This guide is for prospective buyers and investors exploring off-plan property purchases in the UAE. It covers the definition of off-plan, the legal framework including Oqood registration and escrow accounts, fees, benefits, risks, and Golden Visa eligibility.
Off-plan property is a residential or commercial unit purchased directly from a developer before construction is completed. In Dubai, off-plan transactions accounted for approximately 62.6% of all residential sales in 2025, with over 134,000 off-plan deals recorded during the year, and the trend continues into 2026. Buyers are protected through mandatory Oqood registration with the Dubai Land Department (DLD) and escrow accounts supervised by the Real Estate Regulatory Agency (RERA). This guide explains how off-plan works in Dubai, its benefits and risks, the legal framework that safeguards buyer investments, applicable fees, and eligibility for the 10-year Golden Visa through off-plan property ownership.
What Is Off-Plan Property?
Off-plan property refers to real estate that is sold by a developer while still under construction or before construction has begun. Buyers make their purchase decision based on architectural plans, floor layouts, project brochures, and show units provided by the developer. The transaction is formalised through a Sales and Purchase Agreement (SPA) between the buyer and the developer.
Unlike ready property, which refers to completed units available for immediate occupation, off-plan property involves a construction timeline. The buyer typically pays in instalments linked to construction milestones or a calendar-based schedule. Upon project completion and handover, the buyer receives the finished unit, and the provisional Oqood registration converts into a full title deed issued by the DLD.
In Dubai, all off-plan projects must be registered with the DLD, and developers must obtain approval from RERA before commencing sales. This regulatory requirement ensures that only licensed developers with approved projects can market and sell off-plan units to the public.
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Off-Plan vs Ready Property: Key Differences
Understanding the distinction between off-plan and ready property is essential for buyers evaluating their options. The two categories differ in pricing, payment structure, risk profile, and investment potential.
| Factor | Off-Plan Property | Ready Property |
|---|---|---|
| Purchase Stage | Before or during construction | After construction is completed |
| Price | Typically 10–20% lower than equivalent ready units | Market price at time of purchase |
| Payment Structure | Instalment plans linked to milestones or calendar | Full payment or mortgage at transfer |
| Customisation | Often available (layout, finishes) | Limited or unavailable |
| Risk Level | Construction delays, specification changes | Lower; unit is physically inspectable |
| Registration | Oqood (provisional) via DLD | Title deed via DLD |
| Capital Appreciation | Higher potential during construction period | Based on market conditions post-purchase |
| Rental Income | Not available until handover | Immediate upon purchase |
| Market Classification | Primary market | Secondary market (resale) |
Off-plan property is classified as primary market, meaning the transaction occurs directly between the developer and the buyer. Ready property sold by a previous owner falls under the secondary market. Both categories are regulated by the DLD and RERA.
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What Are the Benefits of Buying Off-Plan?
Off-plan property purchases offer several advantages that attract both end-users and investors in Dubai's real estate market.
Lower entry price. Off-plan units are frequently priced 10–20% below comparable ready properties, providing buyers with an accessible entry point into the market. Early-stage purchases often carry the most competitive pricing, as developers offer launch prices to generate initial sales momentum.
Flexible payment plans. Developers typically offer structured payment plans that allow buyers to spread payments over the construction period. Common structures include construction-linked plans (such as 80/20 or 60/40), calendar-based instalments (for example, 1% per month), and post-handover payment plans that extend beyond completion.
Capital appreciation potential. Property values may appreciate during the construction period, allowing buyers to benefit from price growth between purchase and handover. This potential is linked to location development, infrastructure improvements, and broader market conditions.
Customisation options. Off-plan buyers may have the opportunity to select finishes, layouts, or unit configurations during the construction phase. This level of personalisation is generally unavailable with ready property.
Modern design and amenities. New developments incorporate the latest architectural standards, energy-efficient systems, smart home technologies, and contemporary community amenities.
Developer incentives. During promotional periods, developers may offer fee waivers (such as DLD fee coverage), furniture packages, or post-handover payment terms to attract buyers.
What Are the Risks of Off-Plan Investment?
Off-plan purchases carry certain risks that buyers should evaluate carefully before committing to a transaction.
Construction delays. Projects may experience delays due to supply chain issues, regulatory approvals, or financial constraints. Developers are required to disclose projected completion timelines, but actual delivery dates may differ.
