How does buying off-plan work in Dubai?
The buyer reserves a unit in a project that is not yet built or under construction, from a registered developer. Payments follow a schedule set in the contract (deposit, then instalments linked to construction progress or to dates, and the balance on handover). The payments go into an escrow account dedicated to the project. The sale is recorded with the Dubai Land Department in a provisional register called Oqood, and the final title deed is issued on handover.
- Reservation with the developer, with a deposit.
- Sale and Purchase Agreement, setting the price, the payment schedule and the expected handover date.
- Oqood registration with the Dubai Land Department: the sale is entered in the provisional register.
- Staged payments into the project's escrow account.
- Handover, payment of the balance, then issue of the final title deed.
What are the risks of buying off-plan in Dubai?
The main risks are late delivery, or even a stalled project, a unit that differs from what was presented, a value at handover below the price paid if the market turns, difficulty reselling before handover, and currency risk for investors whose currency is not the dirham. The escrow account reduces some of these risks, but does not remove them.
| Risk | What can happen | How to limit it |
|---|---|---|
| Delay or stalled project | Handover pushed back by months or years; in serious cases, project cancelled | Experienced developer, delivery track record, actual site progress |
| Differences from the plans | Size, finishes or view differ from the brochure | Read the contract (area tolerances, change clauses) |
| Market | Price at handover below purchase price, heavy new supply in the area | Compare with actual resale prices in the area, not just launch prices |
| Resale before handover | Not allowed until a certain percentage is paid, or resale at a loss | Check the assignment conditions in the contract |
| Liquidity | Capital tied up until handover, sometimes longer | Only invest money you can spare for the whole period |
| Currency | The dirham is pegged to the US dollar: a euro-based investor is exposed to euro-dollar moves | Factor currency into the calculation |
| Rental yield | Rents and service charges differ from projections | Think in net yield, after charges and vacancy |
What is an escrow account and how does it protect the buyer?
Since Dubai Law No. 8 of 2007, a developer selling off-plan must open an escrow account for each project with an approved institution. Buyers' payments are deposited there and can only be used for the construction of that project. The developer's creditors cannot seize them.
The law provides further safeguards: the developer must be listed in the Dubai Land Department register, the escrow agent reports on money in and out, and 5% of the account is retained for one year after the units are registered. If a project runs into serious difficulty, the escrow agent must protect buyers' rights: completion of the project or refund.
Limits to keep in mind: escrow protects against misuse of funds, not against delays, design errors or a market downturn. Always check that your payments go to the project escrow account named in the contract, never to another account.
How do you check a developer's reliability in Dubai?
Check that the developer and the project are registered with the Dubai Land Department, that the project has an escrow account, look at the official construction progress, and review the developer's history: projects delivered, deadlines met, quality of buildings already occupied.
- Registration. The Dubai Land Department lets you check a project's registration and progress, notably through its online services and official app.
- Track record. Visit buildings the developer has already delivered: finishes, maintenance, occupancy.
- Contract. Have the contract reviewed: handover date, late-delivery penalties, area tolerances, resale conditions.
- Intermediary. Use a real estate agency registered with RERA, Dubai's Real Estate Regulatory Agency, and check its registration number. At Groupe OPERA, transactions in Dubai are carried out with a partner broker registered with RERA and holding the professional card.
Can you resell an off-plan property before handover?
Yes, it is possible and common in Dubai, but subject to conditions. The developer often requires a minimum percentage of the price to have been paid and issues a no-objection certificate (NOC), for a fee. The resale is registered with the Dubai Land Department. There is no guarantee of selling above the purchase price.
The minimum percentage paid and the transfer fees vary between developers and contracts. Reselling before handover is sometimes presented as a quick gain: in a slowing market, it can instead mean selling at a loss, or not finding a buyer.
What are the costs of buying property in Dubai?
The main cost is the Dubai Land Department registration fee, equal to 4% of the price. The official schedule splits it between seller and buyer (2% each), but in practice the buyer often pays the full 4%. On top come administrative fees, registration trustee fees, any agency commission and, when buying with a mortgage, mortgage registration fees.
| Item | Indicative amount |
|---|---|
| DLD registration fee | 4% of the sale price (official schedule: 2% seller + 2% buyer) |
| DLD administrative fees | A few hundred dirhams (certificate, map, service fees) |
| Registration trustee | AED 2,000 + VAT below AED 500,000, AED 4,000 + VAT above (resale) |
| Agency commission | Usually 2% on the resale market, often included on new builds |
| Annual service charges | Vary by building (per square foot) |
Dubai Land Department fee schedules as of 28 September 2026, subject to change. Always check the exact amount at the time of the transaction.
Can a foreigner buy freehold property in Dubai?
Yes, in so-called freehold areas, designated by Regulation No. 3 of 2006 and its updates. Foreigners, whether or not they live in the UAE, can acquire full ownership there, with a title deed issued by the Dubai Land Department.
Most of the areas sought after by international investors are freehold. Still, check the exact status of the land in the contract and with the Dubai Land Department.
Off-plan or resale: what is Groupe OPERA's approach?
Groupe OPERA advises on both off-plan and resale purchases, case by case, studying the developer, the street and the building before talking about yield, and always in net terms. Its Dubai club deals, however, focus solely on the resale market: villas that are renovated and then sold. Transactions are carried out with a partner broker registered with RERA.
Off-plan suits a patient investor who accepts capital tied up until handover and the risk of delay. The resale market offers an existing property you can see and let immediately, with other risks (condition, works, purchase price). The choice depends on your horizon, your need for income and your risk tolerance.