English · Diese Seite auf Deutsch lesen
60 to 80 %
of the price paid from your own funds during construction, on the developer's plan.
Bank practice20 to 40 %
Final instalment at handover that a bank finances: handover finance.
Bank practiceThree to four months
Lead time before the handover date to apply.
Nexus Bridge experienceAll figures are documented on this page; the sources are listed at the end of the page.
On this page
The short answer
In two stages. During construction you pay the developer's instalment plan from your own funds, often 60 to
80 per cent of the price by handover. The final instalment, 20 to 40 per cent, is financed by a bank once the
property is finished: that is handover finance. Apply three to four months before the handover date. The
bank lends against the lower of price and valuation, usually 65 per cent and in some cases 50, which on a final instalment of 20 to 40 per cent covers it in most cases. A gap mainly appears when the bank lends only 50 per cent and the valuation comes in well below the price; you pay that difference from your own funds.
How to read this guide. Every statement is labelled:
Official rule a binding requirement set by the central bank or an authority ·
Bank practice terms set by individual banks, which can change at short notice ·
Nexus Bridge experience what we observe in live mandates ·
Worked example an illustrative calculation, not an offer.
Why the bank waits for completion
Official rule Three reasons, and only the first is negotiable in theory:
- The central bank sets a loan-to-value cap of 50 per cent on off-plan property, for every category of buyer.[1]
- Every approval requires an independent valuation,[2] and a valuation of a partly built structure carries little weight.
- Before completion there is no title deed, only the interim Oqood registration with the Dubai Land Department.[4] There is nothing yet to register a mortgage against.
Bank practice The joint bank-and-developer programmes that have appeared since 2025, financing from 30 to 50 per cent construction progress, are aimed predominantly at residents. Treat them as an exception to check, not a plan to rely on.
What this means for the market you are shopping in. Off-plan accounted for 58,840 of 86,000 sale
transactions in the first half of 2026 but under half the value.[5] The larger part of the
market by volume is the part a bank will not fund until it exists. If your plan depends on a mortgage, the financeable
market is completed stock, which in July 2026 also traded at a median 24.9 per cent less per square foot than
off-plan.[6]
The timetable, backwards from handover
| When | What happens | Who |
|---|---|---|
| Construction phase | instalments per the payment plan from your own funds; keep every payment receipt; open a non-resident account if you do not have one | you |
| 4 months before handover | refresh the documents, income, statements, credit report; review the profile; choose the lender | you and us |
| 3 months before handover | pre-approval, usually valid 60 days | the bank |
| 6 to 8 weeks before | developer confirms completion; the bank instructs the valuation | developer, bank |
| 3 to 4 weeks before | final offer letter, signature, insurances | bank, you |
| Handover | the bank pays the final instalment to the developer; title deed and mortgage are registered with the Land Department the same day[3] | bank, DLD, trustee |
Nexus Bridge experience The most common mistake is waiting for the developer's handover notice. That typically leaves four to six weeks, not enough for a valuation, an offer letter and a Land Department appointment. The developer's late-payment penalty is more expensive than every bank fee in the transaction put together.
Worked example: AED 2,000,000 on a 70/30 plan
Worked example Off-plan purchase at AED 2,000,000, payment plan 70/30. AED 1,400,000 paid during construction, final instalment AED 600,000. Valuation at handover: AED 2,000,000.
| Item | Amount |
|---|---|
| Paid during construction (70 %) | AED 1,400,000 |
| Final instalment (30 %) | AED 600,000 |
| Bank finances 65 % of AED 2,000,000 | AED 1,300,000 |
| Cover for the final instalment | full, with AED 700,000 of headroom |
| DLD transfer fee 4 %, if not paid at Oqood | AED 80,000 |
| Mortgage registration 0.25 % + AED 270 | ≈ AED 3,540 |
| Trustee, valuation, arrangement fee | budget separately |
Worked example If the valuation disappoints. At AED 1,850,000 the loan falls to AED 1,202,500, still well above the final instalment. A gap only opens with a lender at 50 per cent loan-to-value and a valuation below AED 1,200,000. That is why handover finance is comparatively robust for a non-resident: the equity is already in the property before the bank is asked for anything.
Where it goes wrong
- Starting too late. Three to four months, not four weeks.
- Assuming the payment plan and the mortgage overlap. They do not. Every construction instalment is your money.
