Check the cash before you reserve
By Syed Farrukh Hussain
Originally published 7 May 2026 | Information checked 1 November 2026
A quotation for an AED 2 million home shows a 10% booking payment. You have AED 200,000 ready. Before reserving it, ask for the complete amount due now and the dates of the next payments.
Quick answer: A 10% payment may reserve an off-plan unit under the developer’s terms. Your starting cash must also cover agreed registration and other charges, while later instalments need their own funding plan.
What does the 10% payment cover?
Check how the developer labels and credits the payment. A booking instalment credited towards the purchase price reduces the balance you owe. An expression of interest, a reservation payment and the full initial instalment can have different conditions. Ask which document you are signing and what it commits you to.
Confirm whether another amount is due shortly afterwards. A schedule can show 10% on booking and another 10% within 30 days. That is a different cash commitment from a schedule with nothing further due for six months.
When comparing off-plan properties in Dubai, obtain the dated payment schedule for the exact unit. A general advert cannot establish its full starting cash requirement.
Count the registration percentage once
DLD’s current initial-sale registration schedule lists 2% of the sale value for the seller and 2% for the purchaser. Together, that is 4%. It also lists AED 10 knowledge and AED 10 innovation fees, and an AED 1,000 developer self-registration fee through Oqood.
Oqood is the registration route for the off-plan sale. Do not automatically add another 4% because a quotation uses the word Oqood. If two percentage charges appear, request an explanation before agreeing to them.
The amount you bear depends on the transaction documents. DLD’s published fee-allocation explanation says the 4% is paid according to the seller-buyer agreement. Ask which fixed charges are payable by you and separate any developer administration charge from government charges.
An illustrative AED 2 million booking
Assume the agreement requires 10% on booking and makes the buyer bear the full 4% registration charge. The example groups those payments at the start for planning; your actual due dates may differ.
| Item | AED | What it means |
|---|---|---|
| 10% booking instalment | 200,000 | Part of the purchase price |
| 4% registration allocation assumed | 80,000 | Transaction cost borne by the buyer in this example |
| Starting subtotal | 280,000 | Before other itemised charges |
| Other amounts payable by the buyer | Use the actual quote | Add confirmed fixed registration and developer charges once |
AED 280,000 is a subtotal, not a complete quotation. There is no assumed administration-fee figure here. Use the developer’s itemised cost sheet. The full Dubai off-plan costs and fees guide covers the separate charges that can arise through handover.
Two 10% bookings can need very different cash
The following schedules are hypothetical. They are not current offers or promises about any developer. Both use an AED 2 million price, a 10% booking payment and a 60/40 split overall. Both assume the buyer pays the full 4% registration charge at the start.
Plan A spreads construction payments further apart. Plan B collects more of the same price early. The totals below include the registration assumption and exclude other itemised charges.
| Payment or cash checkpoint | Plan A | Plan B |
|---|---|---|
| Booking | 10% / AED 200,000 | 10% / AED 200,000 |
| Day 30 | No price instalment | 10% / AED 200,000 |
| Month 3 | No price instalment | 10% / AED 200,000 |
| Month 6 | 10% / AED 200,000 | 10% / AED 200,000 |
| Month 12 | 10% / AED 200,000 | 10% / AED 200,000 |
| Cumulative cash through month 3 | AED 280,000 | AED 680,000 |
| Cumulative cash through month 12 | AED 680,000 | AED 1,080,000 |
After month 12, Plan A collects 10% at each of months 18, 24 and 30. Plan B collects another 10% at month 18. Both then collect 40%, or AED 800,000, at the assumed month-36 handover. Each schedule totals 100% of the price.
The difference is AED 400,000 in the first year, despite identical booking percentages. Ask for the dates and amounts, then add your confirmed charges to every relevant checkpoint.
Calculate what you can sustain after booking
My practical test is to check each payment deadline against cash that can realistically be available after normal spending. Keep a reserve outside the property budget. Expected income should be assessed conservatively.
