Off-plan means buying a unit before it is complete — sometimes before construction has started at all — directly from the developer rather than an existing owner. Because there is no finished asset to inspect and no title deed yet to transfer, Dubai regulates the process differently from a secondary (ready) purchase: payments move through an escrow mechanism rather than changing hands in full at completion, and your interest sits on an interim register until the building is finished.
Off-plan has consistently made up a large share of Dubai's residential transactions in recent years. The scale involved is substantial: DLD recorded 60,303 transactions worth AED 252 billion in Q1 2026 alone, a 31% year-on-year increase (Dubai Land Department, Q1 2026) — part of why the process below is standardised rather than left to individual developers to define.
Ahead of a project's public launch, developers commonly take an Expression of Interest (EOI) — a refundable deposit that reserves your place in the queue for unit selection, without obligating you to buy. EOI amounts vary widely by project and are set by the developer, not by law, so treat any figure quoted as project-specific rather than standard practice. An EOI buys priority access on launch day; it is not itself a purchase, and you're free to walk away if nothing suits once units are released.
Once you've chosen a specific unit, you pay a booking fee — commonly in a 5-20% range of the unit price — usually non-refundable but credited toward your first instalment. You'll need identification (passport, and Emirates ID if resident) and proof of address.
Within a short window after booking — commonly days to a few weeks — you sign the Sale and Purchase Agreement (SPA), the binding contract between you and the developer. A properly drafted SPA sets out the unit and project specification, the full price and payment schedule, the anticipated completion date and its grace period, and default, termination and resale clauses. Read the completion-date and grace-period clause with particular care — it governs what happens if handover runs late, covered in more depth in our companion guide, Is It Safe to Buy Off-Plan in Dubai?
Oqood is DLD's interim property register, created under Law No. (13) of 2008 (as amended by Law No. (9) of 2009) specifically to regulate off-plan sales. The law is unambiguous on the point that matters most: a sale contract for an off-plan unit is void unless registered on this interim register. In practice, the developer submits your signed SPA to DLD for Oqood registration; once accepted, you receive a provisional e-certificate confirming your registered interest, unit and payment terms.
Registration itself is quick once submitted, though developers are commonly reported to have up to 90 days from SPA signing to submit it. The fee is 4% of the sale value plus a AED 10 knowledge fee and a AED 10 innovation fee (Dubai Land Department). Oqood is not the end state: it converts to a title deed once the developer holds a completion certificate and you've settled the payment plan.
Three structures are common, though the exact split is set project-by-project, not by law:
- Construction milestone-based — instalments release as the building reaches defined stages (for example, foundation, 30%, 50%, structure complete), with the balance due on handover.
- Date-based — fixed instalments on a calendar schedule regardless of build pace, more often used by developers with stronger balance sheets, since it decouples their cash collection from construction progress.
- Post-handover — a portion (commonly illustrated as around 60/40, though splits vary by project) is paid during construction, with the remainder spread over one to several years after you take possession.
Whichever structure applies to your unit, the developer cannot simply draw down your money on its own timetable — that is what the escrow mechanism below is built to control. If a buyer instead falls behind on the schedule, DLD requires a 30-day notice before the developer can act, and any retention of amounts already paid then scales with construction progress under Law No. (19) of 2017.
Every off-plan project selling units must run its collections through a dedicated escrow account under Law No. (8) of 2007. The account is opened in the name of the specific project, not the developer generally, and is "dedicated exclusively to the construction of that Real Estate Development project" (Art. 9). Funds are shielded from the developer's general creditors, and the escrow agent releases money only against verified construction progress, under DLD oversight. Once the developer secures its completion certificate, the escrow agent must still retain 5% of the account for a further year (Art. 14) — a deliberate holdback against post-completion defects and disputes.
Escrow law is a real, meaningful protection, and it is worth being precise about what it actually secures: the process your payments go through, not the outcome of your investment. It does not guarantee the unit will be worth what you paid at handover, and on its own it does not fix a delivery date — that sits in the SPA's completion clause instead. We go deeper on the limits of escrow protection, and how to vet a specific project against them, in Is It Safe to Buy Off-Plan in Dubai?
Once the developer obtains its building completion certificate, it issues a completion notice, which starts a limited window — commonly reported around 30 days — to complete snagging, settle any outstanding balance, and register title.
Snagging — inspecting the unit for defects in finishes, fixtures, plumbing, electrical and other systems — is not itself a legal requirement, but it is your only realistic opportunity to document problems before you sign the handover certificate. Once you do, ownership registers at DLD, utilities activate, and you receive keys and your title deed, which now supersedes the Oqood registration entirely.
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Budget for the following on top of the unit price:
| Cost | Typical amount | Notes |
|---|---|---|
| DLD registration / transfer fee | 4% of sale value | Charged at Oqood registration and again at title transfer (Dubai Land Department) |
| Knowledge + innovation fees | AED 20 total (AED 10 + AED 10) | Fixed administrative charge applied on registration (Dubai Land Department) |
| Trustee Office / admin fee | Reported around AED 4,000 for units valued at AED 500,000 or above | Typically payable around handover/title transfer |
| Title deed issuance | Reported around AED 250 | Administrative charge |
| Snagging inspection (if you hire a professional) | Reported roughly AED 500-2,500, depending on unit size | Optional but worth doing before you sign the handover certificate |
Together, these typically add up to somewhere in a 4-6% range on top of the purchase price. None of this is a developer fee you can negotiate away — it is the regulatory cost of registering the transaction. Confirm exact current charges directly with DLD or your Trustee Office before finalising a budget.
