investors benefit from professional guidance because many details are not visible in marketing material.
It is recommended to review the following key points:
- Developer reputation and past delivery quality
- Project location and future development potential
- Payment plan structure (is it comfortable for you?)
- Community master plans and infrastructure pipeline
- Expected tenant demographics after handover
- Rental and resale prospects based on area trends
- Financial planning: aligning instalments with your budget
When these factors are analyzed properly, buying under construction becomes a powerful investment strategy.
How to Buy Property in Dubai on Instalment: Step-by-Step Guide for Foreign Investors
Buying property in Dubai through instalment plans (whether under construction or from a newly launched off-plan project) follows a clear and regulated process. Below is a practical, easy-to-follow framework specifically designed for foreign investors who want to purchase property in Dubai using developer payment plans.
1. Step: Define Your Investment Strategy
Before selecting a property or payment plan, you should identify:
- Your investment goal: capital appreciation, rental income, future relocation, or a mix of these
- Your financial horizon: whether you prefer short-term instalments or long-term spread payments
- Your budget and preferred payment structure: construction-linked, fixed schedule, post-handover, or monthly 1%
- Your target locations and property types: apartments, townhouses, villas, or premium waterfront units
Most importantly, consult an investment advisor experienced in Dubai’s off-plan and instalment-based market. An expert can validate your assumptions, check real market data, and guide you toward projects that match your goals and financial strategy.
2. Step: Choose the Developer & Project Carefully
When buying property on instalment, the choice of developer matters greatly. You should:
- Evaluate the developer’s delivery record: choose reputable firms with consistent quality and timely handovers
- Review the project’s suitability: not every popular project fits every investor’s goal or payment comfort
- Study the master plan and community development: infrastructure, amenities, and future phases matter
- Compare pricing with similar areas: early entry often provides better value and stronger growth
- Verify the official Escrow Account: all instalment payments must go into the project’s dedicated escrow, ensuring your money is protected
- Examine the SPA contract: review all terms related to delays, timelines, finishing, payment plan, and resale conditions
3. Step: Reserve the Unit & Sign the Contract
Once you have selected your project:
- Pay the initial reservation fee (usually 5–10% of the unit price) to secure the property in your name
- Review and sign the Sales & Purchase Agreement (SPA) which outlines the payment plan, technical details, construction expectations, and legal rights
- Ensure the property is registered in DLD’s Oqood system, giving you official buyer protection
- Confirm that every instalment you pay goes directly to the project’s escrow account
Your advisor should verify all documents and ensure everything matches your investment plan and Dubai’s legal regulations.
4. Step: Follow the Instalment Plan & Complete Handover
During construction, make payments according to the agreed schedule (construction-linked, fixed timeline, monthly 1%, or post-handover).
As the handover approaches:
- The developer will issue a handover notice
- You must inspect the unit and prepare a snag list if needed
- Pay the final instalment
- Complete your Title Deed registration
After handover, decide your strategy:
- Move in
- Rent the property (short-term or long-term)
- Hold for appreciation
- Sell at the ideal time
It is highly recommended to review every detail with your advisor, who can also assist you with market comparisons, rental strategy, and resale planning.
Professional Real Estate Consulting for Buying Property on Instalment in Dubai
With deep knowledge of Dubai’s instalment-based property market — including under-construction projects, new off-plan launches, and developer payment plans — I, Siraj Sultanli, help foreign investors make confident and well-informed decisions when purchasing property in Dubai.
As part of fäm Properties, Dubai’s largest and most technologically advanced real estate company with nearly two decades of experience, 35 branches, and more than 3,000 professionals, I guide clients through every stage of buying property on instalment — from defining the investment strategy to selecting the right project, reviewing payment plans, verifying escrow details, and completing the purchase safely.
With the support of our expert team, investors benefit from professional guidance at every step — whether it’s navigating legal procedures, understanding payment structures, or planning long-term investment strategy. This ensures that your instalment-based property purchase in Dubai is smooth, transparent, and aligned with your goals.
If you are considering buying real estate in Dubai through instalment plans or under-construction projects, remember that you have fäm Properties beside you — and I am here to guide you personally throughout the entire journey.
