Off-plan means you buy an apartment before it is built, directly from the developer, and pay for it in stages. It is how many buyers enter the Dubai market: the entry price is lower than for ready property and the payments are spread out. Here is the whole process and every cost, so there are no surprises.
Can foreigners buy off-plan property in Dubai?
Yes. Foreigners can buy freehold property in designated freehold areas, with full ownership in their own name. All the projects I work with, including South Lofts, Listone Residence and Allegro Park, are in freehold areas. You do not need UAE residence to buy.
How does buying off-plan work, step by step?
- Choose the project and unit. Compare location, handover date, payment plan and service charges, not just the price. Area guides like Dubai South help here.
- Reserve with a booking deposit. This takes the unit off the market while the paperwork is prepared.
- Sign the Sale and Purchase Agreement (SPA). It fixes the price, unit, payment schedule and handover date. It can be signed digitally.
- Pay the DLD fee and register in Oqood. Oqood is the Dubai Land Department interim register for off-plan property. The 4% fee is usually paid at this stage.
- Pay instalments during construction. Payments go to the project’s RERA-regulated escrow account according to the schedule in your SPA.
- Handover. You pay the balance due at completion, inspect the unit, receive the keys and the property moves to the final title register.
- After keys. Live in it, rent it out, or keep paying if you chose a post-handover plan.
What does it cost? The full checklist
Plan for these items from day one:
- Purchase price. Paid according to the payment plan. Prices are “from” and change with availability.
- DLD fee: 4% of the price. Usually paid at booking or SPA. Some developers run promotions that cover part of it.
- Admin and registration fees. Small fixed fees for Oqood registration and processing.
- Service charges. Paid annually per square foot once the building is handed over. For Listone Residence, the estimate is approximately AED 13-15 per sq ft.
- Furnishing. Some projects, like Listone Residence, are delivered fully furnished, which saves this cost.
- No annual property tax. And no tax on rental income or capital gains for individuals in the UAE (as of 2026).
Example, 4% DLD fee:
| Project | Price from | DLD 4% |
|---|---|---|
| South Lofts | AED 419,200 | AED 16,768 |
| Listone Residence | AED 553,888 | AED 22,155.52 (about AED 22,156) |
| Allegro Park | AED 1,850,000 | AED 74,000 |
The admin fees are small by comparison, but ask for the exact amount for your unit before you sign.
How is my money protected?
Under Law No. 8 of 2007, off-plan payments go to an escrow account tied to the specific project and regulated by RERA. The developer receives funds from escrow as construction progresses, not simply when you pay. Together with Oqood registration, this is the core of buyer protection in Dubai.
Always check that the payment details in your SPA are the project escrow account.
How do payment plans work?
A typical plan: a booking deposit, a payment at SPA, instalments during construction and the balance at handover. Some developers also offer post-handover plans, where part of the price is paid after you get the keys. For example, Listone Residence offers 40/60 for studios, 35/65 for 1-2 bedroom units, a 2-year post-handover option and a 10% discount for full cash. The payment plans guide shows a worked example with exact numbers.
What should you check before signing?
- The developer’s track record and the handover date in the SPA.
- The payment schedule, especially what is due at handover.
- The escrow account details.
- Service charges, which affect your net rental return.
- Your exit plan: rent, live or resell.
Honest caveats
Off-plan has real advantages, but it is not risk-free. Handover dates can shift, the finished building will look slightly different from the renders, and you will not earn rent until handover. Buy a project you would be happy to hold, not only to flip.
Next step
If you are choosing between projects, message me on WhatsApp. I will send current prices, payment plans and a cost breakdown for the specific unit you like. Buying from another country? Read how to buy from abroad.