Specification changes. Minor modifications to materials, finishes, or layout may occur during construction. RERA requires developer approval for any significant changes, and buyers may have the right to cancel the contract or receive compensation depending on the severity of the alteration.
Market fluctuations. Property values may decrease during the construction period due to broader economic conditions, supply increases, or shifts in demand. Buyers should consider their investment horizon and risk tolerance.
Developer reputation. The financial stability and track record of the developer are critical factors. Buyers should verify the developer's registration with RERA and review their project delivery history before signing an SPA.
Dubai's regulatory framework significantly mitigates these risks. Mandatory escrow accounts prevent fund misuse, Oqood registration protects against double-selling, and RERA oversight ensures developer accountability throughout the construction process.
What Is Oqood Registration?
Oqood is Dubai's official digital registration system for off-plan property transactions, operated by the DLD through RERA. The term "Oqood" translates to "contracts" in Arabic and refers to the interim property register that records sales agreements between developers and buyers for properties still under construction.
When a buyer signs an SPA with a developer, the contract must be registered through the Oqood portal within 90 days. The registration process follows these steps:
- The developer submits the sale agreement details through the Oqood portal.
- Supporting documents, including the buyer's passport and Emirates ID, are uploaded for verification.
- The buyer pays the Oqood registration fee.
- Upon completion, the buyer receives an Oqood certificate confirming provisional ownership.
The Oqood certificate serves as official government proof that the buyer holds rights over the off-plan unit. It protects the buyer from double-selling, as the registered unit cannot be sold to another party. Upon project completion and handover, the Oqood certificate converts into a full title deed issued by the DLD.
The Oqood registration fee is 4% of the property's sale value, plus AED 10 in knowledge fees and AED 10 in innovation fees. A developer self-registration fee of AED 1,000 applies for provisional sale registration via the Oqood portal.
EGSH processes Oqood registration for off-plan purchases as an authorised DLD trustee office, providing complete support from initial contract signing through to title deed issuance.
| Fee Component | Amount | Paid To |
|---|---|---|
| Oqood Registration Fee | 4% of property sale value | DLD |
| Knowledge Fee | AED 10 | DLD |
| Innovation Fee | AED 10 | DLD |
| Developer Self-Registration Fee | AED 1,000 | DLD (via Oqood portal) |
| Title Deed Fee (at handover) | AED 250 | DLD |
| Map Fee (at handover) | AED 250 (unit/villa) | DLD |
How Do Escrow Accounts Protect Your Money?
The escrow account system is the cornerstone of buyer protection in Dubai's off-plan market. Established under Law No. 8 of 2007 Concerning Escrow Accounts for Real Estate Development in the Emirate of Dubai, the law mandates that all buyer payments for off-plan properties must be deposited into a dedicated project-specific escrow account, not the developer's general business account.
The key protections provided by the escrow system include the following.
Project-specific accounts. Each off-plan project must have its own separate escrow account opened with a RERA-approved bank. Funds from one project cannot be used to finance another development.
Milestone-linked fund release. Developers cannot freely access escrow funds. RERA must verify that a specific construction milestone has been completed before authorising the release of a corresponding portion of funds to the developer.
Creditor protection. Funds held in the escrow account are legally protected from seizure by the developer's creditors. This protection remains in force even if the developer faces financial difficulties.
Defects liability retention. The escrow agent retains 5% of the total project value for one year after completion to cover any defects or liabilities that emerge after handover.
Emergency provisions. In the event that a project cannot be completed, the escrow agent, in consultation with the DLD, must take measures to either complete the project or refund buyers from the remaining escrowed funds.
Before selling off-plan, developers must meet one of the following conditions set by RERA: complete 20% of construction works and obtain a no-objection certificate, deposit 20% of the construction value in cash to the escrow account, or submit a bank guarantee equal to 20% of the construction value.
Buyer Protection Timeline: When purchasing off-plan in Dubai, buyer funds are protected at every stage. At signing, all payments are deposited into a RERA-monitored escrow account. During construction, funds are released only upon verified milestone completion. If the developer fails to deliver, escrow funds are used to complete the project or refund buyers. At handover, the Oqood certificate converts to a full title deed. This framework, established by Law No. 8 of 2007, is the reason off-plan sales consistently account for the majority of Dubai's residential transactions.
Buyers can verify the escrow account status and project registration through the Dubai REST application provided by the DLD.
How Do Off-Plan Payment Plans Work?
