Payment plans, the escrow law behind every instalment, Oqood registration, what an advert must show, borrowing against an unbuilt home, and handover.
Off-plan or ready: which suits you in Dubai
The same decision from both sides: what you pay and when, what a bank will lend, where your money sits, and when you get the keys.
What ready and off-plan mean
A ready home exists. It has a title deed, a service charge history and, often, a tenant or a previous owner. You buy it from that owner, through a Dubai Land Department registration trustee, and you own it from the day of transfer.
An off-plan home does not exist yet, or is still being built. You buy it from the developer against plans and a specification. The sale is recorded on the Dubai Land Department's Oqood register, and a title deed is issued only once the building is complete and you have paid in full.
The two compared
| Ready home | Off-plan home | |
|---|---|---|
| When you pay | A deposit on Form F, by custom 10%, then the balance at transfer | In instalments fixed by the payment plan, during construction and at or after handover |
| Dubai Land Department fee | 4% transfer fee and AED 520 in title deed fees | 4% Oqood registration and AED 20 in admin fees |
| Other fees | Registration trustee fee, agency fee, the developer's NOC fee | Whatever administration charge the developer sets |
| Most a bank will lend | 80% for an expatriate's first home up to AED 5 million | 50% |
| Where the money goes | To the seller, at transfer | Into the project's escrow account |
| Living in it or letting it | From the day of transfer | After handover |
| What you can see first | The home, the building and the neighbours | Drawings, a specification and sometimes a show apartment |
Two rows decide most cases: the mortgage limit and the timing. If you need to borrow more than half the price, or need the home this year, the table has answered the question.
How the payments differ
On a ready home the money moves twice. By custom you pay a 10% deposit when you and the seller sign Form F, the sale contract. You pay the rest at the registration trustee office on transfer day, usually by manager's cheque. If a bank is lending, its cheque is part of that payment.
On an off-plan home the developer's payment plan sets the dates. Some plans ask for a share at reservation, instalments tied to construction milestones, and a final share at handover. Others carry part of the price past handover. Each instalment is paid into the escrow account, not to the developer's general account.
- Read the plan for what triggers each instalment: a date, or a construction stage
- Ask what happens if a milestone slips: whether the instalment moves with it
- Add the 4% Oqood fee to your first payments, because it is due at registration
The fees on each
On a ready home the Dubai Land Department charges 4% of the price, plus AED 520 in title deed fees for an apartment or villa. The registration trustee charges AED 4,000 plus VAT when the price is AED 500,000 or more, and AED 2,000 plus VAT below that. The agency fee is 2% plus VAT by custom. The developer's no-objection certificate costs AED 500 to 5,000, set by the developer, and Form F records who pays it.
On an off-plan home bought from the developer, the Dubai Land Department charges the same 4% to register the sale on Oqood, plus AED 10 knowledge and AED 10 innovation fees. There is no NOC on a first sale from the developer. Any other charge is the developer's own administration fee, so ask for it in writing. The buying costs calculator shows both sets of fees at any price.
What a bank will lend
The Central Bank of the UAE caps how much of the price a bank may lend. The cap depends on who you are, whether it is your first home, and whether the home is ready or off-plan.
| Home | Expatriate | UAE national |
|---|---|---|
| First ready home, AED 5 million or less | 80% | 85% |
| First ready home, over AED 5 million | 70% | 75% |
| Second or investment ready home | 60% | 65% |
| Off-plan home | 50% | 50% |
The off-plan cap means you fund at least half the price yourself, in cash, through the payment plan. Loans run for at most 25 years, and all your monthly debt repayments together may not exceed half your income. How mortgages work in Dubai covers the fees and the order to do things in.
Where your money sits
When you buy a ready home, the price goes to the seller at transfer and the title deed is issued to you in the same sitting. The exchange is simultaneous, which is the point of the trustee office.
When you buy off-plan, Dubai Law No. 8 of 2007 requires every payment to go into an escrow account opened for that project. The money can be used only to build that project, and the developer's creditors cannot seize it. The account number must appear on the project's adverts, and you can ask the developer for it before you pay a dirham.
Which to choose
A ready home fits when:
- You want to live in it, or earn rent from it, within weeks
- You need to borrow more than half the price
- You want to walk through the exact home, and meet the building, before you commit
An off-plan home fits when:
- You would rather pay in stages over the build than all at once
- You want a new home in a district that is still taking shape
- You can wait for handover, and your plans can absorb a delay
Questions to settle first
- On a ready home: the condition, the service charge and the price.Compare the asking price with recent sales of similar homes in the same building or community, and read the service charge before you judge the return.
- On an off-plan home: the developer, the escrow account and the plan.Check the project is registered, confirm the escrow account, and read what the sale agreement says about delays and what each instalment is tied to.
- On either: the total cost, not the price.Fees differ between the two, and the buying costs calculator puts them side by side. Buying off-plan in Dubai lists the off-plan checks in full.
If you cannot answer one of these for a home you like, that gap is the risk you would be buying.
Questions buyers ask
Is an off-plan home cheaper than a ready one in Dubai?
Not by rule. The developer sets an off-plan price and the resale market sets a ready price, so compare the price per square foot of similar homes in the same area. Remember too that an off-plan home earns nothing until handover.
Can I get a bigger mortgage on a ready home or an off-plan home?
On a ready home. The Central Bank of the UAE lets a bank lend up to 80% on an expatriate's first ready home worth AED 5 million or less, but only 50% on any off-plan home.
Do I pay the 4% DLD fee on both?
Yes. On a ready home it is the 4% transfer fee plus AED 520 in title deed fees and the registration trustee fee. On an off-plan home it is 4% to register the sale on Oqood plus AED 20.
Is there a developer NOC when I buy off-plan from the developer?
No. The NOC is needed on a resale, when a developer confirms the seller has no outstanding dues. On a first sale from the developer there is nothing to confirm.
Where do my off-plan payments go?
Into an escrow account opened for the project. Under Dubai Law No. 8 of 2007 the money may be used only to build that project, and the developer's creditors cannot touch it.
When can I move into or let each type of home?
A ready home from the day of transfer, when the title deed is issued in your name. An off-plan home after handover, once the building is complete and you have paid what is due.
What can I inspect before buying off-plan?
The drawings, the specification and, where the developer has built one, a show apartment. On a ready home you inspect the home itself, so a ready purchase carries less uncertainty about what you get.
Sources
- Dubai Land Department: property sale registration
- Dubai Land Department: registering the initial (off-plan) sale
- Central Bank of the UAE: Resolution 31/2/2020 amending the mortgage regulations
- Khaleej Times: how expatriates take out a mortgage in the UAE (October 2024)
- Dubai Legislation Portal: Law No. 8 of 2007 on escrow accounts
- Meraas: guide to Form F (April 2026)
Next in the series.
The completion certificate, your title deed, the inspection before you accept, and the years the developer stays responsible for defects.
Who can own, what to budget, which forms you sign, and what happens at the registration trustee when the home becomes yours.
