Buying off plan in Dubai: what actually happens, step by step
From reservation form to Oqood registration to handover: the sequence of a Dubai off plan purchase, and the point at which your money becomes committed.
· 8 min read · Exclusively Off Plan
Off plan means buying from the developer before the building is finished. In Dubai that is a regulated transaction with a defined sequence, and knowing the sequence is what stops a buyer from committing at the wrong moment.
1. Project registration comes first
Before a developer can legally sell a unit, the project must be registered with the Dubai Land Department and its escrow account opened. Ask for the project's registration and its escrow account number at the first conversation. A project that cannot show you both is not ready to take your money.
2. Reservation
You select a unit and sign a reservation or booking form, usually with a deposit. At launch, popular releases are allocated in minutes, which is why registered buyers see the price list and floor plans before public launch. A reservation is not yet a sale, but read it, because it will state whether your deposit is refundable.
3. Sale and Purchase Agreement
The SPA is the contract. It sets the price, the payment schedule, the unit's specification and area, the anticipated completion date, and what happens if that date slips. This is the document to have reviewed properly. The clauses that matter most in practice are the permitted area variance, the delay and compensation provisions, and the conditions for assigning the unit to another buyer before handover.
4. DLD registration and Oqood
Off plan sales are recorded on the DLD's interim register, the Oqood system, rather than by immediate title deed. Registration protects your interest in the specific unit. Budget the DLD registration fee of 4% of the purchase price, plus the developer's administration and registration charges. Confirm the exact administrative amounts with your Investment Advisor for the specific project; they vary.
5. Payments against construction
Instalments are tied to construction milestones, and the money is released from escrow as those milestones are certified, not at the developer's discretion. Missing an instalment has consequences set out in the SPA, so match the schedule to your actual cash flow before you sign, not after.
6. Handover
You are notified of completion, you inspect the unit, a snagging survey is worth its cost, outstanding balances settle, and the title deed transfers to you. Service charges begin. If you intend to let the unit, the letting process starts here, and it is worth planning before handover rather than after.
Where buyers get caught out
- Assuming the completion date is fixed. It is an anticipated date. Build the possibility of a slip into your plans, particularly if you are ending a tenancy to move in.
- Not modelling the cash flow. A 60/40 plan and a post-handover plan on the same unit are very different commitments.
- Skipping the SPA review. The delay, variance and assignment clauses are where the real risk sits.
- Forgetting handover costs. Service charges, furnishing and the final instalment usually arrive together.