Let’s face it—real estate in Abu Dhabi is booming. Freehold zones, billion-dirham infrastructure, and government-backed confidence have developers offering tempting Post-Handover Payment Plans (PHPPs) left and right. But not all are golden opportunities. If you’re not careful, they can turn your dream investment into a financial headache. So, before you sign, let’s walk you through what you’re really getting into.

What Are Post-Handover Payment Plans

So, what’s the simple version?

You pay 40% during construction, which is common. Then move in (or rent the unit out) and pay the rest over 4 to 5 years—sometimes more. Sounds like a bargain, right? Well, it can be—but only if you know what you’re doing.

Here’s Why Buyers in Abu Dhabi Are Saying “Yes” to PHPPs

·         Lower Upfront Cost

Instead of paying a huge lump sum or fighting for mortgage approvals, you slide in with a smaller down payment. That means access to more attractive properties—sooner.

·         You Can Earn While You Pay

Once the project is handed over, you take the keys and rent out the unit, which helps cover your remaining instalments. Smart? Absolutely—but only if the numbers add up.

·         Off-Plan = Lower Price Point

Off-plan units tend to come in cheaper than completed ones. And in a rising market like Abu Dhabi’s, that means built-in equity if you play it right.

But hold up—because here’s the part no one tells you in the brochure…

The Real Risks Behind Post-Handover Payment Plans

1.       Handover Delays and Developer Risk

Abu Dhabi is regulated (via DMT and ADREC), yes—but delays can still happen, especially with unreliable developers. The wrong choice can mean postponed handovers, poor construction, or incomplete projects. Want to know your rights? Read our blog on off-plan project delays.

2.       Market Risks

If prices dip—and they sometimes do—you could end up owing more than the property is worth. Now you're stuck, and selling isn’t even an option until the title deed is in your name.

3.       Limited Mortgage Options

Want a mortgage halfway through the plan? Keep in mind that not all banks are open to financing post-handover plans. So, make sure your lender actually supports this model before committing to anything.

How to Make Sure Your Post-Handover Investment is Safe

Here’s the deal, PHPPs aren’t bad. In fact—they are brilliant but only if you do it right.

·         Only work with proven, reputable developers.

·         Get everything in check (payment dates, penalties, and title deed timing).

·         Check with your bank or mortgage broker before you commit.

·         Ask yourself: “Can I cover the payments even if I can’t rent it out?”

·         Bring in a legal expert or a trusted agent to review the agreement.

Because here’s the truth—you don’t want to realise what you’ve signed up for after it’s too late.

Post-handover payment plans aren’t a scam—but they’re not a shortcut to wealth either. They’re a tool. And like any tool, they can help you build or cause serious damage. If you’re buying in Abu Dhabi, go in with your eyes wide open.

Want expert advice before you commit? Call 800-2732 or email enquiries@cromptonpartners.com for a free consultation. You can also access our free guides [HERE]—they cover almost every question you have.