Why Off-Plan? (Price Discovery, Leverage, Pipeline)
Off-plan lets investors secure today’s prices for tomorrow’s inventory, access flexible payment plans (e.g., 60/40, 70/30, post-handover, even “1% monthly” with some developers), and potentially capture appreciation at handover. Understand structures before you choose; each plan alters risk/return and cash-flow.
What the Law Protects (Escrow & Oqood)
Escrow: By law (Dubai Law No. 8 of 2007), developers must channel buyer payments into a project escrow account; funds are released against construction milestones, and key investor protection.
Oqood registration: Your sale is recorded in the DLD’s Oqood (temporary register) until completion; you receive an Oqood certificate as proof of your contractual rights. Registration fees align with DLD’s 4% framework.
The 12-Step 2025 Buying Flow
Define brief: unit type, budget, yield target, handover horizon, visa goals.
Shortlist developers/areas: look at track record, service charges, transport (Metro), schools, master plan.
Compare payment plans: 60/40 vs 70/30 vs post-handover vs “1% monthly”. Stress-test cash flow.
Reservation: sign the reservation form; pay booking (often 5–20%).
SPA review: Sales & Purchase Agreement; confirm milestones, penalties, handover spec.
Escrow verification: request escrow account details (project-specific).
Oqood registration: the developer registers within the required window; you receive the Oqood certificate.
Mortgage (if any): pre-approve with UAE lender for off-plan; note LTV and disbursement schedule.
Progress payments: link each installment to % completion; keep receipts.
Pre-handover inspection (snagging): create a snag list; developer remedies.
Handover: completion certificate, service charge setup, DEWA, move-in/NOC.
Title deed: issued after completion and final settlement (Oqood → title deed at transfer).
What It Really Costs (Beyond the List Price)
DLD/Oqood registration (~4% of price), admin/knowledge fees, trustee fees, DEWA, service charges, snagging, furnishing. (Exact figures vary by project and trustee office; confirm at the time of purchase.)
Risks & How to Mitigate
Timeline risk: choose developers with an on-time history; require milestone-based payments.
Spec drift: lock finishes/specs in SPA; photographs show units.
Liquidity risk: avoid over-stretching on ambitious post-handover plans; model rent vs installment overlap.
Market risk: diversify across communities/bed counts; avoid over-paying for hype.
Can Off-Plan Help With the UAE Golden Visa?
Property investors can qualify for long-term residency if their owned property value is ≥ AED 2 million, subject to official processes with ICP/GDRFA/DLD; mortgaged or combined properties may be acceptable if criteria are met. Check current guidance at application time.
Pro Tips From Offplans.com
Ask for the escrow account letter and the latest progress photos.
Confirm the Oqood timeline and fees before you sign.
Compare net yield (after service charges), not just gross.
Align the handover month with your employment/relocation or rental season.
FAQs
Q1: Is my money safe during construction?
A: Yes, payments go to a regulated escrow account dedicated to that project, released only against milestones as per Law No. 8 of 2007.
Q2: What is Oqood, and why do I need it?
A: Oqood is DLD’s temporary register for off-plan; it records your purchase and issues an Oqood certificate, your legal proof until the title deed. Fees follow DLD frameworks (commonly 4%).
Q3: Can I get a mortgage for off-plan?
A: Many UAE banks offer staged disbursement mortgages; eligibility depends on the project, developer approvals, and your profile.
Q4: What’s better70/30 or post-handover?
A: It depends on cash-flow and rent overlap; post-handover aids affordability but stretches payments after move-in model both.
Q5: Do off-plan purchases help with the Golden Visa?
A: Investors may qualify if their property value meets the AED 2M threshold and other conditions. Confirm the latest ICP/GDRFA rules at application time
