Buying Off-Plan Property in Dubai: Payment Plans, Escrow and Risks
Updated · Property Demand
Off-plan means buying from a developer before the building is finished. It usually offers lower entry prices and staged payments, with buyers' money protected by escrow law.
How escrow protects you
Dubai law requires developers to sell off-plan units through a project-specific escrow account regulated by the Dubai Land Department. Your payments are released to the developer as construction progresses, not upfront. Always pay only into the official escrow account named in your contract.
Oqood: registering your purchase
Off-plan sales are recorded on the DLD's interim register, known as Oqood, which protects your ownership before the title deed is issued at handover. The 4% DLD fee is normally paid at this stage, although developers sometimes waive or share it as a launch incentive.
Typical payment plans
Plans are tied to construction milestones, for example 10% to 20% on booking, instalments during construction, and the balance on handover. Post-handover plans let you pay part of the price over several years after completion. The exact schedule is set out in the Sale and Purchase Agreement (SPA).
Checks before you buy
- The project is registered with DLD/RERA and the developer is approved to sell it.
- An approved escrow account exists for the project.
- The SPA clearly lists payment milestones, completion date and penalties for delay.
- You understand resale (assignment) rules before handover.
- The developer's track record on past completions.
Financing off-plan
Most banks cap off-plan mortgages at around 50% of value, and some do not finance off-plan at all. Many buyers use the developer's payment plan instead and take a mortgage on completion.
Frequently asked questions
Is off-plan property in Dubai safe?
Off-plan purchases are protected by escrow law: payments go into a regulated project account and are released as construction progresses. Buyers should still check the developer's record and the project's registration.
Do you pay DLD fees on off-plan property?
Yes. The 4% DLD fee applies to off-plan purchases and is usually paid when the sale is registered on Oqood, unless the developer offers a waiver.
Can I get a Golden Visa with off-plan property?
Yes, off-plan property can qualify once the purchase is registered and at least AED 2 million has been paid toward the price, confirmed by the developer.
General information, not legal, tax or financial advice. Fees and rules change; confirm with the Dubai Land Department, your bank or a licensed professional.
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