Considering to purchase off-plan property in Dubai? You’re not alone. Off-plan houses have become the favourite of first-time home buyers, residents who intend to act in the future and investors who prefer to pay flexibly rather than pay a bulky upfront price.
To put it in the simplest terms, off-plan refers to purchasing a property before its completion. The appeal is clear: lower starting prices, long payment plans, and the chance that the property’s value increases before handover. However, it is not identical to purchasing an already furnished house. The schedules, cash flow and risks are not the same, and thus one should have clear expectations when entering.
The off-plan market in Dubai has increased rapidly. Arada Research showed that over 160,000 new units were introduced last year alone. Such a high degree of choice is excellent to the buyers yet it comes at the cost of having to look beyond the prices and look at the developer, location, and long term value.
Why Off-Plan Properties Attract Buyers
Affordability is one of the largest motivating factors that buyers opt off plan. Developers usually offer prices that are lower than completed units, along with payment plans spread over several years. This makes it easier to enter the market without paying the full amount upfront.
Another advantage is capital growth. If the project is in a strong location and the market performs well, the property’s value may rise by the time it’s handed over. For investors, that potential upside is a major draw.
That said, patience is part of the deal. Construction takes time, and handover dates can shift. Buyers need to be comfortable waiting and managing payments during the build phase.
Buying an Off-Plan Upfront Costs You Must Plan For
Every off-plan purchase in Dubai comes with a fixed cost that cannot be avoided. The Dubai Land Department charges a 4% registration fee based on the property value. This is usually paid when you sign the Sales and Purchase Agreement and is often combined with the down payment.
Amany Rajab, Senior Research Manager at Arada, advises buyers to include this fee in their budget from day one. It’s not an extra surprise cost, but it can catch buyers off guard if they only focus on the property price.
There may also be smaller fees depending on the project. According to Eddy Nemri, Vice President of Sales at Object 1, buyers should expect trustee or administrative charges, usually ranging from around Dh580 to Dh4,000. Off-plan properties also require Oqood registration, which is often included in the developer’s fees but may sometimes be listed separately.
Do You Need a Mortgage Approval at the Start?
In most cases, no. Off-plan purchases usually begin without bank involvement. The early stages focus on booking fees and construction payments made directly to the developer.
Mortgage pre-approval only becomes necessary if you plan to finance part of the purchase through a bank. This usually happens closer to completion. Nemri explains that mortgage pre-approval typically takes between three and seven working days and is valid for about two to three months.
Many buyers choose to reserve a unit early and arrange financing later. This can work well, but it assumes your income, job status, and credit profile remain stable until handover.
How Payment Plans Affect Affordability
Payment plans matter more than the listed price. A well-structured plan can make a property feel far more affordable over time.
According to Rajab, the most popular options in today’s market are 50/50 and 60/40 plans. This means buyers pay the majority during construction, with the remaining balance due at handover. These plans reduce the amount needed at completion and give developers stronger cash flow during the build phase.
Post handover plans where buyers make further payments after acquiring the keys are on the decline. The high volume of sales and demand has also made developers more confident hence they are no longer required to provide extended incentives.
Buying an Off-Plan Key Points to Consider Before Committing
You can be really smart when it comes to buying off-plan in Dubai as long as you are aware of the procedure and you budget accordingly. Look beyond the price tag. Research the track record of the developer, examine the payment scheme, and make sure that you are realistic with the timelines.
Due diligence is more than ever with the large number of projects available on the market. Formed correctly, an off-plan purchase can be a versatile and enriching system to be a proprietor of the property in Dubai.