Consider a second illustration: AED 400,000 is available today, and total cash available by the end of year one is AED 800,000, including that initial AED 400,000. The buyer wants to keep AED 50,000 untouched. All figures below are before other quoted charges.
| Constraint | Calculation before other charges | Price ceiling at this checkpoint |
|---|---|---|
| Booking plus registration | AED 350,000 divided by 14% | AED 2,500,000 |
| Plan A through month 12 | AED 750,000 divided by 34% | About AED 2,205,882 |
| Plan B through month 12 | AED 750,000 divided by 54% | About AED 1,388,889 |
These are upper bounds before other charges. For a usable calculation, deduct the actual charges payable by that checkpoint from the available cash first. Then divide by the cumulative price percentage due plus the registration percentage you bear.
The lower applicable ceiling controls the first-year budget. In this example, the AED 2 million home fits Plan A’s two illustrated checkpoints with AED 70,000 left for quoted charges and further headroom above the protected reserve. Plan B leaves a first-year shortfall of AED 330,000 before other charges, even though the initial booking is manageable.
This does not establish that Plan A is affordable through completion. Repeat the test for every later instalment, the handover balance and expected ownership costs. A possible resale, hoped-for rent or future mortgage should not be treated as money already available.
Apply the same method when reviewing off-plan apartments. For buyers comparing Dubai townhouses or off-plan villas, calculate the cash in dirhams before deciding that a booking percentage is comfortable.
Check the documents before sending money
Ask for the following information in writing:
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Exact unit and price. Confirm the unit reference, total agreed price and what any incentive changes.
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Every payment deadline. Establish what is due on booking, shortly afterwards, during construction, at handover and after handover.
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Itemised charges. Identify who receives each amount, what it covers, who bears it and whether it has already been included.
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Reservation and refund conditions. Check what happens if you withdraw, miss a deadline or do not sign the SPA. Obtain clarification before paying.
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Project and payment details. Verify the registered project and the official payment instructions independently.
Use DLD’s Project Status Enquiry to check the project record and available developer, inspection and escrow information. Save the result and the date checked.
Dubai’s escrow law, particularly Articles 7 and 9, provides for project-specific accounts for off-plan purchaser payments. Verify the beneficiary for purchase instalments, and confirm the proper channel for separate registration charges. Escrow is a project-fund control, not a guarantee of your investment return or an assurance that you can withdraw on request.
When a low booking payment may suit you
It may suit a buyer who has sufficient cash for registration and charges, a credible source for every instalment and enough flexibility to hold through completion. A longer interval before the next payment can help when it matches documented cash availability.
It is a poor fit if booking consumes your reserve, the next payment depends on an uncertain receipt, or completion requires a resale or loan that has not been secured. Reduce the budget or reconsider the timing before signing. Moving a payment later does not remove the obligation.
Also allow for a later handover and the cost of keeping your current accommodation. A contract’s payment triggers and its handover date are separate checks; do not assume a delay automatically changes every due date.
Questions buyers ask
Is 10% enough to reserve a Dubai villa or townhouse?
Only if the selected unit’s current reservation terms allow it. Obtain the exact initial instalment and any top-up deadline. Add your agreed registration allocation and other payable charges. A property type or developer name alone does not establish the booking terms.
Does 10% mean that only 10% is paid before handover?
No. It can describe only the booking instalment. Read the full schedule to identify everything due during construction and the balance at or after handover. The two illustrations above both begin at 10% but require much more before completion.
Is Oqood another 4% on top of DLD registration?
Do not add a second 4% automatically. DLD’s published initial-sale schedule shows a combined 4% registration percentage, alongside fixed items. Ask for an itemised explanation if your quotation appears to charge that percentage twice.
Is the booking payment refundable before signing the SPA?
Do not assume that an unsigned SPA gives you an automatic refund. Read the EOI or reservation document you are actually signing, obtain the withdrawal conditions in writing and seek independent legal advice for an unclear commitment or active dispute.
Can a future mortgage cover the handover balance?
Any intended finance needs a lender assessment for your circumstances and the property. Treat the amount and timing as unconfirmed until the lender establishes them. Test the handover payment separately and consider what happens if the approved amount is lower than expected.
Decide using the complete payment calendar
I would proceed when the exact unit fits the budget at booking and at every later deadline, after charges and a reserve. If the calculation works only when you assume a quick resale, guaranteed rent or an unconfirmed loan, the purchase needs further review.
Request a cash-flow-based shortlist. Use the enquiry form on this page and share your total property budget, cash available now, comfortable instalment capacity and purchase purpose. I can help compare current unit-specific quotations against that brief.
