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Dubai Daily E51: Developer Payment Plan Deep Dive - 80/20 vs 10/70/20 vs 60/40 Structures
Welcome to Dubai Daily, your essential morning briefing on Dubai's real estate market.
šļø EPISODE OVERVIEW
Comprehensive analysis of developer payment plan structures including 80/20, 60/40, 10/70/20, post-handover, and 1% monthly plans. Learn leverage optimization, cash flow impact, developer-specific strategies, and how to match payment structures to your investor profile.
š KEY TOPICS COVERED
ā¢ 80/20 payment structure: 80% construction, 20% handover (Nakheel Bay Villas, Emaar premium)
ā¢ 60/40 payment structure: 60% construction, 40% handover (Damac, Sobha SeaHaven)
ā¢ 10/70/20 payment structure: 10% down, 70% construction, 20% handover (Emaar Oasis, Sobha One)
ā¢ Post-handover plans: Payments continue 2-3 years after completion (rental income offset)
ā¢ 1% monthly plans: Predictable payments for salaried professionals (Danube Properties)
š” KEY TAKEAWAYS
ā¢ 10/70/20 plans offer 2x leverage: Control 5M dirhams with 500K down vs 2.5M with 80/20, but require strongest construction-phase cash flow (39-58K monthly)
ā¢ 80/20 plans minimize handover debt: 80% paid during construction, 20% at completion, ideal for cash-rich investors (33-58K monthly)
ā¢ 60/40 plans balance payments: Moderate construction payments (22-42K monthly), larger handover typically mortgage-financed, suits balanced investors
ā¢ Post-handover plans allow rental income offset: 6% yield (120K annually) partially offsets 200-300K annual post-handover payments
ā¢ Additional costs add 5-7%: DLD (4%), Oqood (1-5K), service charges (15-30/sq ft), agency (2% + VAT)
š DATA SOURCES
Emaar Properties | Damac Properties | Nakheel | Sobha Realty | Dubai Land Department | Property Monitor | Arabian Business | Gulf News
---
š CONTACT PARAG KUNDALWAL | CONSULTAA
Founder & CEO, Consultaa - Dubai Real Estate Consulting & Global Capital Advisory
š LinkedIn: https://www.linkedin.com/in/paragkundalwal/
š Website: https://consultaadxb.com
š§ Email: [email protected]
š± Phone: +971585964631
Dubai Daily airs Monday to Friday at 7:00 AM Dubai time.
Subscribe for your daily dose of Dubai real estate intelligence.
View all episodes
By Parag KundalwalWelcome to Dubai Daily, your essential morning briefing on Dubai's real estate market.
šļø EPISODE OVERVIEW
Comprehensive analysis of developer payment plan structures including 80/20, 60/40, 10/70/20, post-handover, and 1% monthly plans. Learn leverage optimization, cash flow impact, developer-specific strategies, and how to match payment structures to your investor profile.
š KEY TOPICS COVERED
ā¢ 80/20 payment structure: 80% construction, 20% handover (Nakheel Bay Villas, Emaar premium)
ā¢ 60/40 payment structure: 60% construction, 40% handover (Damac, Sobha SeaHaven)
ā¢ 10/70/20 payment structure: 10% down, 70% construction, 20% handover (Emaar Oasis, Sobha One)
ā¢ Post-handover plans: Payments continue 2-3 years after completion (rental income offset)
ā¢ 1% monthly plans: Predictable payments for salaried professionals (Danube Properties)
š” KEY TAKEAWAYS
ā¢ 10/70/20 plans offer 2x leverage: Control 5M dirhams with 500K down vs 2.5M with 80/20, but require strongest construction-phase cash flow (39-58K monthly)
ā¢ 80/20 plans minimize handover debt: 80% paid during construction, 20% at completion, ideal for cash-rich investors (33-58K monthly)
ā¢ 60/40 plans balance payments: Moderate construction payments (22-42K monthly), larger handover typically mortgage-financed, suits balanced investors
ā¢ Post-handover plans allow rental income offset: 6% yield (120K annually) partially offsets 200-300K annual post-handover payments
ā¢ Additional costs add 5-7%: DLD (4%), Oqood (1-5K), service charges (15-30/sq ft), agency (2% + VAT)
š DATA SOURCES
Emaar Properties | Damac Properties | Nakheel | Sobha Realty | Dubai Land Department | Property Monitor | Arabian Business | Gulf News
---
š CONTACT PARAG KUNDALWAL | CONSULTAA
Founder & CEO, Consultaa - Dubai Real Estate Consulting & Global Capital Advisory
š LinkedIn: https://www.linkedin.com/in/paragkundalwal/
š Website: https://consultaadxb.com
š§ Email: [email protected]
š± Phone: +971585964631
Dubai Daily airs Monday to Friday at 7:00 AM Dubai time.
Subscribe for your daily dose of Dubai real estate intelligence.