For an investor asking how to evaluate an off-plan project in Dubai, start with the developer’s delivery record, the location, the payment schedule, the full purchase costs and a clear exit plan. The Dubai Land Department (DLD) transfer fee is 4% of the sale price, and buyers usually budget for the full fee (Executive Council Resolution No. 30 of 2013; DLD e-services, Oct 2026).
Start with the investment purpose
Decide what the property needs to do for your portfolio. A buyer focused on rental income will assess likely tenants, rent levels and ongoing costs. A buyer planning to sell near handover will pay closer attention to entry price, resale demand and the contract terms for transferring the property.
Set your budget and holding period before comparing projects. Include the cash needed during construction, at handover and after completion. If your plan depends on rent, estimate income after service charges, management costs, maintenance and any periods without a tenant.
Keep the intended exit in view as you assess each feature. A large apartment may suit a family tenant, while a smaller unit may appeal to a different renter or buyer. Compare the unit type with the people likely to live in or buy it.
Check the developer’s delivery record
The developer controls construction, the payment schedule and the handover process. Review its completed projects, the quality of past finishes and whether buyers received their units close to the stated completion dates. Look for evidence of delivery, not only launch material or visual renders.
Check which company is named as the developer in the contract. Confirm the project’s registration and the status of its approvals with the relevant Dubai authorities. M&M’s developer information can help you begin that review, alongside official records and the documents supplied for the project.
Ask who is responsible for construction and whether the project depends on infrastructure or facilities that are still planned. A delay to a connecting road, community facility or neighbouring development can affect how soon the property suits tenants or end users. Separate what is already in place from what is promised for later.
Consider the developer’s wider delivery record alongside the specific project. A company’s completed buildings give useful context, while the project contract, construction progress and escrow arrangements relate directly to the property under review.
Assess the location and likely demand
Start with the neighbourhood’s current access to workplaces, schools, shops, transport and other services that matter to likely residents. Then check planned infrastructure against official announcements. A proposed station or road can support a location’s appeal, but it does not replace the daily journey times and facilities that exist today.
Compare the project with completed homes nearby. Check sale prices, rents, unit sizes and the supply of similar properties. A launch price may look attractive in isolation, so compare like with like, including the view, floor, layout, finish and building facilities.
Consider who might rent or buy the property when it is ready. A project aimed at a narrow group of buyers may have fewer potential tenants or purchasers. That can make the exit slower if several similar units come to market at the same time.
M&M’s location guides offer a starting point for comparing Dubai areas. Visit the site where practical, or ask an advisor to confirm what is already built around it and what remains planned.
What foreign buyers get wrong in Dubai off-plan, what each mistake costs, and exactly what to do instead.
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Review the floor plan, internal area, balcony, orientation, storage and position within the building. Ask for the exact unit details in writing. Renderings can help explain the design, while the sale and purchase agreement (SPA) and approved plans set out the property being sold.
Check the specification against the price. Confirm which finishes, appliances and facilities are included, and ask whether the developer can change them under the contract. Find out how the building’s service charges are set. Service charges are the recurring costs for maintaining shared areas and facilities, and they reduce the income left after rent is received.
Build a full cost schedule before you reserve. Include the purchase price, the DLD fee, registration and trustee costs where applicable, any mortgage charges, and the costs of furnishing and letting the property. Ask the developer which charges are due at each stage and confirm fees with the relevant authority or service provider.
For a buyer paying AED 2,000,000, the DLD fee is AED 2,000,000 × 4% = AED 80,000 (Executive Council Resolution No. 30 of 2013; DLD e-services, Oct 2026). The law divides the fee equally between buyer and seller, while the buyer usually pays it in full in practice. Add it to the purchase budget from the outset.
Read the payment plan and check your cash position
Write down every instalment, its due date and the event that triggers payment. A construction-linked payment plan ties instalments to progress milestones. Check how the developer confirms each milestone and whether the amounts fit your cash position throughout the build.
