Off-plan in Dubai: payment plans and escrow explained

Buying off-plan means you buy a home from the developer before it is built. You pay in stages, and you get the keys at handover. Here is how that works in Dubai.

The payment plan

Every project has a payment plan that sets what you pay and when. A typical plan has a deposit on booking, instalments linked to dates or construction milestones, and a final payment at handover. Some developers offer post-handover plans that let you keep paying for a period after you move in. The split differs from project to project, so read the plan in your sales offer line by line.

Escrow

Under Dubai's off-plan rules, the money buyers pay toward a registered project goes into a project escrow account that is regulated by RERA and used for the construction of that project. This is one of the main protections for buyers, so never pay a developer or an agent into any other account.

Registering your purchase

Off-plan sales are recorded with the Dubai Land Department through Oqood, the interim registration of your contract. Ask your agent to show you the registration and keep copies of every receipt.

Questions worth asking before you book

• Is the project registered with RERA, and what is its permit number?
• What is the planned handover date, and what happens if it slips?
• Which fees apply on top of the price?
• Can I see the payment plan and the sale agreement before I pay the deposit?

Rules and fees are updated from time to time, so confirm the current position with the Dubai Land Department or a licensed agent before you commit.