Why this affects so many people in 2026
Between 2022 and 2025, record numbers of off-plan apartments were sold in Dubai – many with payment plans such as 40/60 or 50/50. These apartments are now being completed. At the same time, prices have fallen in parts of the market and rents have come down. At handover, banks lend on the basis of their own valuation – if it comes in below the purchase price, the gap gets bigger.
Option 1: Resell in good time
You sell your purchase contract before handover to a new buyer who takes over all remaining instalments. You get back the amount you have paid in – plus a premium or minus a discount, less your costs (NOC and, where applicable, a transfer fee). This usually requires 30–40% to have been paid and no instalments to be outstanding. Time needed: 1–3 months – so start 4–6 months before the handover payment is due.
Option 2: Mortgage at handover
A bank finances the remaining amount once the apartment has been completed. Things to know:
- As long as the contract is only in Oqood status, banks lend a maximum of 50% under the Central Bank’s rules.
- Once the title deed has been issued, up to 80% is possible for residents; for non-residents, in practice it is usually only 50–60%.
- The bank lends on the basis of the lower of the purchase price and the valuation. According to market reports, a gap of 5–10% is not unusual.
- Budget for additional costs: mortgage registration (0.25% of the loan), processing (0.5–1%), valuation (approx. AED 2,500–3,500).
You should apply for pre-approval around 3–4 months before handover.
Option 3: Negotiate with the developer
Some developers offer payment deferrals, a post-handover payment plan or a switch to a smaller unit. You have no entitlement to this – but an early, factual conversation backed by evidence of your situation improves your chances. Get every concession in writing.
Option 4: Mutual cancellation
You and the developer cancel the contract by mutual agreement (registered via the Dubai REST app). This is quick (often 4–8 weeks), but developers frequently retain 25–40% of the amount paid. The refund comes from the RERA-supervised escrow account.
Option 5: Stop paying – the most expensive option
If you fall into arrears, the developer can terminate the contract after setting a deadline. Under Law No. 19 of 2020, depending on construction progress, it may retain:
| Construction progress | Possible retention |
|---|---|
| below 60% | up to 25% of the purchase price |
| 60–80% | up to 40% of the purchase price |
| above 80% | up to 40% – or a claim for the full remaining amount |
For example, if you have paid 40% and construction is 70% complete, in the worst case you could lose everything you have paid in.
The options at a glance
| Option | Duration | Your risk |
|---|---|---|
| Resale | 1–3 months | low to medium (price) |
| Mortgage | 4–8 weeks from application | valuation gap, interest |
| Negotiation | open | no guarantee |
| Mutual cancellation | 4–8 weeks | deduction often 25–40% of payments |
| Default | months | loss of up to 25–40% of the purchase price |
Our advice
Run your numbers now – not when the payment demand arrives. The free Exit Calculator compares resale, holding with a mortgage and default for your specific figures.
PLANSWAP is an introduction and information portal and is not itself a real estate broker. Transactions in Dubai are handled exclusively by RERA-licensed partner brokers. All calculations are non-binding estimates without guarantee and do not constitute investment, tax or legal advice. Fees and rules may change and depend on the respective developer.