How to Buy Off-Plan Property in Dubai: Process, Costs & Legal Steps
Buying an off-plan property in Dubai is one of the most popular ways investors enter the market. It offers lower entry prices, flexible payment plans, and strong upside potential. That said, off-plan buying is regulated, structured, and procedural. If you don’t understand the process, you expose yourself to unnecessary risk.
In this guide, I’ll walk you through the exact off-plan property buying process in Dubai, based on current laws, Dubai Land Department (DLD) regulations, and what I execute for clients on the ground.
What Is an Off-Plan Property in Dubai?
An off-plan property is a unit purchased directly from a developer before construction is completed. You are buying based on master plans, floor layouts, and developer commitments rather than a finished asset.
Dubai strictly regulates off-plan sales through:
- Dubai Land Department (DLD)
- RERA (Real Estate Regulatory Agency)
- Mandatory escrow accounts
This regulatory framework is what makes Dubai one of the safest off-plan markets globally.
Who Can Buy Off-Plan Property in Dubai?
Dubai allows:
- Foreign nationals
- Non-residents
- UAE residents
- Companies and SPVs
You do not need UAE residency to buy off-plan property. Ownership rights depend on whether the project is located in a designated freehold area, which most major developments are. I dive deeper on this in my guide: can foreigners buy property in dubai?
Step-by-Step Process to Buy Off-Plan Property in Dubai
Step 1: Choose a RERA-Approved Developer & Project
This is the most important step.
I only recommend projects that meet all of the following:
- Developer is RERA-registered
- Project is DLD-approved
- Escrow account is active
- Clear construction timeline and payment milestones
Never commit funds without verifying escrow registration. This is non-negotiable.
Step 2: Reserve the Unit
Once the unit is selected, you’ll pay a reservation fee, typically:
- Reservation Fee: 5% – 10% of property value
- Booking Form: Signed with unit details
- Passport Copy: Required
The unit is temporarily blocked while contracts are prepared.
Step 3: Sign the SPA (Sales & Purchase Agreement)
The SPA is the legal backbone of an off-plan purchase.
It outlines:
- Total purchase price
- Payment plan structure
- Construction milestones
- Completion timeline
- Penalties for delays
- Handover conditions
- Resale and assignment rules
I always review SPAs line-by-line with clients. Developers’ terms vary, and not all clauses are investor-friendly.
Step 4: Make the Initial Down Payment
After signing the SPA, you’ll pay the initial down payment. In most off-plan projects in Dubai, this is typically 10%–20% of the property value, regardless of whether you are a resident, non-resident, or cash buyer.
All payments are made directly into the developer’s DLD-approved escrow account, not the developer’s operating account. This escrow mechanism is a critical investor protection measure and ensures funds are released only in line with construction progress approved by the Dubai Land Department.
Step 5: Oqood Registration (Critical Legal Step)
Once the SPA is executed and the initial payment is made, the property is registered under Oqood, Dubai’s off-plan ownership system.
What Oqood does:
- Registers your ownership interest with DLD
- Legally protects your rights as a buyer
- Enables resale before completion (subject to conditions)
Without Oqood, your position is weaker. I ensure with my clients that this is completed early.
Step 6: Pay Installments Linked to Construction Milestones
Off-plan payment plans in Dubai are milestone-based, not time-based.
Common structures:
40% during construction
60% on or post handover
Example:
| Milestone | Payment % |
|---|---|
| Booking | 10% |
| 20% Construction | 10% |
| 40% Construction | 10% |
| 60% Construction | 10% |
| On Completion | 60% |
Payments are monitored by DLD through escrow compliance.
Step 7: Construction Monitoring & Developer Compliance
During construction, I advise clients to:
- Track milestone certifications
- Confirm DLD progress approvals
- Avoid early or unofficial payment requests
Developers can only withdraw escrow funds after DLD-approved progress verification.
Step 8: Handover Notice & Final Payment
Once construction is completed, the developer issues a handover notice.
At this stage:
- Final payment is made
- Snagging inspection is conducted
- Defects (if any) are documented
- Service charges are disclosed
You should never skip snagging. It protects your post-handover position.
Step 9: Title Deed Issuance
After handover and final settlement:
- Property is registered with DLD
- Title deed is issued in your name
- Oqood converts into full ownership registration
At this point, the property becomes:
- Rentable
- Mortgage-eligible
- Resalable without off-plan restrictions
Costs Involved in Buying Off-Plan Property in Dubai
Plan for these additional costs:
Cost Type Typical Amount DLD Fee 4% of property value Oqood Registration ~2% (often included by developer) Admin Fees AED 2,000–5,000 Service Charges Disclosed at handover Agent Fee (if applicable) ~2% Some developers absorb DLD or admin fees as incentives. Always confirm in writing.
Can You Sell an Off-Plan Property Before Completion?
Yes, but conditions apply:
- Minimum % paid (usually 30%–40%)
- Oqood must be registered
- Developer NOC required
- Transfer fees apply
This is known as assignment resale, not a traditional sale. Read more on this in my guide: Selling an off-plan property in Dubai before completion.
Golden Visa Eligibility Through Off-Plan Property
Off-plan properties can qualify for the UAE Golden Visa, provided:
- Property value is AED 2 million or more. Read my dedicated guide to obtaining Dubai’s Golden Visa through property invetsments.
- Payment milestones meet eligibility thresholds
- Project and developer are approved
This must be structured carefully. Not all off-plan purchases qualify immediately.
Risks to Watch When Buying Off-Plan in Dubai
Common mistakes I see:
- Buying from unregistered developers
- Ignoring escrow verification
- Overestimating short-term flipping potential
- Not understanding SPA penalty clauses
- Underestimating service charges
Off-plan is safe only when done correctly.
My Professional Guidance
When structured properly, off-plan buying in Dubai offers:
- Lower entry prices
- Capital appreciation during construction
- Flexible payment plans
- Strong rental demand at handover
I guide clients through:
- Project selection
- Developer due diligence
- SPA review
- Escrow verification
- Exit strategy planning
Off-plan is not speculative when approached with discipline and legal clarity. Need help navigating Dubai’s exclusive off-market real estate investments? Get in touch today!
Final Thoughts
Dubai’s off-plan property framework is among the most regulated in the world. The system works, but only for buyers who respect the process.
If you understand the steps, comply with regulations, and align the purchase with a long-term strategy, off-plan property can be a powerful wealth-building tool in Dubai’s real estate market.
Disclaimer: This article is for informational purposes and does not constitute legal advice. Regulations and developer policies may change. Always verify project-specific requirements before committing funds.