Off-plan means buying a property before it is built, paying in instalments tied to construction milestones. In Dubai your payments must go into a project escrow account regulated under Law No. 8 of 2007, your contract is registered on the DLD's Oqood system, and the developer's right to keep your money if you default is capped by Law No. 19 of 2017. Abu Dhabi has an equivalent escrow and disclosure regime under Law No. 3 of 2015. Off-plan can be 15 to 30 percent cheaper per square foot than ready property and the payment plan spreads the cost, but you cannot live in it, delays of 6 to 18 months are common, and you carry developer risk. This guide explains the protections, the costs, the risks and a ten-point checklist to run before you pay a booking fee.
At a glance
| Item | Dubai | Abu Dhabi |
|---|---|---|
| Escrow law | Law No. 8 of 2007; every project has a DLD-registered escrow account | Law No. 3 of 2015; escrow accounts registered with the DMT and ADREC |
| Contract registration | Oqood (interim registration) at the DLD | Interim registration through DARI |
| DLD or DMT fee | 4% of price at Oqood registration, plus Oqood fee of about AED 1,000–3,000 | 2%, paid at registration |
| Agent commission | Usually nil to the buyer; developer pays the agent | Usually nil to the buyer |
| Typical payment plans | 10/80/10, 20/80, 60/40, 1% monthly, and post-handover plans of 2–5 years | Similar; developer-led plans from Aldar, Bloom, Imkan, Modon and others |
| Mortgage LTV on off-plan | 50% maximum | 50% maximum |
| Resale before completion | Allowed once a minimum percentage is paid (typically 30–40%) with developer NOC and a fee | Similar, developer terms apply |
| Default rules | Law No. 19 of 2017 caps what the developer keeps based on completion stage | Law No. 3 of 2015 and the SPA govern termination |
| Project status check | Dubai REST app: project number, escrow account, completion %, sales permit | DARI platform and ADREC project register |
| Golden Visa eligibility | Yes, at AED 2,000,000 DLD-certified value, even with a payment plan, since February 2026 | Yes, at AED 2,000,000 |
Sources: DLD, RERA, ADREC, DMT, Dubai Law No. 8 of 2007, Law No. 13 of 2008 as amended by Law No. 19 of 2017, Abu Dhabi Law No. 3 of 2015. Reviewed September 2026.
Lower entry price than ready stock in the same area, a payment plan that lets you buy with 10 to 20 percent down and no bank, a brand-new unit with a defects liability period, and in a rising market the chance to sell before completion at a premium.
You pay for years for something you cannot use, so you keep paying rent as well. Delays are normal. Specifications can change within the limits of the SPA. The view you paid for may be blocked by the next phase. The service charge estimate in the brochure is often 20 to 40 percent below the first real bill. If the market falls before handover, you own an asset worth less than you have paid. And if you need to exit early, the NOC fee and the market for assignments can cost you the premium you hoped to make.
For a relocating family in year one, off-plan is a second-property decision, not a home decision. Read Guide 1 first.
Under Law No. 8 of 2007 a developer cannot sell off-plan until the project is registered with the DLD, land ownership is proven, and an escrow account is opened with an approved bank. Every dirham you pay must go into that account, referenced to the project. The escrow agent releases funds to the developer only against certified construction progress, with a 5% retention held for a year after completion.
What this means: if you pay a "booking fee" or an instalment to any account other than the registered escrow account, stop. The Dubai REST app lists every registered project with its number, developer, escrow bank and account. Check that the account on your payment instruction matches. Do not pay to an agent's account or a developer's general account, and do not accept "we will move it to escrow later".
If a project is cancelled by RERA, the escrow account is frozen and refunds are managed through the Special Judicial Committee for liquidation of cancelled projects. Refunds happen, slowly, and they are limited to what is in the account. This is why paying into escrow matters and why buying from a developer with a long completed track record matters more.
Oqood is the DLD's interim registration for off-plan contracts. Once you sign the SPA and pay the first instalment, the developer registers the sale on Oqood and you receive an Oqood certificate. This is your legal proof of purchase until the title deed is issued at completion. It is also what the DLD uses to certify the value for a property visa application.
You pay the 4% DLD fee at this stage, plus an Oqood registration fee, typically AED 1,000 to 3,000 depending on price. Some developers advertise "DLD fee waived" or "50% DLD fee paid" as a launch incentive. Read the small print: the fee is still paid to the DLD, the developer absorbs it, and it is usually priced into the unit.
