Buying off-plan means purchasing directly from the developer, before or during construction. It is the most common way to invest in Dubai: you enter at a launch price, pay in instalments as the building rises and often reach handover with a property already worth more than you paid. But the right price is not enough: the contract matters just as much.
How a payment plan works
The payment plan is the payment schedule. You usually pay a deposit on signing (often between 10% and 20%), then instalments tied to construction milestones or fixed dates, and the balance on handover. Labels such as 60/40 or 70/30 tell you how much you pay during construction and how much on completion.
Some developers also offer post-handover plans: part of the price is paid after you receive the keys, when the property can already be rented out. It is a useful lever, but always read it together with the overall price.
Escrow: why your money is protected
In Dubai, payments for off-plan units do not go straight to the developer. By law they are paid into an escrow account dedicated to that specific project at an approved bank, and the developer can only draw funds against verified construction progress. It is one of the safeguards that make Dubai so solid for foreign investors.
Costs to budget for
- Dubai Land Department fee: 4% of the price, paid once (sometimes covered by the developer as a promotion)
- Oqood registration, the preliminary registration of an off-plan contract: a few thousand dirhams
- Annual service charges after handover, which vary widely between projects
There is no annual property tax and no capital gains tax in the UAE. If you are tax resident in another country, always check with your own adviser how the property and its income must be declared there.
The checks I run before every signature
- Developer track record: completed projects, delivery times, real quality of finishes
- Project registered with the Dubai Land Department and its escrow account number, both verifiable in the official Dubai REST app
- Handover date and grace period written into the SPA, the sale and purchase agreement
- When resale is allowed: many developers require a minimum percentage paid before issuing the NOC
- Expected service charges and genuine rental demand in the area
Every home I propose is a home I would buy myself. That is why the starting point is not the most advertised launch, but your goal: income, resale before handover, or a home for you.
Want to run the numbers on a real project? Use the ROI and mortgage calculators or book a private call.
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