Understanding Deposits And Payment Schedules For Off-Plan Properties

Off-plan property investments offer a unique opportunity to purchase real estate before construction completion, but understanding deposits and payment schedules is crucial for steering this investment avenue successfully. This guide gets into the intricacies of deposits and payment schedules, providing investors with insights to make informed decisions and increase their investment.


Deposits work as the initial commitment to secure an off-plan property in Al Furjan Dubai and initiate the purchase process. Typically, developers require a deposit ranging from 5% to 20% of the property’s purchase price upon signing the sales agreement. This deposit demonstrates the buyer’s serious intent and provides the developer with initial capital to kickstart the project. It’s imperative for investors to review the deposit terms carefully, including refund conditions and forfeiture clauses, to mitigate risks and safeguard their investment.

Payment schedules:

Payment schedules outline the timeline and structure of installment payments throughout the construction phase. These schedules vary depending on the developer’s policies and project milestones but generally follow a predetermined timeline linked to construction progress. Investors should thoroughly review the payment schedule to understand key milestones, payment due dates, and escalation clauses. Moreover, clarifying payment methods and associated fees ensures transparency and eliminates surprises during the payment process.

Key components of payment schedules:

Milestone-based payments: Payment schedules typically align with project milestones, such as foundation laying, structural completion, and handover. Each milestone triggers a corresponding installment payment, providing investors with clarity on payment expectations and project progress.

Flexible payment options: Developers may offer flexible payment options to accommodate investors’ financial preferences and constraints. These options may include staggered payments, balloon payments, or extended payment terms, allowing investors to tailor their payment schedule to align with their cash flow and financial objectives.

Escalation clauses: Payment schedules often incorporate escalation clauses to account for inflation, currency fluctuations, or unforeseen project costs. Investors should be aware of these clauses and factor cost adjustments into their financial planning to avoid unexpected financial burdens.

Completion guarantees: Some developers may offer completion guarantees, assuring investors that the project will be completed within a specified timeframe. These guarantees provide investors with additional confidence in the developer’s commitment to timely delivery and project completion.