Off-plan or ready: the short answer
Off-plan suits buyers who can wait 2 to 4 years, prefer to pay in instalments and are buying for capital growth. Ready suits buyers who want rental income or a home now, need a mortgage on standard terms, or do not want construction risk.
| Off-plan | Ready (resale) | |
|---|---|---|
| Upfront | 10 to 20% + 4% DLD | full price or 20 to 50% with a mortgage, plus about 6.5 to 7.5% fees |
| Rent | from handover | from the first month |
| Agency fee for the buyer | usually none | 2% + VAT |
| Main risk | delay, market change before handover | condition of the unit, overpaying |
| Mortgage | mostly at handover | up to 80% for residents, 50 to 60% for non-residents |
Price: what you pay and when
Off-plan is not automatically cheaper. A new launch is often priced at or above nearby ready units per square foot, because you pay for a new building, a payment plan and expected growth. The return comes from two things: prices in the area rising during construction, and leverage, because you have paid only part of the price while the whole unit gains value.
With a ready unit you pay the full price at transfer, plus about 6.5% in fees for a cash deal. You can negotiate with the owner, and in 2026 there is more room for that: Q3 sales fell about 45% after the attacks on the UAE that began on 28 February, and prices are about 1.7% below a year ago.
For either option I compare the asking price per square foot with recent DLD transactions in the same building or area. It is the most honest test of a price. For off-plan, the market has been kind to buyers of good projects: only 4% of projects launched since mid-2023 trade below their launch price. That is a statistic about the past, not a promise.
Payment plans: 60/40, 70/30 and post-handover
A payment plan says how much you pay during construction and how much at or after handover. In a 60/40 plan you pay 60% during construction and 40% at handover; in a 70/30 plan it is 70% and 30%.
- Booking: usually 10 to 20% plus the 4% DLD fee.
- Construction instalments: tied to dates or to construction milestones, paid into the project escrow account.
- Handover payment: from your own funds or a mortgage.
- Post-handover plans: part of the price is paid in instalments after you get the keys, so rent can cover some of it.
The larger the handover payment, the more you need a plan for it. If you count on a mortgage at handover, remember that non-residents usually get 50 to 60% of the value, and banks do not finance fees. Check that you can cover the gap before you book. The mortgage guide covers the bank side.
Risks and protections
The main off-plan risks are delay, changes to the project and a weaker market at handover. Dubai law reduces these risks but does not remove them.
- Escrow: under Law No. 8 of 2007 your instalments go to a project escrow account and are released to the developer as construction progresses.
- Oqood: under Law No. 13 of 2008 every off-plan sale is registered with DLD, which protects you against double sales.
- RERA oversight: fines on developers up to AED 500,000, and project progress is visible in the Dubai REST app.
- SPA terms: completion date, grace period and compensation for delay are written in the contract. Read them before you pay.
The risk on your side is your own ability to pay. If a buyer stops paying, the law lets the developer cancel and keep part of what was paid, depending on construction progress. With a ready unit the risks are different: hidden defects, the state of the building, high service charges, a tenant with a long lease. A proper inspection and a check of the service charge history cover most of them. This is not legal advice.
Rental income: from day one or after handover
A ready unit earns rent from the first month; off-plan earns nothing until handover and then needs 1 to 3 months to furnish and find a tenant. Average net yields in Dubai are 6.5 to 7% (gross about 7.1 to 7.4%), though rent growth slowed to about 1.5% a year in 2026.
On AED 2,000,000 at 6.5% net, a ready unit brings about AED 130,000 a year, or about AED 390,000 over three years of construction that an off-plan buyer waits through. Against that, the off-plan buyer has usually paid only part of the price over those years. Compare the two on the money you actually put in, not on the full price. UAE tax residents pay 0% tax on rent, and the 5% Dubai housing fee on rent is paid by the tenant. Renting out is covered in renting out property in Dubai.
Selling before handover: how assignment works
You can usually sell an off-plan unit before completion once you have paid the developer's minimum, commonly 30 to 40% of the price. The exact threshold and the fees are set in your SPA.
- The new buyer pays you what you have paid to the developer plus your premium, and takes over the remaining payment plan.
- The developer issues a NOC for the transfer and charges its own fee, which varies by developer.
- The transfer is registered in Oqood at a Trustee Office, and the new buyer pays the 4% DLD fee on the resale price.
A real example I can share in numbers. A 2-bedroom of 135 m² in UH East by Ellington (JLT) was bought in February 2024 for AED 2,545,000 on a 70/30 plan. By the time of resale about AED 1,374,000 had been invested: half the price plus the 4% DLD fee. In January 2026 it was sold before handover for AED 3,100,000. After 2% commission the net profit was about AED 493,000, which is +36% on invested capital over 23 months, or about 17% a year. The deal closed before the 2026 conflict. Past results do not guarantee future returns.
Who each option suits
Off-plan suits you if you:
- have savings for the booking and instalments but not the full price today;
- can wait 2 to 4 years without rental income;
- want a new unit in a growing area and are ready to hold or resell before handover.
Ready suits you if you:
- need rental income now or want to move in;
- plan to buy with a mortgage on standard terms;
- want the 10-year Golden Visa from AED 2 million with a title deed in hand straight away.
Some investors combine both over time: a ready unit for income and an off-plan unit for growth.
How to choose an off-plan project
Choose the developer first, then the location, then the unit. A good payment plan does not save a weak project.
- Developer track record: delivered projects, delays on past handovers, build quality in buildings already in use.
- Location: metro and road access, schools, what else is being built nearby and how many units will hand over at the same time.
- Launch price vs DLD transactions: compare the price per square foot with ready units nearby and with resales in the developer's earlier projects.
- SPA terms: resale threshold and fees, grace period, delay compensation, expected service charges.
- The unit itself: layout, view, floor. These decide how easily it rents and resells.
Deals are done through FOR YOU Real Estate, a licensed Dubai agency. Send me a project name or a listing through the form below and I will compare it with DLD data. More on the process is on the buying page and in how to buy property in Dubai as a foreigner.
