Before You Buy an Off-Plan Property in Dubai: 7 Things You Need to Check

Buying an off-plan property in Dubai can mean a lower price, a flexible payment plan and strong capital growth. But you're paying for something that isn't built yet. Make these seven checks before you pay a booking amount

1. The Developer's Track Record

Make sure the developer is registered with DLD and RERA (check the Dubai REST app). Then look at their history: past projects, on-time delivery and build quality. Visit one of their finished buildings if you can.

2. Project Registration and Escrow Account
By law, off-plan payments must go into a project escrow account. Confirm the project is registered with DLD and that the escrow account is in the project's name.
Red flag: being asked to pay into a personal or agent's account.

3. The Real Total Cost
The brochure price isn't the full cost. Budget for:

• Down payment (usually 10%–20%)
• 4% DLD Oqood registration fee plus admin fees
• Construction-linked installments
• Handover payment (often 20%–60%)
• Service charges after handover
• Make sure you can afford the handover payment, even if you'll need a mortgage for it.

4. The SPA (Sales and Purchase Agreement)

• Read these clauses carefully:
• Completion date and grace period
• Compensation for delay
• Allowed size variance
• Default and termination terms
• Resale rules
• For a large purchase, a lawyer's review is worth the cost.

5. Location and Future Supply
Check access to the metro, main roads, schools and shops. Also check how many new units are due in the same area, because a wave of new supply can push rents down.

6. Service Charges and Net Yield
Service charges can cut your rental return a lot. Look up rates for similar buildings in the DLD Service Charge Index and work out your net yield, not just the gross figure.

7. Your Exit Plan
Most developers only allow resale after you've paid 30%–40% of the price, and they charge a NOC fee. Know these rules before you buy.

Frequently Asked Questions

• Is it safe to buy off-plan property in Dubai?
• Escrow laws and RERA oversight make it much safer than before, but the developer and your contract still matter.

What is the DLD fee for off-plan property?
4% of the purchase price, plus admin fees, paid for Oqood registration.

Can foreigners buy off-plan in Dubai?
Yes, in designated freehold areas.

Disclaimer: General information only, not legal or financial advice. Confirm current rules with the Dubai Land Department.