Off-plan or ready property in Dubai: which should you buy?
Buy a ready home if you need to live in it, let it or hold a title deed soon; buy off-plan only if you can wait for handover and fund every instalment without counting on a resale or a future loan. Off-plan payments must go into the project's escrow account under Law No. 8 of 2007, and Central Bank rules cap off-plan loans lower. Check the unit in the DLD Property Status Enquiry and, for off-plan, the project's progress in the DLD Project Status Enquiry.
Steps
Decide when you need the home
Who: You
Documents:
- Your moving, rental or residency dates
A ready home can be lived in or let from the day of transfer. An off-plan home earns nothing and cannot be lived in until handover, and service charges become payable from the date your contract sets. If you need the home, rental income or a residence permit within a short window, a ready home is usually the plainer answer.
Plan how you will pay
Who: You, with your bank
Documents:
- Bank pre-approval or proof of funds
- The developer's dated payment schedule (off-plan)
Central Bank rules cap loans to expatriates at 80% of the value for a first home worth less than AED 5,000,000, and at 50% for off-plan homes, and individual banks may lend less. For off-plan, write down every instalment and the handover payment with its date, and name where each payment will come from.
Check the unit and, for off-plan, the project
Who: You, with your agent
Documents:
- Title deed, land or Oqood number of the unit
- Project name and developer
Run the unit through the DLD Property Status Enquiry to confirm it can be sold to you. For off-plan, look the project up in the DLD Project Status Enquiry and note its completion percentage, then follow our developer and project checklist.
Pay only into the right account
Who: You
Documents:
- Developer's written escrow account details
- Payment instructions from the developer
Under Law No. 8 of 2007, off-plan payments go into an escrow account opened in the project's name with a DLD-accredited agent, the money is for building that project, and the developer's creditors cannot attach it. Before paying, ask the developer for the project's escrow account in writing, check that your agreement names the same account, and confirm with the escrow bank that it is the project's account. For a ready home, the price is paid at transfer through the DLD trustee office.
Sign and register the sale
Who: You, the seller or developer, and the DLD
Documents:
- Sale and purchase agreement (off-plan) or Form F (resale)
- Passport
Oqood registration of an off-plan sale is listed by the DLD as 2% of the sale value from the purchaser and 2% from the seller, and the contract must be registered within 90 days of signing. The DLD transfer fee is 4% of the price in total, listed by the DLD as 2% from the buyer and 2% from the seller; check who pays in your contract.
Take handover and keep your rights
Who: You, with the developer
Documents:
- Handover notice
- Snagging list
Under Law No. 6 of 2019, the developer remains liable for structural defects for 10 years from the completion certificate and for defective installations for 1 year from handover of your unit; other legislation may add rights. Inspect before you take the keys; our handover and snagging guide lists what to check.
Costs and fees
| Cost | Amount |
|---|---|
| DLD transfer fee on a ready home, total (listed as buyer and seller shares below) | 4% |
| DLD transfer fee, buyer share as listed by the DLD | 2% |
| DLD transfer fee, seller share as listed by the DLD | 2% |
| Oqood registration of an off-plan sale, purchaser share as listed by the DLD | 2% |
| Oqood registration of an off-plan sale, seller share as listed by the DLD | 2% |
Source: dlp.dubai.gov.ae, dubailand.gov.ae. Data as of .
