Off Plan Properties:
“Off Plan” a term that usually resonates fairly well with local buyers and residents. To put it in the most simplistic terms, off plan refers to upcoming real estate projects in which investors have the opportunity to purchase a property prior to its final completion.
What makes Off Plan attractive to buyers?
- Purchasing a property on a payment plan provides buyers the opportunity to pay in incremental installments without the need for paying interest fees.
- Buyers mitigate their risk without the need for exposing their capital with the full value of the property.
- Buyers enjoy the flexibility of more cash flow by paying over the course of several years
- Buyers enjoy diversifying their portfolio because this allows them to make multiple purchases
- Buyers can resell the property and realize a profit prior to completion of the project.
Off Plan vs Off Plan Resale?
Buying strictly “Off Plan” refers to buying directly from the property development firm where as buying “Off Plan Resale” refers to buying an off plan property from another buyer.
| Step | Off-Plan (Direct from Developer) | Off-Plan Resale (From Buyer/Investor) |
|---|---|---|
| 1. Choose Project | Select a unit in a new project launched by a registered developer | Identify an off-plan unit already sold by another investor that is now being resold |
| 2. Reserve Unit | Pay a booking fee (usually 5–10%) to the developer | Negotiate price with seller which would include the original price of the property and their realized profits/losses depending on scenario. |
| 3. Sign SPA / Agreement | Sign Sales and Purchase Agreement (SPA) directly with the developer | Sign a Resale or Assignment Agreement between you, the seller, and the developer |
| 4. Pay DLD Fees | Pay 4% DLD fee + Oqood fee | Pay 4% DLD fee (on full purchase value), unless already paid by original buyer |
| 5. Register Property | Developer registers property in your name in the Oqood system | Developer processes a property reassignment (Oqood transfer) from seller to you |
| 6. Payment Plan | Start payment plan directly with the developer | Take over the remaining payment plan from the seller; continue paying the developer |
| 7. Monitor Progress | Get construction updates and pay installments as per plan | Do the same; the developer treats you as the new buyer after reassignment |
| 8. Handover & Title Deed | At project completion, pay final amount, inspect unit, and get title deed | Same — at handover, complete remaining dues and get the title deed in your name |
| 9. Optional Mortgage | Can get off-plan mortgage (bank must approve the project) | Mortgage also possible, but banks may require more documentation for resales |
Examples of Payment Plans:
This type of plan ties your payments to actual construction milestones, offering protection since you only pay when progress is made.
| Milestone | Estimated Date | Payment (%) | Cumulative (%) |
|---|---|---|---|
| Booking | Jan 1, 2025 | 10% | 10% |
| SPA Signing | Feb 1, 2025 | 10% | 20% |
| 20% Construction Completion | Jul 1, 2025 | 10% | 30% |
| 40% Construction Completion | Nov 1, 2025 | 10% | 40% |
| 60% Construction Completion | Apr 1, 2026 | 10% | 50% |
| 80% Construction Completion | Sep 1, 2026 | 10% | 60% |
| On Completion / Handover (100%) | Jan 1, 2027 | 40% | 100% |
This plan sets fixed dates for payment regardless of construction progress. You must pay on schedule, even if construction is behind.
| Date | Payment (%) |
|---|---|
| On Booking | 10% |
| 3 Months After Booking | 10% |
| 6 Months After Booking | 10% |
| 9 Months After Booking | 10% |
| 12 Months After Booking | 10% |
| 15 Months After Booking | 10% |
| 18 Months After Booking | 10% |
| 21 Months After Booking | 10% |
| On Handover (Month 24) | 20% |
| Total | 100% |
There isn’t a blanket statement as to which is better as they both provide different opportunities for investors in different ways. Scheduling a chat is the best way to ascertain which is best for your particular needs.
Final Thoughts:
It’s very important to clarify your objectives when selecting an off plan property because different developers and different developments cater to different objectives. This is when selecting an independent consultant is crucial because he/she can provide a less biased recommendation because they will be interested in building a long term portfolio with clients and helping clients resale.
Marc Mesmar Property Consultant In Dubai 
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