If you are working out how to buy off plan property in Dubai, follow these steps: define your investment goal; check the project’s land, approvals, advertising authorisation, completion status and escrow details; review the Sale and Purchase Agreement (SPA), including its payment schedule, handover terms, specifications and resale clause; pay only into the project escrow account; confirm Oqood registration; and plan how to fund the handover payment. If you are buying from abroad, also arrange an appropriately legalised power of attorney (POA) if someone will act for you, and have an independent lawyer review the SPA. At each stage, verify the relevant documents and details rather than relying on a brochure or verbal assurance.
Step-by-step: buying off-plan property in Dubai
- Define your goal and holding period Decide whether the property is intended for personal use, rental income or a possible resale. Set a holding period and work out how much capital you can commit during construction, while keeping funds available for the final payment and other purchase costs. Compare the payment structure and likely ownership period with the alternatives. Our guide to off-plan and ready properties in Dubai can help frame that comparison. Treat projected rent, resale demand and future prices as assumptions to test, not outcomes to rely on.
- Check the project and developer with DLD Before an off-plan sale, the developer must hold the land and obtain the required approvals under Article 4 of Executive Council Resolution No. 6 of 2010. Article 5 of Law No. 8 of 2007 also requires written Dubai Land Department (DLD) authorisation to advertise an off-plan project. Use DLD’s Real Estate Project Status service and Dubai REST to check the recorded completion percentage and the project’s escrow bank and account number. These services do not show the escrow balance, so do not treat the displayed account details as evidence of how much money is held there. Check that the project and unit details in the sales documents correspond with the DLD record. Review the developer’s previous projects and available information on delivery and construction, but assess the specific project and contract rather than assuming past performance guarantees a particular result. For a broader due diligence framework, see our guide to evaluating an off-plan investment.
- Read the SPA before signing Check the contractual payment schedule, handover date, unit specifications and the procedure for changes or delays. Confirm which finishes, appliances, parking arrangements and other features the developer has committed to provide. If a sales representative has described something that matters to you, check that it appears in the contract or its attachments. Pay close attention to the resale clause. A buyer who wants to sell before handover needs a developer’s no-objection certificate (NOC), according to the DLD frequently asked questions. Ask what conditions apply and how the NOC process works before relying on an early resale as an exit plan. Request the instalment dates in the SPA, not just the payment percentages shown in the brochure. If the dates, completion conditions or specifications are unclear, obtain legal advice before signing. An independent lawyer should review the SPA and explain how its terms apply to your circumstances.
- Arrange the purchase from abroad, if needed You can appoint a representative to act for you, subject to the relevant transaction requirements. DLD states that a POA made outside the UAE must be notarised, legalised by the home country’s foreign ministry and the UAE Embassy, and then legalised by the UAE Ministry of Foreign Affairs. DLD also states that a POA for purchase is valid for five years; check the current requirements with the relevant authorities and your lawyer before preparing one, using the DLD guidance on POAs. Make sure the document authorises the specific actions your representative needs to take, and confirm that the developer and relevant transaction channels will accept it. If you are signing or transferring funds remotely, independently verify the documents and payment instructions before proceeding.
- Pay only to the project escrow account Check the escrow bank and account details against the project information and the developer’s formal payment instructions. Send purchase instalments to the project escrow account only. Do not redirect a payment to an agent, an individual or an account that cannot be verified as the project’s escrow account. Keep the SPA, payment notices, transfer confirmations and receipts together. They help you track what is due and provide a record of what you have paid.
- Confirm registration in the interim register The SPA must be registered in Dubai’s interim real estate register within 90 days of signing, according to DLD’s initial sale registration service. Ask for confirmation that the transaction has been registered and check that the unit and buyer details are correct. DLD lists a registration fee of 2% for the seller and 2% for the buyer, plus AED 20. In practice, the buyer commonly pays the combined 4% through the developer; check how the fee is charged and recorded in your transaction documents. See the DLD notice on registration fees alongside its registration service for the applicable process.
- Plan the construction and handover payments Map each instalment against its due date in the SPA and keep funds available according to the contract, not an estimated construction timeline. Before handover, confirm the amount due, arrange any required financing in advance and inspect the unit against the agreed specifications. The Central Bank of the UAE’s mortgage rules cap financing at 50% for an off-plan property and at 60% for an expatriate’s investment property once complete. These are lending limits, not a promise of approval or a particular loan amount; confirm your eligibility and the lender’s valuation and conditions before relying on a mortgage. Since February 2025, banks have stopped financing the DLD fee and agent commission, according to this press report. Budget for these costs separately and confirm the current position with your bank.
