Off-plan risks and how to reduce them

Off-plan homes can cost less and let you pay over time, but you are buying something that does not exist yet. These are the main risks and how buyers reduce them.

Delays

Handover dates often move, by months or more. Check the developer's record on earlier projects, the construction progress, and the contract's grace period and delay compensation. Plan your finances for a later handover than advertised.

Cancellation

Projects are occasionally cancelled. Registered projects with escrow accounts have a refund process supervised by the regulator. Unregistered projects do not, which is why the checks in our permit guide matter.

Selling before handover

Many developers only allow resale once a set share of the price (often 30–50%) has been paid, and charge a fee for the transfer. Read the resale clause before you buy if you may want to sell early.

Financing

Banks usually lend on off-plan homes only near or after completion, and limit how much they lend. Make sure you can pay the instalments before handover from your own funds.

Costs after handover

Service charges are paid every year per square foot and vary by building. Ask for the expected rate, and remember the 4% DLD fee and other costs at purchase (see our buyer tools).

What the finished home looks like

Renders are illustrations. Check the specifications in the contract, the floor plan with sizes, and visit the developer's completed buildings if you can.

How to reduce the risk

• Choose developers with completed projects, and check the project permit and escrow account.
• Prefer payment plans linked to construction progress.
• Read the contract, or have a lawyer read it.
• Join the waiting list on PBD.ae to hear when a sold-out project releases units.

General information, not legal or financial advice.