Why buy off-plan in the UAE

Dubai's off-plan market is regulated by the Real Estate Regulatory Agency (RERA), part of the Dubai Land Department (DLD). Developers must be registered, and each project must be approved before units can be sold.

Under Dubai's escrow law (Law No. 8 of 2007), every payment you make towards an off-plan property goes into a dedicated escrow account for that specific project, held by an approved trustee bank — not into the developer's general accounts. The developer can only draw funds as independently verified construction milestones are reached.

Your purchase is registered with the DLD through Oqood, the official register for off-plan sales. It records your unit, price, payment plan and expected handover, and is your legal evidence of ownership until the title deed is issued. If a project is cancelled by the regulator, the funds remaining in escrow are returned to buyers.

Abu Dhabi, Ras Al Khaimah and the other emirates have their own regulators and escrow rules along the same lines. Our partner brokerage manages the full transaction and compliance process in every emirate.

In Dubai, the main purchase cost is the 4% Dubai Land Department registration fee, paid by the buyer together with the booking payment. Developers also charge an admin fee, typically between AED 2,000 and AED 5,000. Projects in the DIFC free zone carry a 5% registration fee instead of 4%.

Developers regularly run promotions — around Ramadan or in the summer, for example — in which they cover half or all of the registration fee. We'll always tell you when a promotion applies.

Once you own the property, the ongoing cost is the annual service charge, which covers maintenance of the building and shared facilities. It depends on the area, developer and type of building: as a guide, around AED 15–20 per sq ft a year in communities such as JVC, AED 25–30 in the DIFC, and AED 60 or more for high-end branded residences, where it includes services such as concierge, valet parking and bellhops.

If you later resell, the developer issues a No Objection Certificate for the transfer, for a fee of roughly AED 500–5,000.

Registration fees differ between emirates — see below. We'll set out the exact costs for any project on your shortlist before you commit.

All payments are made in UAE dirhams. We guide every client through transferring funds with our currency partner, A Place in the Sun Currency, for better rates than most banks and the option to fix the rate for future instalments.

Most of our clients buy in Dubai, but every emirate has its own regulator, escrow rules and fees — and we cover them all.

Abu Dhabi: off-plan sales are registered and supervised by the Abu Dhabi Real Estate Centre (ADREC). Under the emirate's escrow law (Law No. 3 of 2015, amended in 2025), buyer payments go into an ADREC-supervised escrow account, and developers cannot draw on it until at least 20% of construction has been independently verified. The registration fee is 2% of the price plus an AED 400 admin fee, paid by the buyer with the booking payment. Foreign buyers can own freehold in the designated investment areas, including Yas Island, Saadiyat Island and Al Reem Island. Yas Island, where Disney's first theme park in the region is planned, is one of Abu Dhabi's most in-demand areas.

Ras Al Khaimah: off-plan projects need a sale permit from the emirate's real estate regulator, which requires the developer to hold an escrow account, and purchases are registered with the RAK Land Department. The registration fee is 4%, plus an admin fee of around AED 580 and AED 3,000 for the off-plan registration certificate — and developers sometimes cover part of it in promotions. Foreign buyers can own freehold on Al Marjan Island, and Mina Al Arab is another area with many off-plan projects.

We'll confirm the exact fees and protections for any project on your shortlist, whichever emirate it's in.

The UAE does not levy personal income tax, so rental income earned by an individual owner is not taxed in the UAE. There is no capital gains tax when you sell, no annual property or wealth tax, and no inheritance tax on property.

Your country of residence may still tax your worldwide income and gains — Spanish, German, Italian, French and Polish tax residents, for example, generally need to declare overseas property income. We recommend taking advice from a tax adviser in your home country.

Dubai's average gross rental yield runs at around 6.5–7%, with apartments at the upper end. Studios and one-bedroom apartments in established communities often achieve more. Net returns, after service charges, management and vacancies, are typically 1.5–2.5 percentage points lower.

Prices have risen strongly since 2020, driven by population growth, international demand and a steady flow of new residents. In 2026, growth has moderated to steadier single-digit gains: as of April 2026, apartment prices were up around 5.5% year on year and villas around 10%.

Off-plan buyers can also benefit from launch pricing and from staged payment plans, which spread the cost over construction and, on some projects, beyond handover.

Foreign buyers can own property outright in designated freehold areas, which include most of the UAE's major residential communities.

Property worth AED 2 million or more can make you eligible for a 10-year UAE Golden Visa, which can be extended to your family — and that includes off-plan purchases. In most cases you can apply once 20% of the price plus the registration fee has been paid. The exact rules depend on the emirate and, in some cases, the free zone, so we recommend a consultation with the Golden Visa specialist our partner provides in-house before you invest.

The UAE dirham has been pegged to the US dollar since 1997, at AED 3.6725, which gives a predictable currency backdrop for long-term investment.