Before paying anything, including an EOI, confirm three things independently rather than taking a developer's or broker's word for it: that the developer is currently registered with DLD and holds a valid Trakheesi permit; that the specific project — not just the developer generally — is separately registered with an active, project-specific escrow account; and that the escrow account number on any documentation matches DLD's own record. The Dubai REST app and DLD website both support this lookup. Never transfer money to an account other than the registered escrow account, regardless of who is asking. We set out the full red-flags checklist — including how to read a delay clause and what genuine stalled-project precedent looks like — in Is It Safe to Buy Off-Plan in Dubai? How to Vet a Project
Mitchell's Commercial Real Estate works with investors through each stage of an off-plan purchase in Dubai — comparing launch allocations and payment plans, reviewing SPA and Oqood terms, and coordinating snagging and title transfer at handover. If you're weighing a specific project, or comparing payment structures across two or more launches, get in touch before you commit funds.
This guide is provided for general information only and is not legal, tax or investment advice. Regulations, fees and processing timelines change; always confirm current requirements directly with the Dubai Land Department, RERA, or a qualified UAE-licensed professional before acting.
In closing
Key Takeaways
- Off-plan buying in Dubai runs on a fixed regulatory sequence — reservation, SPA, Oqood interim registration, an escrow-controlled payment plan, handover, then title deed — set by Dubai Land Department (DLD) law, not developer discretion.
- Two laws do most of the protective work: Law No. (8) of 2007 (escrow accounts) and Law No. (13) of 2008, as amended (the interim register, or Oqood). Knowing what each does — and doesn't — matters more than any marketing claim.
- Oqood is not a title deed. It is an interim registered interest that exists between SPA signing and handover; full ownership registers only once the developer holds a completion certificate and you have cleared the payment plan.
- Budget for roughly 4-6% above the purchase price in DLD transfer/Oqood fees and administrative charges — this is a fixed cost of the transaction, not an optional extra a broker can waive.
- Escrow law controls how a developer draws down your payments against verified construction progress. It does not control the unit's resale value at handover, and on its own it does not guarantee a fixed delivery date.
- Snagging happens in a narrow window after the developer's completion notice — your only practical opportunity to document defects before you sign the handover certificate.
- Verifying a developer's DLD registration, Trakheesi permit and project-specific escrow account takes minutes via the Dubai REST app. Do this before paying anything, not after.
This guide covers the process of buying off-plan (under-construction) residential or commercial units directly from a Dubai-registered developer. It does not cover secondary-market (ready) purchases, which follow a different registration path, or investment strategy and returns, which we cover in separate guides.
Frequently asked questions
0601What's the difference between Oqood and a Dubai title deed?
Oqood is an interim registration recorded on the Dubai Land Department's interim property register while a project is under construction; it confirms your registered interest and payment terms under Law No. (13) of 2008, as amended. A title deed is full, permanent ownership registration, issued only once the developer holds a completion certificate and you have settled the payment plan. Until handover, Oqood is the only registered evidence of your purchase.
02How much deposit do you need to reserve an off-plan unit in Dubai?
There is no statutory figure — Expression of Interest (EOI) and booking-fee amounts are set by each developer, not by law. A refundable EOI commonly reserves priority before launch, and a booking fee (commonly cited in a 5-20% range of the unit price) is usually paid on selecting a specific unit and credited toward your first instalment. Treat any percentage quoted to you as project-specific, not a fixed rule, and get it in writing before paying.
03Is your money protected if the developer runs into financial trouble?
Payments must be deposited into a project-specific escrow account under Law No. (8) of 2007, ring-fenced from the developer's general creditors and released only against verified construction progress. This meaningfully reduces, but does not eliminate, buyer risk: escrow protects the payment process, not the eventual value of the unit or the project timeline. Our companion guide, Is It Safe to Buy Off-Plan in Dubai?, sets out what to check on a specific project.
04Can you get a mortgage on an off-plan property in Dubai?
Some UAE banks lend against off-plan units, typically once construction passes a lender-set completion threshold and outstanding instalments are current. Loan-to-value limits and eligibility criteria vary by bank and change over time, so confirm current lending terms directly with your bank before assuming financing is available. Per Mitchell's guidance as a RERA-licensed broker (BRN 68593), that 50% is of the original purchase price, not the current market value, while the project is under construction; only once handover is imminent, roughly the final six to eight weeks, may a lender advance against market value instead.
05How long does Oqood registration take once the SPA is signed?
Once submitted to the Dubai Land Department, processing is reported to be fast, commonly within a day or so, though the developer is responsible for submitting your signed SPA for registration in the first place, and reported timeframes for that step vary. Confirm the expected timeline with your developer and check your registration status directly through the Dubai REST app.
06What happens if you miss a payment on your off-plan payment plan?
The Dubai Land Department first serves a notice giving the buyer 30 days to rectify the default. If the default continues, the developer's right to terminate and retain part of the amounts paid depends on how far construction has progressed at that point, under Law No. (19) of 2017, amending Law No. (13) of 2008 — broadly, the less complete the project, the smaller the share a developer may retain, though the exact bands should be confirmed against current legal advice (see below).
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Updated 9 July 2026 by Mitchell's Commercial Real Estate. Market figures quoted reflect the data available at that date.
