In a bid to ensure timely completion and delivery of off-plan projects, some Dubai developers are now demanding up to 50% of the total payment from buyers within just 14 months of a project’s launch. This influx of capital has allowed developers to fast-track construction, often handing over properties well ahead of schedule.
According to industry experts, the trend is partly driven by the robust financial health of developers, who are leveraging these upfront payments to avoid project delays and cancellations. Farooq Syed, CEO of Springfield Properties, highlighted that major developers often collect around 40% of the payment within the first year of the project, and up to 50% within 14 months. “This strong cash flow ensures that construction proceeds rapidly, significantly reducing the risk of default and ensuring timely project completion,” Syed said. He noted that some projects are being handed over six to eight months ahead of schedule, reflecting the developers’ strong financial position.
However, while some developers are capitalizing on these aggressive payment structures, others are opting for more flexible payment plans aimed at maintaining steady cash flow. Ramjee Iyer, chairman and managing director of Acube Developments, noted that these flexible plans are part of a broader strategy to attract a wider range of buyers, including both investors and end-users. “While aggressive payment plans boost sales and make properties more accessible, they also require careful financial management to mitigate risks such as buyer default and potential long-term price instability,” Iyer explained.
The post-pandemic period has seen unprecedented growth in Dubai’s property market, driven by high demand from both residents and foreign investors. As the market continues to thrive, developers are adopting varied payment strategies to remain competitive while ensuring project completion and maintaining financial health.