Off-plan payment plans in Dubai vary by developer and project but generally follow one of three structures.
Construction-linked plans. Payments are tied to verified construction milestones. Common structures include 80/20 (80% during construction, 20% at handover) and 60/40 (60% during construction, 40% at or after handover). This model aligns buyer payments with actual project progress.
Calendar-based plans. Payments follow a fixed schedule regardless of construction progress. For example, a developer may offer a plan requiring 1% of the property value per month over a set period. This structure provides predictability for buyers managing cash flow.
Post-handover plans. A portion of the total price is payable after the buyer receives the completed unit. Post-handover terms typically range from one to five years and allow buyers to begin generating rental income while completing their payments.
The initial down payment for off-plan property in Dubai is typically 10–20% of the purchase price, depending on the developer and the payment plan offered. The 4% Oqood registration fee is payable separately at the time of provisional registration with the DLD.
Buyers should review the SPA carefully to confirm the exact payment schedule, penalties for late payments, and any post-handover obligations before signing.
Can You Get a Golden Visa with Off-Plan Property?
Yes. The UAE Golden Visa programme allows property investors to obtain a 10-year renewable residence visa through real estate investment. Off-plan properties qualify for the Golden Visa, provided the total property value meets the minimum threshold of AED 2,000,000.
Key eligibility conditions for off-plan property include the following.
Minimum value. The property (or combined portfolio of properties) must be valued at AED 2,000,000 or above. The value is assessed based on a DLD valuation certificate.
Construction progress. The off-plan property should reach a 50% completion milestone for automatic qualification. Properties below 50% completion may be assessed individually by the DLD.
Mortgaged property. Off-plan units purchased with mortgage financing are eligible, provided the total property value meets the AED 2,000,000 threshold and the buyer obtains a No Objection Certificate (NOC) from the financing bank.
No minimum down payment. The UAE authorities have removed the previously interpreted minimum down payment requirement of AED 1,000,000, broadening eligibility for mortgage-financed purchases.
Documentation. Applicants must submit Oqood or title deed documentation, a DLD valuation certificate (if required), bank NOC (if mortgaged), a valid passport, health insurance, and a clean criminal record.
Applications are submitted through the DLD investor portal or the General Directorate of Residency and Foreigners Affairs (GDRFA) channels. The process for off-plan purchases typically takes 8–12 weeks from application to Emirates ID issuance.
EGSH provides Golden Visa application support for property investors, including documentation preparation and liaison with the DLD and GDRFA.
How to Buy Off-Plan Property in Dubai
The off-plan purchase process in Dubai follows a structured sequence regulated by the DLD and RERA.
Step 1 — Research the Developer and Project
Verify the developer's RERA registration and active licence. Confirm the project's approval number (M-code) and check escrow account status through the Dubai REST application. Review the developer's track record for previous project deliveries.
Step 2 — Reserve the Unit
Select a unit based on floor plans, payment terms, and project specifications. Pay the reservation fee (typically deducted from the purchase price) to secure the unit.
Step 3 — Sign the Sales and Purchase Agreement
Review and sign the SPA with the developer. The SPA outlines the purchase price, payment schedule, expected completion date, unit specifications, and cancellation terms. Ensure the SPA references the escrow account details and complies with Law No. 8 of 2007.
Step 4 — Oqood Registration
The developer submits the SPA to the DLD through the Oqood portal within 90 days of signing. The buyer pays the 4% registration fee plus applicable administrative charges. Upon approval, the buyer receives the Oqood certificate. EGSH facilitates initial contract of sale registration through the Oqood system as an authorised DLD trustee.
Step 5 — Make Payments According to Schedule
Follow the agreed payment plan, depositing all instalments into the designated escrow account. Retain payment receipts for all transactions.
Step 6 — Handover and Snagging
Upon project completion, the developer issues a handover notice. Inspect the unit thoroughly (snagging) and report any defects before accepting delivery. The developer is responsible for rectifying reported defects.
Step 7 — Title Deed Issuance
After handover, the Oqood provisional registration converts into a full title deed issued by the DLD. The title deed confirms permanent ownership and is registered in the buyer's name. EGSH assists with property registration and title deed issuance.
Why Register Off-Plan Through EGSH?
Emirates Government Services Hub (EGSH) operates as an authorised DLD trustee office located in Art of Living Mall, Al Barsha 2, Dubai. EGSH processes Oqood registrations for off-plan purchases, providing complete transaction support from initial contract registration through to title deed issuance.
