1% Vs Post Handover Payment Plan: Which One Should You Choose?

In the year 2013, the post-handover plans were formed to attract buyers around the world to create a new payment mode with low down payments and no interest options.

And in the year 2015, well-known builders such as Sobha, DAMAC, EMAAR, and more started offering this plan in both mid-range luxury off-plan projects, and in 2025, this plan came with most of the projects in Dubai.

Danube Properties is the name behind conceptualizing this 1% monthly payment plan in Dubai for affordable properties so that more and more investors can buy property in Dubai without financial fear.

And this, continued as it gained popularity and total sales tractions too, so in the year 2018, builders such as Binghatti, Azizi, Samana and more started with the similar mode of payment plans to gain the trust of the buyers and offered them the flexibility of buying a home in Dubai that says “YOU LIVE & PAY LATER.” now in many off plan projects this attractive plan is available.

Q-  What is a post-handover plan?

The Dubai Post Handover Plan comes with the simple concept of live now and pay later, as you need to pay a down payment (for example, 40%) of the total value, and then the remaining 60% after you unlock the home, which means at the time of handover.

And this 60% amount can be paid monthly or quarterly, depending on the choice of the buyers. And interestingly, there is no pressure for bank loans, as the amount can be cleared in a 1-5 year time gap.

Understanding the Post-Handover Plan Through Structure

PHASE	PAYMENT
At the time of booking	Pay 10%
During construction period	Pay 30%
At the time of possession	Get the keys
Post Handover plan	Pay remaining 60% monthly or quarterly (In 1-5 years of time)

This popular payment mode is favourable among investors and end users as they want to clear the payments as soon as possible so that the full ownership can be accessed before time, and in maximum of 5 years to you own the property with rights, below get the right breakdown of post-handover plan to understand its flexibility: -  

PROS OF POST-HANDOVER PLAN IN DUBAI

• No need to worry about immediate financing as there is no pressure to make a big payment at once
• With a low entry point you can freeze the property and pay later on which can be up to 5 years
• Simply just move in and worry about the payments later on
• Rent it out and clear the instalments of your home
• Great way to generate rental income without even paying the full amount of the property
• Enjoy capital appreciation without even clearing the full amount

CONS OF POST HANDOVER PLAN IN DUBAI

• No right to resell the property before you make a full payment
• No legal documents for your ownership until you clear the entire amount
• Monthly or quarterly expenses in the form of payments
• The overall price of the property is higher comparatively
• Delays in payment can lead to penalties

Now let us take the comparison ahead with its 1% payment plan which is also the right choice for investors and buyers as it comes with flexibility and financial comfort, so time to understand why it is gaining popularity among ex-pats planning to invest in off plan property in Dubai:-

Q-  What is a 1% Payment Plan?

In simple words, a 1% Payment Plan gives leeway to the buyers to just pay a small amount of the total value which can be just 10-20 per cent, and then the rest of the payment is modified for 5-7 years whereby paying 1% the buyer can clear the amount. 

So, in short, buy property in Dubai with monthly instalments to meet affordability which is still a dream for heaps of end users seeking flexible financing solutions to own a property in this premium city.

Property for AED 1 million	Pay 10% as booking value
	Pay 1% of it that comes out as AED 10,000 for 7.5 years

PROS OF 1% PAYMENT PLAN IN DUBAI

• No stress to pay the major amount as monthly instalments are on the lower side
• With just 10-20% you can clear your payments yearly
• With minimum investment, you can buy your dream home
• Lucrative way to enter real estate with bearable upfront investment
• It comes with lower financial risk as less amount is involved
• The payment is always fixed, and no interest is taken (Depending on the builder)
• Perfect option for novice home buyers or investors to buy a property with a 1% payment

CONS OF 1% PAYMENT PLAN IN DUBAI

• No legal documentation that you own a property
• Such kind of payment plan is not available to most builders
• Need to pay for longer time that can be up to 8 or more years
• You are bound to pay without delay