- Not keeping the payment receipts. The bank reconstructs what you have already paid from them; missing receipts turn into questions.
- No UAE account. It carries the instalment afterwards and takes weeks to open, start it during construction, not at handover. See opening a UAE bank account.
- Ignoring the completion risk. A delayed project moves the whole timetable, and a pre-approval expires after about 60 days. Refresh it rather than let it lapse.
Read next: the full non-resident mortgage guide, the buying process step by step and the current market report.
Frequently asked questions
Can a non-resident finance an off-plan property in Dubai?
In two stages. During construction you pay the developer's instalment plan from your own funds, often 60 to 80 per cent of the price by handover. The final instalment, typically 20 to 40 per cent, is financed by a bank once the property is complete. That is handover finance, and it is applied for three to four months before the handover date.
Why will a bank not finance an off-plan unit earlier?
Three reasons. The central bank caps the loan-to-value on off-plan property at 50 per cent for every category of buyer. Every approval requires an independent valuation, and a valuation of a partly built structure carries little weight. And before completion there is no title deed, only the interim Oqood registration with the Dubai Land Department.
When should I apply for handover finance?
Three to four months before the expected handover. The most common and most expensive mistake is waiting for the developer's handover notice: that usually leaves four to six weeks, which is not enough for a valuation, an offer letter and a Land Department appointment. Developer late-payment penalties cost more than any arrangement fee.
How much will the bank lend at handover?
Once the property is complete it is treated as a completed property: usually 65 per cent of the lower of price and valuation for a non-resident, and in some cases 50 per cent. On a normal 70/30 payment plan that covers the final instalment comfortably.
What if the valuation comes in below the purchase price?
The loan follows the lower figure. On a 70/30 plan there is usually enough headroom that a modest shortfall does not create a gap, but at 50 per cent LTV and a materially lower valuation it can. Model that case before you rely on the finance.
Are the developer instalments I already paid counted as equity?
Effectively yes: they are the equity in the transaction. What the bank finances is the remaining amount, subject to the loan-to-value on the whole value.
Can I take out more than the final instalment?
Some lenders offer equity release against the completed property, which can pay out more than the outstanding instalment. It is a separate decision with its own terms, and it is assessed on the same debt-burden cap as the mortgage itself.
What costs fall due at handover?
The Dubai Land Department transfer fee of 4 per cent if it was not already paid at Oqood registration, mortgage registration of 0.25 per cent plus AED 270, the trustee fee, the valuation and the bank's arrangement fee. Budget for them separately from the final instalment.
Sources
- UAE Central Bank Rulebook, Regulations Regarding Mortgage Loans, https://rulebook.centralbank.ae/en/rulebook/regulations-regarding-mortgage-loans (accessed 5 September 2026).
- UAE Central Bank Rulebook, Article 3, Important Ratios (loan-to-value, debt burden, tenor), https://rulebook.centralbank.ae/en/rulebook/article-3-important-ratios (accessed 5 September 2026).
- Dubai Land Department, Request for Mortgage Registration, https://dubailand.gov.ae/en/eservices/request-for-mortgage-registration/ (accessed 5 September 2026).
- Dubai Land Department, Property Sale Registration (transfer fee and process), https://dubailand.gov.ae/en/eservices/property-sale-registration/ (accessed 5 September 2026).
- Dubai Land Department, Dubai real estate transactions surge 31% to AED 252 billion in Q1 2026, https://dubailand.gov.ae/en/news-media/dubai-s-real-estate-transactions-surge-31-to-reach-aed-252-billion-in-q1-2026/ (accessed 5 September 2026).
- PropertyIndex, Dubai residential price index, median price per square foot, July 2026, https://www.propertyindex.ae/ (accessed 5 September 2026).
- Nexus Bridge Capital, Dubai Monitor, issue 01, September 2026 (German), https://www.nexusbridgecapital.de/guide/dubai-monitor-09-2026/
DT
Written by Denise Tanrikul, Managing Partner · Reviewed by Martin Krygier, Manager, himself a property buyer, refurbisher and landlord in Germany and Dubai
Last reviewed 5 September 2026. Regulatory statements come from the primary sources linked at the foot of each page (UAE Central Bank, Dubai Land Department, federal authorities) and are refreshed at least quarterly. Bank terms change at short notice, always confirm the current position with the lender before deciding.