More and more international investors are discovering the benefits of buying off plan properties Dubai. But what exactly does it mean to invest in property that is still under construction?
In this article we explain what off plan Dubai investing involves, how the purchase process works, what payment structures exist, what risks you should consider, and why Dubai remains an attractive market for many. Whether you are looking at apartments, villas or townhouses, DXB off plan projects continue to appeal to investors worldwide.
What is off plan property?
Off plan properties mean that you are buying a home or apartment that is still being built or has yet to start construction. You purchase based on architectural plans, visualizations, location details and the developer’s reputation.
You sign the sales contract before anything is physically built, which means you rely on the promises of the developer and the regulations that protect buyers.
In return for this trust, you often benefit from attractive conditions. Think of a lower purchase price compared to ready-to-move-in homes, interest-free staged payments, and the potential for price appreciation as the project nears completion. Some developers also offer incentives such as discounts, free furniture packages or visa support at certain price levels.
While the concept of buying off plan is known worldwide, in Dubai this model is tightly regulated by the government with a strong oversight mechanism. This makes it relatively safe for international investors to enter at an early stage, provided you choose reputable developers and work with a professional advisor.
On this page you will find an overview of all Dubai off plan projects.
Advantages of off plan properties:
- Lower entry price and staged payments without interest
- Protection through an escrow structure and strict government oversight
- Potential for significant value growth at completion
- Possibility to sell during construction
- On-handover financing options to increase buying power
Points to consider:
- Depends on the reliability of the developer
- No rental income during the construction phase
- Market fluctuations and currency risks
- Resale usually possible only after 30%-50% of payments
- Completion may be delayed
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Staged payments without interest
One of the biggest advantages of investing in off plan properties Dubai is the flexible payment structure. Usually you pay an initial reservation fee, for example 20%, followed by installments during construction (for example 10% every three months) until you have paid around 60%. The remaining 40% is often due on handover of the property.
These staged payments are interest-free and require no bank guarantee. Each payment is made to a government-regulated escrow account set up specifically to protect buyers’ funds.
Escrow account: protecting your investment
In Dubai, developers are legally required to open an escrow account (similar to a trust account) for every off plan Dubai project. Before sales can begin, the developer must deposit 30%-50% of construction costs into this account.
Every payment you make as an investor goes into this account. The government, through RERA (Real Estate Regulatory Authority), monitors the progress of the project. Only when a particular construction stage is completed can the developer access the corresponding funds.
Safety: strict regulations and due diligence
Dubai learned from the past. After the financial crisis, rules around DXB off plan property were tightened. But regulations alone are not enough. It is crucial to work with a professional partner who only collaborates with reputable developers.
Capital appreciation at handover
Although you do not earn rental income during the construction phase, you are building equity. Property values often increase between purchase and completion, typically between 20% and 30%, especially for projects in prime locations with strong developers.
This makes off plan properties very attractive for those willing to wait for completion. It is often possible to resell during construction, provided that you have paid 40% or 50%.
Resale opportunities during construction
For some projects you may sell once you have paid 30%-50% of the total price.
This offers the option to release funds before completion. You can cash out profits and reinvest in a new Dubai off plan project. We also assist clients in reallocating and rebalancing their property portfolios.
Risks of off plan property
Although regulations in Dubai protect investors more than before, there are still risks:
- Delays: Construction may take longer than expected, delaying rental income and affecting cash flow.
- Project quality: Not all developers deliver the same level of finish. Some buildings have shown issues after handover. Always research the developer’s track record and visit reference projects if possible.
- Currency risk: Exchange rate fluctuations can affect your return when converting AED to your home currency.
- Resale restrictions: Many projects only allow resale once a certain percentage is paid (30%-50%), reducing liquidity early on.
- No rental income during construction: Unlike ready properties, off plan properties Dubai generate no rent until completion.
Why choose off plan in Dubai?
Dubai has an ambitious vision for the future. By 2040, the city plans to double its population to around 8 million residents. The government ensures no oversupply by limiting annual new units to around 150,000. At the same time, prices per square metre remain lower compared to London, Paris or Amsterdam.
This creates a unique mix of affordability and growth, making DXB off plan a strong investment choice. The government further supports investment through infrastructure projects, low taxes and visa incentives for property owners.
Combining off plan and financing
Some investors choose to finance the final stage of their payment (for example the last 40%) through a loan. In Dubai it is possible, even as a non-resident, to borrow up to 50% of the purchase price. This is known as on-handover financing, where the loan starts when the property is delivered.
For example, an investor with €300,000 can purchase a property worth €500,000 by financing the remaining €200,000 at handover. This increases buying power without additional risk during construction.