Off-plan is the most popular way to buy in Dubai, and for good reason: lower entry prices, flexible payment plans and the chance to buy early in a new community. But the price on the brochure isn't the whole cost. Here's what you'll pay, and when.
1. When you book
- Booking deposit. Usually 5–20% of the price, depending on the developer and the payment plan.
- DLD registration fee. The Dubai Land Department charges 4% of the purchase price to register the sale (for off-plan this is called Oqood registration), plus a small admin fee. Some developers cover part or all of this as a launch incentive, so it's always worth asking.
- Agency fee. On most off-plan purchases bought directly from the developer, the developer pays the agent's commission, not you.
2. During construction
You'll pay instalments in line with the payment plan, either at set dates or at construction milestones. Plans vary widely: some ask for 50% before handover, others as little as 20–30%, and some spread payments over several years after handover.
Most buyers pay these instalments in cash. Banks generally lend at or near handover, so if you plan to use a mortgage, check how much you'll need to have paid before then.
3. How your money is protected
Under Dubai law, off-plan payments must be paid into an escrow account linked to that specific project and regulated by the authorities. Developers can only draw funds as construction progresses. This protects buyers, but it doesn't replace choosing a developer with a strong delivery record — which is the first thing we look at.
4. At handover
- The final payment due on completion, or the start of any post-handover plan.
- Service charges begin once you take ownership. They're charged per square foot each year and vary from building to building.
- Utility connection with DEWA, including a refundable deposit.
- Snagging inspection (optional, but recommended) to make sure everything is finished properly before you accept the keys.
- Furnishing if you plan to rent the property out furnished or live in it.
5. If you want to sell before handover
Many developers only allow you to sell (assign) your unit once you've paid a set percentage, often 30–40%. A transfer fee usually applies. Check this before you buy if a quick exit is part of your plan.
A bonus: residency
Property worth AED 2 million or more can qualify for the UAE's 10-year Golden Visa, subject to the current criteria, including for some off-plan purchases. We'll check eligibility with you.
The bottom line
Budget for at least 4% on top of the price for registration, check the payment plan against your cash flow, and know your costs at handover. We give every client a full cost breakdown before they commit, so there are no surprises.
This article is general information, correct at the time of writing, and not legal or financial advice. Fees and rules can change.