Worked example: an off-plan payment timeline
The Everly Place case describes a one-bedroom property priced at AED 2,050,000 on a 20/50/30 payment plan, with handover scheduled for Q4 2030. The figures below use that case and the DLD registration fee basis described above. The SPA should confirm the actual instalment dates and payment triggers.
- Booking: AED 2,050,000 × 20% = AED 410,000. The DLD fee calculation is AED 2,050,000 × 4% = AED 82,000, plus AED 20, giving AED 82,020. Booking payment plus DLD fee: AED 410,000 + AED 82,020 = AED 492,020.
- Construction: AED 2,050,000 × 50% = AED 1,025,000, paid in instalments linked to the developer’s schedule.
- Before the handover instalment: AED 492,020 + AED 1,025,000 = AED 1,517,020 paid cumulatively.
- Handover in Q4 2030: AED 2,050,000 × 30% = AED 615,000, payable from cash or, subject to bank approval, a mortgage. Including this final instalment, scheduled payments and the DLD fee total AED 1,517,020 + AED 615,000 = AED 2,132,020.
The AED 1,517,020 figure is the cumulative amount before the final handover instalment, not the full sum paid through key release. The handover payment remains due before keys are released. See the Everly Place case for the example and review the dates in the SPA rather than relying on the brochure.
What happens if you stop making payments?
Dubai Law No. 19 of 2020 sets out different consequences according to the project’s completion status. After DLD notifies the buyer and allows 30 days to remedy the breach, a developer with a project at least 80% complete may retain amounts already paid and resell the unit, or terminate the contract and retain up to 40% of the unit’s value. If completion is at least 60% but below 80%, the developer may terminate and retain up to 40% of the unit’s value; below 60%, the limit is up to 25%. If construction has not started for reasons beyond the developer’s control and without its negligence, the developer may retain up to 30% of the amounts paid. These rules are set out in Law No. 19 of 2020. The outcome depends on the circumstances and the applicable legal terms, so get independent legal advice if you are at risk of missing a payment.
What foreign buyers get wrong in Dubai off-plan, what each mistake costs, and exactly what to do instead.
Download free→Common mistakes when buying off-plan
- Relying on promotional material alone. Verify the project’s DLD status, approvals, advertising authorisation and escrow details independently.
- Choosing a payment plan without checking dates. A percentage schedule does not show when cash is due. Ask for the instalment dates and triggers in the SPA.
- Assuming a brochure description is contractual. Check that the unit specifications, handover terms and any important commitments appear in the signed documents.
- Sending money to an unverified account. Confirm the project escrow account and pay purchase instalments into it only.
- Forgetting to check Oqood registration. Ask for evidence of interim-register registration and verify that the recorded details are correct.
- Assuming a mortgage will cover every cost. Check your financing eligibility early and budget separately for fees and commission that a bank may not finance.
- Planning to resell without checking the SPA. A developer NOC is needed for resale before handover, so confirm the contractual process and conditions.
- Ignoring missed-payment consequences. Review the default provisions and understand the legal process before committing to an instalment schedule.
- Preparing a POA too late or incorrectly. If you are purchasing from abroad, allow time to complete the required notarisation and legalisation steps, and confirm acceptance in advance.
For further checks, read our guide to buying off-plan in Dubai, review the ten off-plan mistakes guide, and compare another example in the Arancia The Yards case. You can also read about common Dubai property investment mistakes.
Final checks before you commit
Before signing, confirm the project’s DLD record, the escrow account, the SPA terms, the instalment dates and the interim-register process. If you are buying from abroad, verify your POA arrangements; if you expect to use a mortgage, confirm eligibility and funds for costs that may not be financed. This article provides general information, not legal advice. Ask an independent UAE property lawyer to review the SPA before you commit. For advice on a specific purchase, contact M&M Real Estate.
Can I buy an off-plan property in Dubai while living abroad?
You can arrange for a representative to act for you using a POA that meets the required formalities. A POA made outside the UAE needs notarisation and legalisation through the relevant home-country and UAE authorities. Confirm the document’s scope and acceptance before signing or transferring funds.
Can I use a mortgage to pay for an off-plan property?
Mortgage financing is subject to lender approval and the applicable Central Bank limits. The cap is 50% while the property is off-plan; for an expatriate’s investment property once complete, the cap is 60%. Ask the bank to assess your circumstances and confirm any conditions before relying on finance for the handover payment.
Can I sell before the property is handed over?
A resale before handover requires a developer NOC. Check the SPA for any additional conditions and confirm the process with the developer before making plans to sell.
