OFF-PLAN PROPERTIES
Discover upcoming residential and investment projects by Dubai’s most trusted developers.
Frequently Asked Questions
What does off-plan property mean in Dubai?
Off-plan property in Dubai is purchased before its completion. In some cases, this type of property is purchased before construction begins. The Dubai Land Department (DLD) must approve a project for a developer and open an escrow account to collect funds from future purchasers. Typically, a purchaser must make payments in installments until construction is completed. Normally, off-plan properties take about 3 to 5 years to be completed by the developer.
Can you sell an off-plan property in Dubai before completion?
It is possible to sell an off-plan property before it is completed. However, the buyer must pay a specified amount per developer’s requirements. Typically, the developer’s percentage of the total sale price can range from 30% to 40%.
What is the process of buying off-plan property in Dubai?
The process of purchasing an off-plan property in Dubai begins with finding a professional, experienced real estate agent who will assist the buyer in choosing a suitable project. Usually, buyers pay the booking amount, make a down payment, and pay fees to the Dubai Land Department (DLD) and other administrative costs before making a deal. Purchasers sign a Sales and Purchase Agreement (SPA). Off-plan property payment plans differ according to developer policies. Payment plans are not always tied to the construction stage.
How do off-plan payment plans work in Dubai?
Typically, a first payment for an off-plan purchase should be 10% to 20% of the property’s total price. In addition to the first payment, buyers should pay 4% Dubai Land Department (DLD) fees and admin charges. Further payments depend on the developer and the payment plan. In some cases, a purchaser can pay 1% each month; in others, payments are tied to the construction stage; in others, buyers pay less during construction and more when a property is delivered.
What is a post-handover payment plan in Dubai?
Under a post-handover payment plan, a buyer can make partial payments after getting the key. Under this plan, a buyer pays a portion of the amount during construction and makes the remaining payments over several years after the property is delivered to the purchaser. Post-handover payments can be useful for earning rent and paying future installments.
What is the difference between off-plan and ready property in Dubai?
The main differences between these property types in Dubai include the flexibility of payment plans and lower entry prices for off-plan properties. Ready properties can be used for living and earning rent immediately after purchase, while investment in an off-plan property can lead to higher capital appreciation.
