In Dubai, payment schedules for property purchases are structured to provide flexibility and cater to a wide range of buyers, from investors to end-users. The structure of these payment plans can vary significantly depending on the developer and the type of property (off-plan or ready). Here's a comprehensive breakdown of how payment schedules are typically structured and where payments are directed:

1. Standard Payment Plans

• Down Payment: Typically, buyers are required to make an initial down payment of 10% to 30% of the property’s value. This payment is usually made upon signing the Sales and Purchase Agreement (SPA).
  
  

• Instalments During Construction: For off-plan properties, payments are often spread out over the construction period. Developers may ask for additional instalments tied to construction milestones, such as 10% upon completion of the foundation, another 10% at the completion of the structure, and so on.
  
  

• Final Payment on Handover: The remaining balance, often around 40% to 60% of the property’s value, is due upon handover of the property.
  
  

2. Post-Handover Payment Plans

• Extended Payment Terms: Many developers in Dubai offer post-handover payment plans, allowing buyers to pay a portion of the property’s value after moving in. These plans can extend from 1 to 10 years post-handover, making property ownership more accessible by spreading out the financial burden.
  
  

• 1% Monthly Payment Plans: Some developers, such as Danube, have introduced innovative payment plans where buyers pay as little as 1% of the property’s value monthly. This structure is designed to make it easier for buyers to manage their finances, particularly in the high-end villa market.
  
  

3. Payment Recipients

• Escrow Accounts: All payments for off-plan properties must be made into an escrow account managed by an independent third-party bank. This ensures that funds are only used for the specific project you are purchasing into, providing an additional layer of security for the buyer.
  
  

• Developer Direct Payments: For ready properties, payments are often made directly to the developer or their authorized representatives. The final payment usually includes any outstanding amounts and must be settled before the title deed is transferred.
  
  

4. Developer-Specific Payment Plans

• Emaar: Emaar, one of Dubai's largest developers, often offers flexible payment plans that can include a lower down payment and extended post-handover terms, making their properties more accessible.
  
  

• Nakheel: Known for its luxury developments like Palm Jumeirah, Nakheel offers various payment plans that might include larger down payments with reduced instalments or the option to extend payments after handover.
  
  

• DAMAC: DAMAC Properties frequently offers promotional payment plans, such as the "50/50" scheme, where buyers pay 50% during construction and the remaining 50% upon completion.
  
  

By understanding these payment structures and the associated processes, you can better plan your purchase and select a property that aligns with your financial capabilities. It's advisable to consult with your realtor and legal advisor to ensure all aspects of the payment plan are clear and manageable.

For more specific details on current payment plans, it's recommended to check with the respective developers