Should I invest in an Off Plan? Strategies to Off Plan Property and What to Watch Out For
Off plan property in Dubai is undeniably a hot market, but it has its unique set of advantages and challenges. But what is off plan property? Is buying off-plan in Dubai risky? And is it the right investment choice for you?
In this guide, we’ll walk you through the advantages, risks, and essential considerations for potential investors, while highlighting red flags to avoid.
What is Off Plan Property?
Off plan refers to buying real estate investments while still in the planning or construction phase, before the building is completed. As investment in Dubai real estate continues to grow, off plan projects have become an integral strategy, presenting both opportunities and risks.
Is Buying Off Plan in Dubai Risky?
Like any investment, there are pros and cons to weigh before diving in. Let’s start with the benefits and risks of buying an off plan property in Dubai versus to buying from the resale market.
| Off Plan Property – Advantages | |
|---|---|
| 1. Price Discounts | – Some waive 4% DLD and/or 2% agent commission – Ongoing promotions |
| 2. First Choice on Unit | – Variety of options, floor plans (esp. after launch) |
| 3. Small Down Payment | – 5% -10% – Gives more time to get finances in order |
| 4. Flexible Payment Terms | – Some offer Post Payment Plans (2-5 years after completion) – Payment plans depending on Dubai developers (10:90, 20:80, 30:70, 40:60, 30:70) |
| 5. High ROI | – Capital appreciation – Off plan rental yield for Investors |
| 6. Brand New | – Modern, smart homes – Less fixes and maintenance – Some offer 1-year warranty on repairs and maintenance |
| Off Plan Property – Disadvantages | |
|---|---|
| 1. Risk of Delays | – Uncertainty of completion – Paying more rent while waiting for completion |
| 2. Risk of Bankruptcy | – Risk of cancellations – Developer might go bankrupt or fail to complete the development properly |
| 3. Waiting Time | – Waiting for the entire development and amenities to finish – No immediate ROI – Investors can’t move in or rent it out immediately – Can affect rental potential |
| 4. Nothing Tangible | – Buying based purely on brochures, photos, and videos – Sub-par quality – Amendments to floor plans, finishes & fixtures |
| 5. Market fluctuations | – Slow location growth – Market appreciate not guarantee – Pool of buyers may want to sell reaching completion to make a profit or because they cannot settle the payment, leading to oversupply |
| 6. Oversupply | – Can lead to fall in property value – High level of competition between investors for tenants |
Is it Good to Buy Off Plan Property in Dubai?
While researching for this post, we dove into countless discussions on Reddit and Facebook to see how people really feel about off plan investment in Dubai real estate.
Many voiced their frustrations about huge delays and broken promises, but a few did share success stories about their returns on investment. Here’s what we found…
How People Really Feel About Off Plan on Reddit
“I bought a finished apartment and an off-plan one. The off-plan one is already at 60% returns.”
“Bought an off-plan villa with Emaar in 2019, was supposed to receive it this September but it was delayed till 2024… This puts a big dent to my plans and finances, as I will have to continue renting for two more years.
When I tried to argue with them, they said that they’re within the contract details, because it mentions only the estimated handover date, and not the designated date… Should I just wait? Take it to court? Ask them for a replacement villa instead? If anyone can help, please lmk.”
“I bought off plan in January 2022. The property was supposed to be ready in March but wasn’t available till October 1st. There were loads of problems with getting bad information from the agent, different floor, different layout, confusion around payment schedule, a long snagging list. I was ready to sue them in the summer and take a big loss.
The property has however now been handed over and in value risen from 1.8 million to 2.3/2.4 so potentially a 30% rise in less than a year since moving from off plan to complete. So for me, it was a stressful experience and the agents in particular lied about everything. Financially though it has worked out well.”
So, Should I Invest in an Off-Plan?
The reality is, off plans in Dubai are not slowing down.
In “Where are Property Investors Putting Their Money in 2025,” off plan property accounted for 67% (vs ready made property 33%) of total sales in 2024, and 65% (vs ready made property 35%) in 2025.
The numbers tell a compelling story: Dubai’s investors are betting big on tomorrow’s real estate developments, showing a clear preference for future projects over existing properties.
If you can take on the risk, the long waiting period and the hassle of unexpected surprises, off plan real estate investments on the right development can be worthwhile.
How to Reduce Risk When Buying Off Plan
Though some investors have faced difficulties with off plan developments, there are strategies to minimize your risk when dealing with Dubai developers.
1. Check Developer’s Track Record
Look into Dubai developers history and see what kind of reputation they have. Have they finished past projects on time? Are those projects high quality?
Read reviews and feedback from previous buyers to get a sense of how reliable they are.
2. Review Sale Purchase Agreement (SPA) Thoroughly
The SPA is a really important document that lays out all the terms of your purchase. Make sure you read it thoroughly to understand what you’re agreeing to.
Will you be compensated for any unexpected or unscheduled delays? Is the developer registered with DLD?
An escrow account is a government account that collects all investors’ funds to build that project. Is there an escrow account for funds to be transferred? Absence of escrow account is a red flag.
3. Payment Plan Looks Too Tempting
Attractive payment plans can make an off plan look like a great deal, but be on the lookout for hidden costs.
4. Hire a Property Lawyer to Review the SPA
They can spot any unclear or unfavorable terms that could be risky for you. They can also negotiate better terms and make sure the contract protects you.
5. Learn from Facebook and Reddit Discussions
This is seriously helpful.
Tap into the minds of experienced investors through Facebook forums and Reddit discussions. Their insights about Dubai developers can help you avoid potential challenges and choose more wisely.
Making Your Decision
Off plan property can an attractive investment in Dubai real estate as investors often benefit from initial appreciation by getting in early, but success requires careful due diligence on Dubai developers, market knowledge, and risk management. Make sure you’re ready for the journey, and prepared for both the opportunities and challenges ahead.