Never accept a sale without Oqood registration. An unregistered off-plan sale is unenforceable against the developer and worthless to a bank or the visa authorities.
| Plan | How it works | Who it suits |
|---|---|---|
| 10/80/10 | 10% on booking, 80% during construction against milestones, 10% at handover | Buyers with cash flow spread over 2–4 years |
| 20/80 | 20% on booking, 80% at handover, often bridged by a mortgage | Buyers who will finance at completion |
| 60/40 | 60% during construction, 40% at handover | Cash-rich buyers wanting a lower price |
| 1% per month | 1% monthly for 80–100 months, sometimes extending past handover | Buyers replacing rent with a payment; check the total price, usually higher |
| Post-handover, 2–5 years | 40–60% paid by handover, the rest in instalments after you move in | Buyers who want to live in it while paying; the unit cannot be mortgaged until fully paid |
Two rules of thumb. The longer the payment plan, the higher the price per square foot compared with cash or ready. And any plan where you owe more than 50% at handover means you need cash or a mortgage at that date, and off-plan mortgages are capped at 50% LTV. Work out where the handover money will come from before you sign.
Almost every SPA allows the developer an extension, typically 6 to 12 months beyond the anticipated completion date, without penalty. Beyond that, the SPA usually gives the buyer the right to terminate and claim a refund, but read the clause: some SPAs allow further extensions for "force majeure" or authority delays.
Practical steps if your project is late:
Law No. 19 of 2017 amended Article 11 of Law No. 13 of 2008 and sets what the developer may keep if a buyer defaults, after a 30-day notice through the DLD:
| Completion stage | Developer may retain |
|---|---|
| More than 80% complete | Up to 40% of the price, and may sell the unit or enforce the balance |
| 60–80% complete | Up to 40% of the price |
| Less than 60% complete but construction started | Up to 25% of the price |
| Construction not started | Up to 30% of the amount paid |
The developer must refund the remainder within one year of termination or 60 days of reselling the unit, whichever is earlier. These figures are the legal maximums. Some developers negotiate below them, especially for a transfer to another buyer.
Most SPAs allow assignment once you have paid a minimum percentage, commonly 30 to 40%, with the developer's NOC. The NOC fee ranges from AED 5,000 to 50,000 or a percentage of the price, and the new buyer pays a fresh 4% DLD fee on the full price. In a strong market assignments trade at a premium. In a flat market you may need to discount to sell, and the buyer pool is smaller because banks will not finance an assignment above 50% LTV.
Abu Dhabi's Law No. 3 of 2015 requires developers to register projects, open escrow accounts, and provide a disclosure statement covering the master plan, the unit, the service charge estimate and the developer's obligations. Most Abu Dhabi off-plan is sold by a small number of large developers with government backing, which reduces counterparty risk compared with parts of the Dubai market. The 2% transfer fee is paid at registration. Payment plans are similar. Handover quality is generally consistent, but check the disclosure statement's service charge estimate against the developer's completed communities before relying on it.
Before handover the developer invites you to inspect. Hire an independent snagging company (AED 1,500 to 4,000 for an apartment, AED 3,000 to 8,000 for a villa). They will typically find 50 to 200 defects in a new unit, from paint to misaligned doors to non-functioning outlets. The developer fixes them under the defects liability period, usually one year for finishes and ten years for structure under UAE Civil Code decennial liability. Do not accept keys until major snags are cleared or a written schedule to clear them is agreed.
At handover you pay the final instalment, the developer applies for the title deed, and you register DEWA or ADDC, the owners association and, if letting, the Ejari or Tawtheeq.
If any answer is "we will confirm later", walk away. Launch-day pressure is a sales tactic, not a reason.
AED 2,000,000 off-plan apartment in Dubai, 20/80 plan, no agent commission:
| Item | AED |
|---|---|
| Booking and first instalment 20% | 400,000 |
| DLD fee 4% at Oqood | 80,000 |
| Oqood registration | About 1,500–3,000 |
| Instalments during construction (if any under this plan) | 0 |
| Handover 80%, funded by cash or a 50% LTV mortgage of AED 1,000,000 plus AED 600,000 cash | 1,600,000 |
| Mortgage registration and bank fees at handover, if financed | About 15,000–20,000 |
| Snagging inspection | 2,500 |
| Title deed issuance | 580 |
| Cash needed by handover excluding mortgage | About AED 1,085,000–1,090,000 |
Compare that with the AED 550,000–560,000 needed to buy a ready AED 2,000,000 apartment with an 80% mortgage (Guide 6). Off-plan is cheaper per square foot but harder on cash at handover unless you plan the mortgage from the start.
Frequently asked questions
We will check the registration, the escrow account and the developer's record with you. No cost. For representation, our verified partners Altura Property and Davidson and Co.
Trust
Relocate2UAE, Abu Dhabi, reviewed against DLD and ADREC off-plan rules by property and conveyancing specialists.
DLD, RERA, ADREC, DMT, Dubai Law No. 8 of 2007, Law No. 13 of 2008 as amended by Law No. 19 of 2017, Abu Dhabi Law No. 3 of 2015.
Independent. Relocate2UAE does not earn from your off-plan purchase.
What changed since the last version: first publication. Escrow, Oqood and default rules reviewed against DLD and ADREC sources, September 2026.
Disclaimer: This guide is for general information and is not legal advice. Every off-plan purchase is different. Verify the project's registration and escrow account before paying anything, and have the SPA reviewed by qualified lawyers.
