Off-Plan Property Purchase in Dubai: A Guide

When purchasing off-plan properties in Dubai, buyers should be aware of upfront costs, including the Dubai Land Department (DLD) fee, booking amounts, and potential trustee or administrative fees. It's crucial to ensure the project is RERA-registered and that funds are secured in a RERA-regulated escrow account for investment protection. Buyers typically don't pay brokerage fees, reducing overall costs compared to resale properties. Mortgage pre-approval isn't usually required initially, but it becomes relevant when financing is planned, typically closer to completion.

Payment plans significantly influence affordability. Common structures include 50/50 and 60/40, with most payments during construction and the balance at handover. Researching the developer's track record and understanding service charges are essential. Buyer-friendly plans like 60/40 or 70/30, with lower initial payments and construction-linked milestones, can ease financial pressure. Post-handover plans allow investors to generate rental income before completing all payments.

During construction, when rent and installments overlap, careful budgeting is crucial. UAE residents typically allocate around 30% of income to housing. Buyers must manage both commitments from personal funds, as mortgages are generally available only after completion. Consider keeping total monthly financial commitments within 50% of income, including service charges, utilities, and maintenance costs, while maintaining an emergency buffer.

Mortgage eligibility and credit scores become relevant at handover. Banks often require a minimum monthly salary, along with stable employment and bank statements. A strong credit score improves loan-to-value ratios and access to better rates. After signing the Sales & Purchase Agreement, buyers follow the payment schedule and track construction progress through the developer or official platforms like the Dubai REST app or RERA website.