Buying Off-Plan Property in Dubai: How It Works

The short answer

Buying off-plan in Dubai means buying a home from a developer before it is built and paying for it in stages while it is under construction. Your payments go into a project escrow account controlled by Dubai law, the sale is registered on the Dubai Land Department's interim register (Oqood), and you receive the title deed at handover once the unit is paid in full. The appeal is a lower entry price and a payment plan spread over the build; the trade-off is that you are buying something you cannot yet see, with a completion date that can move.

Off-plan versus ready property

The legal protections, and what each one does

Project registration

A developer may not sell units off-plan until it holds the land and the approvals for the project and the project is registered with the Dubai Land Department (DLD). The Land Department marks the plot's record to show it is under development. Before paying anything, ask for the project's registration details and check them with the Land Department, for example through its Dubai REST app.

Escrow accounts (Law No. 8 of 2007)

Every registered project must have its own escrow account with a bank approved in Dubai, and buyers' payments must be deposited into that account. Money is released to the developer as construction progresses rather than up front. Always pay into the escrow account named in your sale agreement, never into a personal account or a general company account.

The Oqood interim register (Law No. 13 of 2008)

Once the sale and purchase agreement (SPA) is signed and the first payment is made, the sale is registered on Oqood. This records your interest in the unit before a title deed exists. When the project is complete and you have paid in full, the unit is transferred to the main property register and a title deed is issued in your name.

How the purchase works, step by step

1. Choose the project and unit. Compare the developer's delivery record, the payment plan and the service charges you will pay after handover.
2. Reserve the unit. Developers usually take a booking payment, commonly around 10% to 20% of the price depending on the plan.
3. Sign the SPA. Read the completion date, the allowed delay, the specification, the late-payment terms and the resale rules before you sign. A legal review is worth the cost.
4. Register on Oqood. The developer or your broker registers the sale with the Land Department; you receive confirmation in your name.
5. Pay the instalments. Payments usually follow construction milestones and are paid into escrow.
6. Snagging and handover. Inspect the finished unit, list defects for the developer to fix, settle the final payment and receive the keys.
7. Title deed. The Land Department issues the title deed once the unit is paid in full and transferred from the interim register.

Payment plans

Off-plan payment plans are usually split into a booking payment, construction instalments tied to milestones and a final payment at handover. Some developers offer post-handover plans, where part of the price is paid in instalments after you receive the keys. A post-handover plan eases cash flow, but you are still bound by the SPA until the last payment, and the unit is not transferred to your name on the main register until it is paid in full.

Banks lend on completed property more readily than on property under construction, so most buyers pay construction instalments from their own funds and, if they need a mortgage, arrange it for the handover balance. Ask the developer and your bank early how the final payment will be financed.

Fees and costs

• DLD fee: the 4% Dubai Land Department fee applies to off-plan purchases too. Developers usually collect it at booking or at Oqood registration; the SPA should say when.
• Oqood and administration charges: registration and developer administration fees vary by project. Ask for the full list in writing.
• Agency commission: on many new launches the developer pays the broker; on an off-plan resale the buyer usually does.
• Service charges: start at handover and are set per community. Budget for them before you buy.

For a full worked breakdown of ready-property costs, see how much it costs to buy property in Dubai.

Selling before handover

Selling an off-plan unit before completion is called an assignment. Whether and when it is allowed is set by the developer, not by a single citywide rule. Many developers require a minimum share of the price to have been paid, commonly around 30% to 40%, and charge a fee for their no-objection certificate. If you may want to sell before completion, get the developer's assignment rules in writing before you sign.

If a payment is missed

Late payment is the area buyers most often overlook. Under Law No. 13 of 2008 as amended by Law No. 19 of 2017, the developer must notify the Land Department, which gives the buyer 30 days' written notice and may try to settle the matter. If the buyer still has not paid, the developer's options depend on how far construction has progressed:

Any balance owed back to the buyer must be refunded within one year of termination or within 60 days of the unit being resold, whichever comes first. If the Real Estate Regulatory Agency cancels a project, the developer must refund buyers in full.

Checks before you commit

• Confirm the project is registered with the Land Department and note its escrow account.
• Look at the developer's earlier projects: were they delivered close to the promised date and specification?
• Read the SPA's completion date, permitted delay, compensation for delay and late-payment terms.
• Get the payment schedule, all fees and the assignment rules in writing.
• Estimate service charges and, if you plan to let the unit, realistic rents. Our landlord's guide covers Ejari and rent rules.
• If you are buying from abroad, read our guide to buying property in Dubai as a foreigner.

How LMG helps

LMG Properties is a Dubai-based real estate firm offering residential and investment property across Dubai, the UAE and selected international markets, including off-plan and ready homes. The team compares projects and payment plans, sets out the full cost and the contract terms that matter before you commit, and stays with you through handover. See our Dubai and UAE property page and our services.

Questions

What does off-plan mean in Dubai?

Off-plan means buying a property directly from a developer before it is finished, often before construction has started. You sign a sale and purchase agreement, pay in instalments into the project's escrow account while it is built, and receive the title deed once the unit is handed over and paid in full.

Is buying off-plan in Dubai safe?

Dubai law adds several protections. A developer may only sell off-plan once the project is registered with the Dubai Land Department, buyer payments must go into a project escrow account under Law No. 8 of 2007, and each sale is recorded in the Oqood interim register. The main risks that remain are construction delays, a change in market prices before handover and the terms of the individual sale agreement.

What is Oqood?

Oqood is the Dubai Land Department's interim real property register for off-plan sales, set up under Law No. 13 of 2008. Registering a sale on Oqood records the buyer's interest in the unit before the title deed is issued, and it is the record the Land Department uses if the developer later needs to enforce the contract.

Do I pay the 4% DLD fee on an off-plan property?

Yes. The Dubai Land Department's 4% transfer fee applies to off-plan purchases as well as ready ones. Developers usually collect it at booking or when the sale is registered on Oqood, so check the sale agreement for exactly when it falls due.

What happens if I miss an off-plan payment in Dubai?

The developer must notify the Dubai Land Department, which gives the buyer 30 days' written notice to pay. If the buyer still does not pay, Law No. 19 of 2017 lets the developer keep up to 40% of the unit's value if the project is more than 60% complete, or up to 25% if work has started but is below 60%, and refund the rest within one year of termination or within 60 days of reselling the unit, whichever is earlier.

Can I sell an off-plan property before handover?

Often, but it depends on the developer and project. Many developers allow an assignment only after a set share of the price has been paid, commonly around 30% to 40%, and only with their written no-objection certificate and a transfer fee. Get the developer's resale rules in writing before you buy.

What happens if an off-plan project is cancelled?

If the Real Estate Regulatory Agency cancels a project, the developer must return all amounts buyers have paid, in line with the escrow law. This is the main reason payments should only ever go into the project's registered escrow account, never to a personal or general company account.

Legal points summarised from Dubai Law No. 8 of 2007 on escrow accounts, Law No. 13 of 2008 on the interim real property register and its amendment by Law No. 19 of 2017, checked on 2026-10-12. Payment-plan and assignment figures are typical market practice, not legal requirements, and vary by developer. This page is general information, not legal or financial advice.