Buying off-plan properties in Dubai is a great option for people who want lower prices, easy payment plans, and long-term value growth. However, to make it successful, you need to choose a trusted developer and follow the rules set by the Dubai Land Department and RERA. Off-plan properties can often be financed up to 50% before completion, but this is only available with selected projects and reliable developers.
When learning how to buy off-plan property in Dubai, start by checking trusted real estate websites or the developer’s portal for verified and updated listings. However, off-plan buying can have risks, like project delays, high prices, or issues with reselling at the right time, especially if the market is at its peak. If you’re looking for future value growth and flexible payments, off-plan properties can be a good deal.
What Is Off-Plan Property?
An off-plan property is one that hasn’t been built yet or is still under construction. You buy it before it’s finished, based on the developer’s floor plans, brochures, or show units. In Dubai, this means signing an agreement for a property in the pre-construction or construction phase, often with flexible payment plans like 40%, 50%, or 60% during construction and the rest when the property is handed over.
Why Are Off-Plan Properties Popular in Dubai?
- Lower Starting Prices: They cost less than ready properties, making them easier to afford.
- Price Growth: The property’s value often increases by the time it’s completed, giving investors a profit.
- Flexible Payments: You can pay in installments, which helps spread out the cost.
- Modern Designs: You get new properties with the latest designs and amenities.
Step-by-Step Process to Buy Off-Plan Property
Here is the step by step process guide to explain how to buy off plan property in Dubai:
Step 1: Research Developers & Projects
The first and most important step is to set your budget and choose a location. Decide which area fits your goals and figure out how much you can spend. Once your budget and location are clear, you can start shortlisting the right developers and projects. Select well-known, registered developers in Dubai like Emaar, Nakheel, DAMAC, Sobha, Danube, or Azizi.
Make sure the project is approved by the Real Estate Regulatory Agency (RERA). You can verify this on the Dubai Land Department (DLD) website or App to confirm the developer and project are legit. Check if the developer has completed past projects on time and delivered the promised quality and facilities.
Step 2: Select the Right Project
Once you’ve shortlisted trusted developers, the next step is choosing the right project. Each developer offers various locations, unit types like studios, 1-bedroom, 2-bedroom apartments, or villas, and payment plans.
You need to check if the project is in a growing area, how easy it is to access near metro, highways, or schools, and if there’s strong rental demand in that location. Also, make sure the project’s handover timeline is realistic and compare amenities like gyms, pools, security, and nearby shops.
Step 3: Book the Unit
After picking your ideal project and unit, the next step is booking the property. During the booking process, you’ll need to submit identity documents like:
- Passport copy
- Visa
- Emirates ID
Then, you pay a booking amount, usually 5% to 20% of the total price, depending on the developer and project. Some developers let you hold a preferred unit for a short time.
Step 4: Review the SPA (Sales Purchase Agreement)
The next crucial step is reviewing the Sales Purchase Agreement (SPA). This is a legal contract between you and the developer that outlines all the important details of the property deal, like the payment plan, delivery timeline, penalties, warranties, and cancellation policies.
Before signing, make sure you understand every part of the agreement clearly. If possible, get advice from a real estate legal advisor or consultant. Signing the SPA is a big legal commitment, so don’t rush into it without fully understanding the terms.
Step 5: Pay the Down Payment
The next step is making the down payment, which is usually 10% to 20% of the property’s total value, though this can vary depending on the developer and project. This payment is typically made via bank transfer or manager’s cheque, and once it’s done, your booking is officially confirmed.
Some developers offer flexible payment plans tied to construction milestones. At this stage, make sure you get a payment receipt and an official confirmation letter to ensure your transaction is secure.
Step 6: Follow the Payment Plan
Follow the developer’s payment plan to pay the remaining amount after paying the down payment. This plan is usually tied to construction milestones, like 10% when the foundation is done, 20% when the structure is ready, and a final installment before handover.
Each developer has a different schedule, but these plans are regulated by the Dubai Land Department (DLD) to keep buyers protected. Make sure to track your payment deadlines and complete them on time to avoid penalties or delays.
Step 7: Registration with DLD
After buying an off-plan property, you need to register it with the Dubai Land Department (DLD). This step confirms your legal ownership and gets you an Oqood certificate, which acts as a temporary title deed until the property is completed.
To register, you’ll need to provide a copy of your passport, the signed Sales Purchase Agreement (SPA), and the initial payment receipt.
The DLD registration fee is usually 4% of the property’s value, which the buyer typically pays. This step is crucial to ensure your investment is officially recorded and secure in government records.
Step 8: Handover & Inspection
The developer will send you an official notice that the property is ready, and you can inspect it. At this stage, you should do a snagging inspection,carefully check the property for any construction flaws, finishing issues, or maintenance problems so the developer can fix them.
If everything looks good, you make the final payment, and the property is officially handed over to you. During handover, you’ll also receive a completion certificate, which proves the building is legally finished and ready for you to move in or use.
Must Check: How to Buy property in Dubai
Costs Involved in Buying Off-Plan in Dubai
When buying an off-plan property in Dubai, there are several important costs you should be aware of before buying:
- Booking Fee: To secure your unit, you usually pay a booking amount of 5%-10% of the property’s price.
- Down Payment: After booking, you’ll need to make an initial down payment of 10%-20%, based on the payment plan.
- DLD Fee (4%): You pay a 4% registration fee to the Dubai Land Department, which is the buyer’s responsibility.
- Service Charges: Once the property is complete, you’ll pay yearly service charges, which vary depending on the property type and size.
- Agent Fees: If you buy a property through a real estate agent, you may need to pay a commission of up to 2% of the property’s price.
Must Check: Best areas to buy property in Dubai
FAQ
Is it worth buying off-plan property in Dubai?
Yes, buying off-plan properties in Dubai is a smart move because their value can grow even during construction.
How do I buy off-plan property in Dubai?
To buy an off-plan property in Dubai, pick a trusted developer, review the payment plan, sign the legal documents, and make payments step-by-step during construction.
Can I get a mortgage for an off-plan in Dubai?
Yes, some banks in Dubai offer up to 50% mortgages for off-plan properties, but only for specific projects and trusted developers.
Start Your Off-Plan Investment Journey Today
Buying an off-plan property in Dubai can be a great long-term investment. If you plan carefully, choose a reliable developer, and follow the steps mentioned above. Whether you are aiming to earn through rental income or price growth, you can start benefiting from your property over time.
Need expert help and access to verified projects? The experienced consultants at Habico Properties are ready to guide you every step of purchasing.