Off-plan property purchase in Dubai is the purchase of a property that has not been constructed. The investment scheme provides convenient pay schemes and discounts. This is how one can go through the off-plan buying process in Dubai efficiently and safely.
What Is Buying Off-Plan Property in Dubai?
Off-plan real estate in Dubai is a direct purchase by the developer prior to the construction of the premises.
Subject: Buyer
Predicate: purchases
Value: property that is under-constructed at a reduced price.
The developers, such as Emaar, Damac, and Nakheel, provide such projects to appeal to investors early. The advantages realized by buyers include reduced prices and appreciation of capital through handover.
Buying Off-Plan Property in Dubai: A Step-by-Step Guide
The off-plan buying in Dubai city is categorized into a number of controlled phases, which are regulated by the Dubai Land Department (DLD).
| Step | Action | Key Requirement |
|---|---|---|
| 1 | Research developers | Signator develops a Sales Purchase Agreement. |
| 2 | Choose project | Check location, facilities, cost/ sq. ft. |
| 3 | Reserve unit | Sign the reservation form, pay the reservation fee (5-10%) |
| 4 | Sign SPA | Register sale under the Oqood system. |
| 5 | Register Oqood | Pay installments, depending on the progress of construction. |
| 6 | Adhere to payment plan | Receive the property title deed on completion. |
| 7 | Handover | Adhere to the payment plan |
Transparency and buyer safeguarding are ensured by this process through the RERA and DLD escrow system.
In Dubai, How Much Deposit Is Needed to Purchase Off Plan?
The booking deposit normally ranges between 5 and 20 percent upon depending on the level of the project.
RERA requires that all payments by buyers be through escrow accounts, which means that the money can only be released as the project advances.
Example:
- Emaar: 10 per cent booking, 60 per cent during construction, 30 per cent on handover.
- Damac: 20% booking, 40% during building, 40% after handover.
Are Foreigners allowed to purchase off-plan property in Dubai?
Yes. Foreign investors are allowed to purchase off-plan property in Dubai in the designated freehold zones, including:
- Downtown Dubai
- Business Bay
- Dubai Marina
- Jumeirah Village Circle (JVC)
- Dubai Hills Estate
They have to bring a valid passport and sign a Sales Purchase Agreement (SPA) by the foreign buyers.
The ownership rights are shielded by the Law No. 7 of 2006 (Dubai Real Estate Law).
What Are the Off-Plan Rates of Properties in Dubai?
Most developers are providing flexible payment plans or off-plan to attract customer investments.
Typical compensation plans are:
- 60/40 plan: 60 per cent at construction, 40 per cent handed over.
- 70/30 plan: 70 at the time of completion, 30 at the time of completion.
- Post-handover plans: Within 2-5 years of delivery.
The payment programs are attached to the milestones in construction, which will guarantee the security of the investors.
Read More: Sell Your Off-Plan Apartment or Villa in Dubai: Legal and Profit Guide
How do you do the Off-Plan Registration in Dubai?
According to the DLD rules, off-plan registration is a mandatory feature.
- Buyers activate their property through the Oqood system (off-plan registration portal).
- The registration fee is an amount of 4 percent of the property price, which is paid to DLD.
- Upon registration, buyers are given an Oqood Certificate and ownership rights, under the construction is confirmed.
Is it a Good Investment To Buy Off-Plan property in Dubai?
Yes, off-plan investing in Dubai is a good long-term investment because of:
- Favourable entry prices in comparison to ready properties.
- Elevated capital gain when carrying out the projects.
- Adjustable installment plans.
- Mortgage stress exemption on construction.
Example Data:
The data provided by Bayut 2025 indicates that off-plan properties bring in a higher ROI, 15-25 percent, at handover than the initial cost of purchase.
Benefits of Off-Plan Property Purchase in Dubai
| Advantage | Description |
|---|---|
| Early Price Entry | Buy early before the market goes up. |
| Payment Flexibility | Pay in 2-5 years. |
| Modern Design | New layouts and technologies accessible. |
| Very high ROI | 15-25% estimated ROI at exit. |
| Government Protection | RERA and DLD escrow laws are a guarantee of security. |
An Off-Plan Investment: Its Risks and Mitigation
| Risk | Mitigation Strategy |
|---|---|
| Delay of the project | Select developers registered by RERA. |
| Fluctuation of the market | Attention to prime locations. |
| Overpayment | Compare per sq. ft. prices |
| Undisclosed expenses | Read Review SPA thoroughly and then sign. |
The DLD Rest App allows investors to reduce the risk of investing, as developers are verified through the app, and escrows are reviewed.
Frequently Asked Questions (FAQs)
How do we purchase off-plan real estate in Dubai?
To buy a house, among other processes, buyers choose a developer who has been approved by RERA, settle on a unit, sign an SPA, enroll with Oqood, and make payments as per the agreed terms till the handover.
How many deposits are needed to purchase on-plan in Dubai?
Usually, the deposit to be made at the time of booking is 5-20 percent, depending on the project and developer.
Are there possibilities of buying off-plan properties in Dubai by foreigners?
Yes, foreigners are allowed to invest in off-plan real estate in Dubai in licensed freehold areas and enjoy the full ownership rights.
How do off-plan Dubai properties get paid?
The developers provide well-organized schemes like 60/40, 70/30, or post-handover payments for a number of years.
Is purchasing an off-plan property in Dubai worth investing in?
Yes, because of flexible payments, government protection, and good ROI possibilities due to early entry price.
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