Question 1

What does off-plan property mean in Dubai?

Accepted Answer

Off-plan property in Dubai is bought before the construction of the property is complete. The Dubai Land Department has to give approval to the builder for the construction project. Then the developer will open an escrow account for the buyers. Buyers pay for the property in instalments and the building takes three to five years to construct and be ready for sale.

Question 2

Can you sell an off-plan property in Dubai before completion?

Accepted Answer

Yes. The buyer has to pay a minimum amount of money as set by the developer prior to buying the off-plan property. This initial payment is usually between 30 and 40% of the total price of the property.

Question 3

What is the process of buying off-plan property in Dubai?

Accepted Answer

First, an experienced real estate agent will show you the available properties and help you to choose a project that will suit you best. You will have to pay a booking amount, a down payment, and Dubai Land Department (DLD) and administrative fees to the developer. You will then sign a Sales and Purchase Agreement (SPA). Developers may set their payment plans when selling off-plan properties.

Question 4

How do off-plan payment plans work in Dubai?

Accepted Answer

The first payment will be between 10 and 20% of the property price. This payment also includes 4% for DLD and administrative fees. Depending on the developer, some ask for a 1% payment every month for their properties until construction is complete. Others will require the buyer to pay instalments linked to the construction stages. Some developers set their payment plans to include more of the property price to be paid upon delivery of the property.

Question 5

What is a post-handover payment plan in Dubai?

Accepted Answer

Buyers pay part of the purchase price of the property while it is being constructed. The remaining balance will be paid over several years after the property is handed over and ready to move into.

Question 6

What is the difference between off-plan and ready property in Dubai?

Accepted Answer

Off-plan properties have flexible payment plans and are available at a lower price point with great potential for the property to appreciate in value. Ready properties, on the other hand, can be occupied or rented out immediately after purchase.

Off-Plan Projects in UAE.

Oceanz

Chelsea Residences

Need help comparing off-plan projects?

What buyers ask before going off-plan.