After the right breakup of these plans, let us take you to the side-by-side comparison to unlock all your doubts because it is about a financial investment where understanding is the key consideration

Side by Side Comparison: Post Handover Vs 1% Payment Plan

ASPECTS	POST HANDOVER	1% PAYMENT PLAN
Breakup	Pay during construction and then after handover	1% fixed payment of the total property
Time involved	5 years	7 years
Initial amount	10-20% depending on the builder	10-20% depending on the builder
Interest rate	0% (depends on the builder)	0% (depends on the builder)
Any penalty	Yes, if the payment is not time	Yes, if the payment is not time
Ownership	It is given on time	It is given on time
Can you earn	Yes, you can put it on rent and clear your payments	Yes, you can put it on rent and clear your payments
Ideal for	Investors and expats	First time home buyers
Which builder provides this plan	Sobha, DAMAC, EMAAR and more reputed builders offer this plan	Danube, Binghatti, Azizi, Samana and more started this payment mode
Why this?	Go for it and put the property on rent	Move and pay later with just 1% amount

Comparing both the plans side by side leads to the conclusion that the 1% payment plan comes with less financial burden and gives you freedom to live in a property without managing a big upfront amount, and on the other hand, if you want property for investment, then go for Post Handover plan and put the property on rent where you gain both rental & appreciation profit. 

• Benefits of choosing a Post Handover plan
• Pay small value during construction and rest later on
• Get way to rent out the property as quickly as possible
• No mortgage approvals or loan stress
• Unlock appreciation without even clearing your last payment
• Benefits of choosing a 1% Payment Plan
• Pay amount when the property is built
• Get longer time to clear the payments
• Don’t have to seek for bank approval
• Move in immediately after handover without even paying

What to watch out for?

There are limitations of everything that is created, and so as these plans where there are some key considerations that you need to keep in mind before choosing them: - 

DOWNSIDE FOR POST HANDOVER PLAN

• You can’t sell the property
• The burden of payment is more so you can’t look for more
• Stress to rent out the property as soon as possible
• Should have stable funds to clear the installments

DOWNSIDE OF 1% PAYMENT PLAN

• The period is too long to clear the amount, so stress is more
• The property is pricey, around 15-25% more
• There is no exit, and you are not liable to resell the property
• In case you miss the installment, be ready for a penalty
• Pressure to manage the monthly amount

With this, it is also important to curtail the overall risk where you should always pick a reputed builder in Dubai such as EMAAR, Danube, Sobha, Binghatti and lots more holding a clear track record and also it is RERA approved, other than this, as properties under these plans are generally on the higher side, so negotiate the value as much as possible

And along with this, ensure that you can actually maintain the value to avoid being a payment defaulter, and having legal advice and the right assistance is always recommended to shift your risk level.

So for this Dubai Housing is one of the secured platforms that serve the right property choice for the right buyer because needs are always different, and they define it properly so that the best can happen, and as you know real estate investment involves finances, so its right placement with no risk strategy takes dense understanding with the current market situated, in that case, you need an accurate assistance with actual facts about Dubai’s real estate market.

Both the plans are meticulously designed for the buyers & investors residing locally or internationally, where they can opt for these options, but depending on the situation, need, and idea of investing, considering the Post Handover Payment plan is great if you have a financial buffer and want ownership as quickly as possible, also to rent it out and start having income from your property.

And on the other hand, a 1% payment plan is right for those who want to move in as early as possible so that they don’t have to live in a rented home, and rather they pay that amount to gain ownership of the property with just a 1% monthly installment, but in this case, you have to ensure that you have contingency savings or rainy day funds to manage these monthly installments.

In case if you want more statistics about these plans or the latest projects offering these plans, then stay tuned here to get updated and find the best, because Dubai has lots of real estate potential, and the right decision can make you a pro investor.