As an authorised government services centre, EGSH facilitates applications through official DLD and RERA channels at standard government fees. All final approvals remain with the relevant government authority.
Frequently Asked Questions
Can foreigners buy off-plan property in Dubai?
Yes. Foreign nationals can purchase off-plan property in designated freehold areas in Dubai. There are no nationality restrictions for freehold property ownership in these zones. The buyer must hold a valid passport, and the transaction is registered through the Oqood system with the DLD.
Is off-plan property a safe investment in Dubai?
Off-plan property in Dubai is regulated by a comprehensive legal framework. Law No. 8 of 2007 mandates escrow accounts for all off-plan projects, RERA supervises developer compliance, and Oqood registration prevents double-selling. These protections have contributed to off-plan transactions consistently accounting for over 60% of all residential sales in Dubai.
What is an Oqood certificate?
An Oqood certificate is an official document issued by the DLD that confirms a buyer's provisional ownership rights over an off-plan property. It is registered through the Oqood digital platform and serves as proof of the purchase agreement between the buyer and developer. The Oqood certificate converts into a title deed upon project completion and handover.
What happens if the developer delays the project?
If a developer delays an off-plan project beyond the agreed completion date, buyers have legal recourse through RERA and the Dubai courts. Escrow funds remain protected and cannot be accessed by the developer without verified milestone completion. In cases of project cancellation, escrow funds are used to either complete the project or refund buyers. Buyers can track project status through the Dubai REST application. For further information on legal protections in delay scenarios, see EGSH's guide on off-plan delays and legal rights.
Can you sell off-plan property before handover?
Yes. Buyers can resell off-plan property before handover, subject to the developer's approval and a minimum payment threshold specified in the SPA. The buyer must obtain a No Objection Certificate (NOC) from the developer and complete the transfer through the Oqood system. The transfer attracts a 4% DLD fee on the transaction value.
Can you get a mortgage for off-plan property?
Yes. Several UAE banks offer mortgage products for off-plan property. The mortgage registration fee is 0.25% of the loan amount plus AED 290, payable to the DLD. For off-plan purchases with mortgage financing, the DLD offers a combined provisional sale and mortgage registration service through the Oqood portal.
Is off-plan eligible for Golden Visa?
Yes. Off-plan property valued at AED 2,000,000 or above qualifies for the 10-year UAE Golden Visa. The property should reach 50% construction completion for automatic qualification, though the DLD may assess properties below this threshold individually. Mortgaged off-plan properties are also eligible with a bank NOC.
What is the typical payment plan for off-plan in Dubai?
Common off-plan payment structures include 80/20 (80% during construction, 20% at handover), 60/40 (60% during construction, 40% at or after handover), and calendar-based plans such as 1% per month. The initial down payment is typically 10–20% of the purchase price. Post-handover payment plans extending one to five years are also available from select developers.
Explained by
Muneer Juma Al Balushi
Real Estate Registration Trustee Consultant at EGSH
Muneer Juma Al Balushi has six years of experience in the real estate registration system of the Dubai Land Department. He specialises in accurate, secure, and legally compliant property registration.
Official Sources and References
- The Dubai Land Department (DLD) — Responsible for property registration, Oqood services, escrow account oversight, and title deed issuance in Dubai.
- The Real Estate Regulatory Agency (RERA) — Regulatory arm of the DLD overseeing developer licensing, off-plan sales compliance, escrow supervision, and market conduct.
- DLD Oqood Services — Official portal for off-plan property registration and provisional sale services.
- DLD Escrow Account Services — Information on escrow account activation and compliance for off-plan developments.
- Dubai REST Application — Official DLD mobile application for verifying property status, ownership, and project registration.
- The Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) — Responsible for residence visa issuance including Golden Visa processing.
- The General Directorate of Residency and Foreigners Affairs (GDRFA) — Manages residency permits and Golden Visa applications in Dubai.
Important Notice
The information contained in this article is current as of February 2026. Dubai real estate regulations, fees, and procedures are subject to change. Government authorities make final decisions on all applications, and approval is not guaranteed. Buyers and investors should always verify current requirements directly with the Dubai Land Department, RERA, or the relevant government authority before making property investment decisions. EGSH facilitates applications through authorised government channels but does not approve visas, issue government decisions, or override authority review.