Some developers offer post-handover payment plans, which let the buyer pay part of the price after the property is handed over. Review the length of the plan, each payment date and any conditions attached. Treat post-handover instalments as a debt to fund, even if rent is expected to contribute.
Do not assume a bank will fund a large share of an off-plan purchase. Central Bank of the UAE mortgage rules, verified Oct 2026, cap mortgage lending on off-plan property at 50% of its value. A buyer who needs financing therefore plans for the remaining amount from cash or the developer’s payment schedule, subject to the bank’s assessment.
Test the plan against a delay. If handover moves, the buyer may need to keep funding instalments for longer before rental income begins. Check what the SPA says about completion dates, notices and remedies, and keep enough liquidity to meet payments if your original timing changes.
Understand escrow and the contract protections
Dubai’s escrow system holds buyer payments in a project account. Under Dubai Law No. 8 of 2007, funds are released for project construction in line with the legal framework. Confirm the project’s escrow details and follow the payment instructions in the signed documents. Pay only to the account stated in the official paperwork.
The law also provides for 5% of the escrow amount to be retained for one year after units are registered to buyers (Dubai Law No. 8 of 2007, Article 14; verified Oct 2026). This retention provides a period for addressing defects after registration. It does not remove the need to inspect the unit and record any issues at handover.
Read the SPA for the unit description, payment terms, completion provisions, permitted changes, default clauses and the process for raising a dispute. Oqood is the DLD’s registration for an off-plan purchase. Check that the purchase is registered as required and keep copies of the registration and payment records.
Dubai Law No. 19 of 2020 sets out protections relating to off-plan projects. Understand the remedies stated in the law and your contract if the developer cancels or fails to meet its obligations. For contract interpretation or a dispute, ask a UAE property lawyer to review the documents. This is general information, not tax or legal advice.
Test rental income and the exit plan
If rental income is part of the case, use current comparable rents for similar completed homes in the same area. Check the unit size, furnishing, building condition and tenant profile before relying on a rent estimate. Ask how long comparable units take to let and which costs fall to the owner.
Global Property Guide reported an asking-based gross rental yield of 5.53% for Dubai apartments in Q2 2026. This is a citywide reference before service charges, maintenance, vacancy and other costs. It is past asking-based data, not a forecast for a specific off-plan unit.
For a resale plan, check the SPA for restrictions and costs that apply to a sale before handover. Ask when the developer permits a transfer and what approvals or payments are required. Compare the likely resale market with the number of similar units scheduled for completion in the area.
M&M’s Investment Cases show how a project can be assessed through its developer, location, unit options, payment structure and potential downsides. Use that kind of project-level analysis to test whether the purchase price and exit route fit your own investment purpose.
What to do before reserving a unit
Before paying a reservation amount, ask the developer for the SPA, approved unit plan, payment schedule, escrow details, project registration and a written list of extra costs. Compare the unit with local completed properties, check the developer’s delivery history and confirm the resale or rental assumptions behind your plan.
An M&M advisor will go through your budget, timeline and shortlist with you. Speak with an M&M advisor about the projects you are considering.
Figures are past data from the sources named; this article is general information and not tax, legal or financial advice, and returns are not guaranteed.
What should I check before buying off-plan in Dubai?
Review the developer’s delivery record, project registration, escrow details, SPA, payment dates, full purchase costs, location and likely resale or rental demand. Compare the unit with completed properties nearby and confirm the exit terms in writing.
How does escrow protect off-plan buyers in Dubai?
Escrow holds buyer payments in an account for the project, with funds released for construction under Dubai’s legal framework. It adds a financial safeguard, while the SPA and project registration remain central parts of the buyer’s checks.
Can I get a mortgage for an off-plan property in Dubai?
Yes, subject to bank approval and the applicable lending rules. Central Bank of the UAE rules, verified Oct 2026, cap off-plan mortgage lending at 50% of the property’s value, so buyers need a plan for the balance.
How do I assess the rental potential of an off-plan property?
Compare likely rent with completed homes of similar size and quality in the same area. Then account for service charges, maintenance, management and periods without a tenant before assessing the income left to the owner.