Off-plan and ready compared
| Factor | Off-plan | Ready (resale) |
|---|---|---|
| When you get the home | At handover, after construction | At transfer |
| How you pay | Instalments into the project escrow account | Mostly in one sum at transfer, through the trustee office |
| DLD registration | Oqood: 2% purchaser and 2% seller listed | Transfer fee 4% in total, listed as 2% buyer and 2% seller |
| Central Bank loan-to-value cap for expatriates | Up to 50% | Up to 80% for a first home worth less than AED 5,000,000 |
| Rental income | None until handover | Possible from transfer |
| Taskeen residence permit (2 years) | Needs a title deed, so usually after handover | Open to owners who meet the DLD conditions |
| Golden Visa (property worth AED 2,000,000 or more) | Allowed for off-plan homes from approved developers | Allowed |
| Defects cover (under Law No. 6 of 2019; other legislation may add rights) | Installations 1 year from handover; structure 10 years from the completion certificate | The same periods, which may have partly or fully run on an older building |
Sources: Dubai Legislation Portal; DLD service pages; Central Bank of the UAE Rulebook; ICP; DLD Taskeen service page. Data as of .
If an off-plan buyer stops paying
| Project completion, as assessed by RERA | What the developer may do |
|---|---|
| Over 80% | Keep the contract and claim the balance, ask the DLD to auction the unit, or terminate and keep up to 40% of the unit value |
| 60% to 80% | Terminate and keep up to 40% of the unit value |
| Under 60%, with works started | Terminate and keep up to 25% of the unit value |
| Works not started for reasons beyond the developer's control, or project cancelled | Refund all payments under the escrow law |
Source: Law No. 19 of 2020, amending Law No. 13 of 2008, Dubai Legislation Portal. Data as of .
Deadlines and protection periods
| Stage | Time |
|---|---|
| Register the off-plan sale in Oqood after signing | 90 days |
| DLD notice to an off-plan buyer in default before the developer may act | 30 days |
| Developer liability for defective installations, from handover of your unit | 1 year |
| Developer liability for structural defects, from the completion certificate | 10 years |
| Escrow retention (5% of the account) held after the completion certificate, from registration of units in buyers' names | 1 year |
Figures as of ; sources: dubailand.gov.ae, dlp.dubai.gov.ae.
Documents checklist
- Passport
- Title deed or Oqood number of the unit
- DLD Project Status Enquiry result and the developer's written escrow account details (off-plan)
- Dated payment schedule and sale and purchase agreement (off-plan) or Form F (resale)
- Bank pre-approval, if you are borrowing
Common mistakes
- Treating a payment-plan split as a schedule: ask for dated amounts.
- Assuming you can resell or refinance before the handover payment falls due.
- Paying a booking amount to an account that is not the project's escrow account.
- Planning a residence permit that needs a title deed while the home is still off-plan.
- Leaving service charges out of the budget: they become payable from the date your contract sets.
Frequently asked questions
Is off-plan property safe in Dubai?
Off-plan buyers have legal protections, but not a guarantee of delivery. Payments must go into a project escrow account under Law No. 8 of 2007, sales must be registered in Oqood, and a developer cannot cancel for non-payment without a DLD notice and the completion-based rules in Law No. 19 of 2020. Check the project's progress with the DLD and confirm the escrow account before paying.
What happens if I can't pay an off-plan instalment?
The DLD first gives you 30 days written notice and may mediate a settlement. After that, what the developer may do depends on the project's completion: above 80%, keep the contract and claim the balance, ask the DLD to auction the unit, or terminate and keep up to 40% of the unit value; from 60% to 80%, terminate and keep up to 40%; below 60%, once works have started, terminate and keep up to 25%. Any excess must be refunded within 1 year of termination or within 60 days of a resale, whichever is earlier, and you keep the right to go to court or arbitration.
Can I get a mortgage on an off-plan property?
Yes, but Central Bank rules cap it at 50% of the value, below the cap on a ready first home, and many buyers fund off-plan instalments themselves until handover. Ask your bank which projects and stages it lends on.
Can I get a Golden Visa with an off-plan property?
Yes: the ICP allows off-plan property from approved developers to count towards the AED 2,000,000 threshold. Confirm the current conditions with the ICP or the DLD before you rely on it.
Is ready property better for rental income?
A ready home can be let from transfer, while an off-plan home earns nothing until handover. Whether either earns a good return depends on the price, the rent, service charges and vacancy, and we do not forecast returns.