Buying off-plan in Dubai. How it works, and what protects you.
How off-plan purchases work in Dubai: payment plans such as 60/40 and post-handover plans, escrow accounts, Oqood registration, what happens if a payment is missed, and how to judge a project.
The short answer
- Off-plan means buying from the developer before completion and paying in instalments during construction.
- Your payments go into a project escrow account regulated by Dubai law and are released to the developer as construction progresses.
- The sale is registered with the Dubai Land Department in Oqood, the interim register for off-plan property.
- If a project is cancelled by the regulator, the law requires buyers to be refunded. If a buyer defaults, the developer’s rights are limited by completion stage.
- Developer track record, the escrow arrangement, the payment plan and the handover date matter more than the brochure.
What is off-plan property?
An off-plan property is one you buy from the developer before it is built — sometimes before construction starts. You sign a sale and purchase agreement (SPA) for a specific unit and pay in stages. When the building is complete and you have paid what is due at handover, you receive the keys and, in time, the title deed.
Off-plan accounts for a large share of new sales in Dubai. For international buyers, the appeal is usually the staged payments, a new building, and the choice of unit early in the project. The trade-off is time: you wait for completion, and delivery dates can move.
How payment plans work
Payment plans are written as two or three numbers that add up to 100. The first is what you pay during construction (including the booking amount); the rest is due on handover or after it.
| Plan | What it means |
|---|---|
| 60/40 | 60% paid in instalments during construction, 40% on handover |
| 50/50 | Half during construction, half on handover |
| 80/20 | Most of the price paid before completion; a smaller balance at handover |
| Post-handover plans (e.g. 40/60 with 60% over 3–5 years) | Part of the price is paid in instalments after you receive the keys |
Instalments are usually linked either to dates or to construction milestones. The 4% Dubai Land Department fee is normally paid at booking, when the sale is registered, in addition to the first instalment. Across the projects in our collection, published payment plans range from front-loaded plans to long post-handover schedules — see UAE off-plan projects in numbers.
What protects your money
Escrow accounts. Under Dubai Law No. 8 of 2007, payments for off-plan units must go into an escrow account opened for that specific project with an approved bank. The money is released to the developer against construction progress, not on demand. Always pay into the escrow account named in your SPA — never to a personal account.
Oqood registration. The sale is recorded in the Dubai Land Department’s interim real property register, known as Oqood (Law No. 13 of 2008). Registration records your interest in the unit before the title deed exists.
Regulatory oversight. The Real Estate Regulatory Agency (RERA), part of the Dubai Land Department, registers projects, supervises escrow and approves project milestones.
If a project is cancelled. Where RERA cancels a project, the developer must refund buyers in full.
What happens if you miss a payment
The developer cannot simply cancel and keep your money. Under Law No. 19 of 2017, which amended the interim register law, the developer must notify the Dubai Land Department, which gives the buyer 30 days to pay or settle. After that, what the developer may keep depends on how far construction has progressed:
| Construction completed | Developer’s options (summary) |
|---|---|
| Above 80% | Keep the contract and claim the balance, ask for the unit to be sold at auction, or cancel and keep up to 40% of the unit’s value |
| 60% to 80% | Cancel and keep up to 40% of the unit’s value |
| Below 60% | Cancel and keep up to 25% of the unit’s value |
| Not started, for reasons outside the developer’s control | Cancel and keep up to 30% of the amounts paid |
The rest must be returned within set time limits. These rules apply in Dubai; other emirates have their own.
Selling before handover
Many developers allow you to sell (assign) your contract before completion once a set share of the price has been paid — often 30–40% — and charge a fee for the no-objection certificate. Check the assignment clause in the SPA before you buy if an early exit is part of your plan.
How to judge an off-plan project
- The developer. Completed projects, delivery record against original dates, and the quality of finished buildings.
- The registration. Confirm the project is registered with the Dubai Land Department and has an escrow account.
- The payment plan. How much is due before handover, and whether instalments are tied to dates or to construction progress.
- The handover date. Treat it as an estimate. Check what the SPA says about delays.
- The location and the unit. Layout, view, orientation and service charges matter long after the launch.
- Your exit. Whether you intend to rent, live in or sell — and when.
Off-plan purchases carry risk, including delays and changes in market prices. Returns are not guaranteed.
Frequently asked.
Is off-plan property in Dubai safe?
Dubai has specific protections: payments go into a regulated project escrow account, sales are registered in the Oqood interim register, and RERA supervises projects. Risks remain — delays, market changes and developer performance — so due diligence matters.
What does a 60/40 payment plan mean?
60% of the price is paid in instalments during construction, including the booking amount, and the remaining 40% is due on handover.
When is the 4% DLD fee paid on off-plan property?
Normally at booking, when the sale is registered with the Dubai Land Department in the Oqood interim register.
Can I sell an off-plan property before completion?
Often yes, once you have paid the share the developer requires — commonly 30–40% — and obtained a no-objection certificate. Check the assignment terms in your SPA.
What happens if the developer cancels the project?
If RERA cancels a project, Dubai law requires the developer to refund buyers the amounts paid.
Sources
- Khaleej Times — Missed off-plan payments in Dubai? What your developer can legally do (10 October 2026)
- Dubai Legislation Portal — Law No. 19 of 2017 amending Law No. 13 of 2008 (interim real property register)
- Khaleej Times — Dubai off-plan buyers protected by Oqood registration and SPA safeguards
- Dubai Land Department
Reviewed on 2 November 2026. This guide is general information, not legal, tax or financial advice. Fees, rules and approvals are set by the relevant authorities, banks and developers and can change. Returns are not guaranteed.
