What is off-plan property in Dubai?

Off-plan property is sold by the developer before construction is complete. You buy based on plans, renders, a sales brochure and a show apartment if there is one, and you receive the finished unit at handover.

In Dubai, most new homes are sold this way. Developers use buyer payments, held in escrow, to fund part of construction; buyers get a staged payment schedule and usually a lower price than a comparable finished home in the same area.

1. Choose a unit from the developer’s availability list, ideally with the floor plan, view and floor level confirmed in writing.
2. Pay a booking deposit to reserve it. The amount differs per developer.
3. Sign the sale and purchase agreement (SPA). It sets out the price, payment schedule, unit specification, expected completion date and what happens if either side falls behind.
4. Registration with the Dubai Land Department (DLD). The sale is recorded in the interim register (Oqood), which records you as the buyer before the title deed exists.
5. Pay the instalments as set out in the payment plan.
6. Handover. After completion you inspect the unit (a snagging inspection), pay any remaining balance and fees, and receive the keys. The title deed is issued once the building is registered as complete.

A payment plan splits the price into stages. It is usually written as percentages, such as 60/40: 60% during construction and 40% on handover.

Some plans link instalments to dates, others to construction milestones. A post-handover plan lets you pay part of the price after you receive the keys, often over one to several years. That eases cash flow but you will own a finished unit while still paying the developer, so check the total cost and what happens if you sell before the plan is paid off.

On every project page we show the plan the developer published. Where none is published we say so rather than guess.

Dubai requires developers to sell off-plan units through a project-specific escrow account. Buyer payments go into that account, not into the developer’s general funds, and are released to the developer in line with construction progress. The rules are set by Dubai Law No. 8 of 2007 and overseen by the Real Estate Regulatory Agency (RERA), part of the DLD.

A developer also needs the project registered with RERA before it can sell. Before paying, ask for the RERA project number and the escrow account details, and pay into that account only.

• Entry prices are often lower than for comparable ready homes.
• Payments are spread over the construction period.
• You can choose from the best units early in the sales phase.
• You get a new unit with a developer’s defects warranty.
• Prices may rise between launch and completion. This is not guaranteed and can go the other way.

• Delays. Completion dates in brochures are targets. Check the SPA for the grace period and any compensation.
• Changes to the product. Materials, layouts or amenities can differ from marketing images.
• Market risk. Prices and rents at handover may be lower than at purchase, particularly in areas with many units being completed at the same time.
• Liquidity. Many developers only allow resale after a set share of the price has been paid.
• No income until the unit is finished and let.
• Developer risk. Escrow protects your payments, but a developer’s track record still matters.

Foreign nationals, including non-residents, can buy freehold property in Dubai’s designated freehold areas, which include most communities where new projects are launched. You do not need a residence visa to buy, and you can complete most steps remotely, with the SPA signed digitally or through a power of attorney.

Owning property above certain values can make you eligible for a UAE residence visa. The thresholds and conditions are set by the authorities and change from time to time, so confirm the current rules before relying on this.

• DLD registration fee: 4% of the purchase price, plus a small administration fee. Some developers pay part or all of it as a promotion.
• Oqood registration and developer administration fees.
• Service charges after handover, charged per square foot per year and different for each building.
• Utility connection and deposits (DEWA, cooling where applicable) at handover.
• Mortgage costs if you finance part of the price. Most banks lend on off-plan only near or after completion.

Ask for a written cost breakdown for the specific unit. Fees change, and developer offers differ.

• Completed projects: how many, and were they delivered roughly on time?
• Build quality in finished buildings: visit one if you can, and read owner reviews.
• How well the developer’s finished communities are managed after handover.
• How many projects the developer is building at the same time, relative to its size.
• Whether the project is registered with RERA and has its own escrow account.

• Location: roads, metro, schools and shops that exist today, not only planned ones.
• Supply: how many other units are being completed nearby in the same year.
• Price per square foot compared with similar new and ready buildings in the community.
• Layout and size: net internal area, balcony size, usable layout.
• Payment plan and the total you will have paid before handover.
• Expected service charges and what they cover.

Our project overview lets you compare by community, developer, budget and handover year. The area pages show what else is being built nearby.