An off-plan apartment is bought before it exists in finished form. The transaction is regulated, but the buyer is still taking delivery risk that a ready purchase does not involve.
How the transaction works
The buyer signs a sale agreement with the developer, which is registered with the authorities, and pays in stages linked to the payment plan. For regulated projects, buyer payments are routed through a project escrow account rather than paid directly to the developer's general funds.
Payment plans
- Plans vary widely between developers and projects.
- Some are weighted toward construction milestones, others toward handover.
- Post-handover plans extend payments past completion.
- The plan is a commercial term, and it affects total exposure and flexibility.
What to verify before signing
- That the developer and project are registered with the relevant authorities and that the escrow account exists.
- The stated completion date and what happens if it slips.
- The specification, and the developer's contractual right to vary it.
- The developer's record on projects already delivered.
- Whether resale before handover is permitted, and on what terms.
At handover
- Inspect thoroughly and record defects formally within the timeframe the contract allows.
- Check the actual finished specification against the contract.
- Confirm the service charge for the operating building.
- Complete registration so ownership is recorded in your name.
Frequently asked questions
- Is off-plan property in Dubai regulated?
- Off-plan sales in Dubai operate under a regulatory framework administered through the Dubai Land Department and RERA, including registration of sale agreements and the use of project escrow accounts. Verify the specifics for the individual project.
- Can you sell an off-plan apartment before completion?
- Sometimes, subject to the developer's terms and the applicable rules, often requiring a proportion of the price to have been paid. Confirm the conditions in the contract before relying on it.