Buying off-plan in Dubai: how your money is protected with the developer
Off-plan means you buy a home that doesn’t exist yet – from the plans, directly from the developer. That has advantages, and it has risks. Dubai has strict rules that protect your money. Those who know them buy with peace of mind. Those who ignore them may, in the worst case, buy an empty promise.
In short: When buying off-plan in Dubai, your money goes into a trust account (escrow) that may only be used to build your specific project. And the purchase must be entered in the Oqood register within 90 days – otherwise it is void.
Why buy off-plan at all?
Three reasons speak for buying off-plan: you pay in instalments according to a payment plan, often over several years, instead of the full price at once. You get a new home built to today’s standards. And you lock in today’s price for a home that will only be finished in two or three years.
The price for that: you wait for completion, receive no rent in the meantime and have to trust the developer. Dubai has turned exactly this trust into rules. We explain the most important ones here.
How buying from a developer works
- Sales contract: You sign the Sale and Purchase Agreement directly with the developer. It sets out the price, the payment plan and the planned completion date.
- Oqood registration: The developer must register the purchase in the interim register, known as Oqood, within 90 days. You pay the 4% registration fee to the Dubai Land Department at this point, not at handover.
- Payments according to the payment plan: You pay in instalments, usually linked to construction progress – into the project’s escrow account.
- Completion and handover: Once the project is finished, handover and registration as owner follow. Only then do you receive the title deed.
All costs at a glance: Buying costs for property in Dubai.
The escrow account: your most important protection
A developer may only sell homes off-plan if the project is registered with the Dubai Land Department and an escrow account has been opened. Your payments go into this account and may only be used to build that specific project.
So that not just anyone can register a project, the developer must also provide one of three things:
- 30% construction progress
- a bank guarantee of 30%
- a cash deposit of the same amount
The escrow system is why buying off-plan in Dubai is much safer today than it was 20 years ago.
Oqood: no registration, no valid purchase
Oqood is the interim register for homes still under construction. The developer must register your purchase there within 90 days.
Financing off-plan
Under the UAE Central Bank’s rules, off-plan purchases may be financed up to a maximum of 50%. You always pay the buying costs from your own funds.
In practice, many buyers pay for off-plan homes through the developer’s payment plan rather than involving a bank. Which option suits you better depends on your equity and your timeline.
Checklist before you sign
Go through these points before signing an off-plan contract:
- Is the project registered with the Dubai Land Department?
- Is the escrow account number in the sales contract – and does it belong to the project, not to the developer itself?
- Do you pay exclusively into this escrow account? Never into a private account, never in cash.
- Will the purchase be registered in Oqood within 90 days?
- Is your agent RERA licensed (ORN and BRN), and does the listing carry a Madmoun QR code?
- Is nobody putting you under time pressure? “Available today only” is a warning sign.
Our full eight-point checklist is on the page Real Estate Agent in Dubai.
What does an agent cost for off-plan?
With us: nothing. The developer pays the commission. Buying directly from the developer isn’t cheaper for you – but you miss out on a neutral comparison of several developers and projects.
We compare developer, location, price and rental demand and find the best unit within a project for you: position in the building, orientation, floor plan. And if a project doesn’t suit your goal, we tell you.
Have a project in mind?
Send it to us. We check the registration, the developer and the payment plan and tell you honestly what we think.
FAQ
What happens to my money if the developer stops building?
Your money is in the project’s escrow account, and the developer may not use it for anything else. If a project is cancelled, the regulator RERA takes over the settlement: either another developer completes the project, or buyers get their payments back from the escrow account. That isn’t a guarantee down to the last dirham – but it is a completely different level of protection than a transfer to the developer’s own account.
What if completion is delayed?
Delays happen. Your rights in that case are set out in your sales contract, usually after a grace period. That’s why we check what a developer has delivered on time so far before we recommend a project.
Can I finance an off-plan apartment?
Yes, but up to 50% at most. You pay the buying costs from your own funds.
Does an off-plan apartment count for the Golden Visa?
Yes, if the developer is approved in the UAE and your properties are worth at least AED 2 million in total. All requirements are in the guide Golden Visa in Dubai with property.
Sources
- DLD: Request to Register the Initial Sale
- Law No. 13 of 2008, Article 3
- Law No. 8 of 2007 on escrow accounts, Articles 6, 9 and 11
- DLD: Register Project
- DLD: Frequently asked questions
- UAE Central Bank: Mortgage Regulations, Article 3
- DLD: Madmoun QR code (April 2023)
- DLD: Golden Visa for property investors
Updated: October 2026. This guide summarises the legal position in general terms and does not replace legal advice in individual cases.
