Foreigners interested in buying off-plan property in Dubai can do so in designated freehold areas. These areas, first listed in 2006 and expanded over time, allow full ownership without time limits. Non-residents do not need a UAE visa for this process, and a valid passport is enough for registration, making it accessible for international buyers.
The process from reservation to receiving a title deed involves several steps, including booking, signing a Sale and Purchase Agreement (SPA), and registering the sale with the Dubai Land Department (DLD). Buyers should be aware of the fees involved, such as the 4 percent DLD registration fee, which is typically passed entirely to the buyer in off-plan contracts.
Can I buy without UAE residency?
Yes. Non-residents can buy in designated freehold areas. DLD registration needs a valid passport.
Who can buy off-plan in Dubai: foreigners, non-residents and the freehold areas
Foreigners can own property in Dubai only in designated freehold areas. These areas include Dubai Marina, Palm Jumeirah, and others listed in Regulation No. 3 of 2006. The law permits full freehold ownership or leasehold up to 99 years in these areas (Freehold in designated areas). Emirati and GCC citizens, however, can buy property anywhere in Dubai.
What you need as a non-resident: passport and SPA
Non-resident foreigners do not require a UAE visa to purchase off-plan properties. A valid passport is sufficient for registration purposes (Passport accepted for non-residents). The Sale and Purchase Agreement (SPA) is the primary document needed for the transaction, and the developer registers the sale with the DLD. When preparing to buy, ensure your passport is valid and ready for submission. It’s also wise to review the SPA carefully, possibly with legal assistance, to understand all terms and conditions before signing.
How to buy, step by step
- Choose your project: select an off-plan project in a designated freehold area, where foreign nationals can own property outright.
- Pay the booking amount: secure your unit with the booking amount set by the developer.
- Sign the reservation form: this confirms your unit, price and payment plan.
- Pay the down payment and DLD fee: settle the down payment along with the Dubai Land Department registration fee.
- Sign the Sale and Purchase Agreement (SPA): the main contract between you and the developer.
- SPA execution: the developer countersigns and executes the SPA.
- Oqood registration: the developer registers your purchase with DLD within 90 days.
- Pay your instalments: make each payment on schedule into the project’s official escrow account.
- Handover and title deed: once the project is complete, receive your keys and your title deed.
How escrow protects your instalments
In Dubai, all payments for off-plan properties must go into a project’s escrow account, which is held by a DLD-approved bank. This account ensures that funds are released to the developer only as construction milestones are verified by the bank’s engineer (Released per verified construction stage). Additionally, 5 percent of the escrow account is retained for one year after the units are registered in buyers’ names to cover any defects (5% retained for 1 year after completion). Buyers should verify the escrow account details with the developer and ensure all payments are made to the correct account. Understanding the escrow process provides peace of mind that your investment is secure and that funds are used appropriately.
Every fee and when you pay it: 4 percent DLD fee, Oqood, knowledge and innovation fees, trustee, mortgage, broker
When buying off-plan, several fees are involved. The DLD registration fee is 4 percent of the sale value, typically passed entirely to the buyer in most contracts, although legally it is shared unless agreed otherwise (4% of the sale contract value). Oqood registration incurs a 2 percent fee for both buyer and seller, plus AED 10 each for knowledge and innovation fees, and a AED 1,000 developer registration fee. Mortgage registration costs 0.25 percent of the loan amount, with additional trustee fees. Broker commissions are by agreement, with 2 percent being common practice. Buyers should budget for these fees and confirm the exact amounts with their broker or developer. Understanding the timing of these payments is important to avoid any delays in the registration process.
| Fee | Amount | Timing |
|---|---|---|
| DLD Registration | 4% of sale value | At registration |
| Oqood | 2% seller, 2% buyer + fees | Within 90 days of SPA |
| Mortgage Registration | 0.25% of loan amount | At mortgage registration |
| Broker Commission | By agreement | After registration |
Selling before handover: what the law allows and what developers require
Reselling an off-plan property before handover is legally permitted with a No Objection Certificate (NOC) from the developer (Resale before handover is lawful). However, developers often impose conditions, such as requiring a certain percentage of the property to be paid off before granting the NOC. The specifics of these requirements can vary, so it’s important to confirm with the developer. Fees for the NOC are limited to DLD-approved administrative costs. Buyers should inquire about these conditions early in the purchase process to avoid surprises if they decide to sell before handover.
Buying from abroad
Dubai Courts can notarise a power of attorney by video call (Resolution 137/2022). DLD’s fully digital sale needs an Emirates ID. Whether you can e-sign the SPA depends on the developer.
Mortgages
UAE Central Bank rules cap off-plan loans at 50% of the property value for all buyers (Circular 31/2013). Lender approval varies.
Visas
Residency rules require a completed property, so an off-plan unit may not qualify before handover. We make no visa promise.
Home-country rules
For tax and legal rules in your home country, check with your home-country adviser.
What the market looks like now: prices and payment plans across the live register
VILA’s register tracks 1,000+ live off-plan projects from 230+ developers, with the entry price, payment split and handover date of each one, refreshed from the developers’ own price lists. Browse the live lists: projects under AED 1M, 10 percent down payment projects and post-handover payment plan projects, or read the current figures on the live market data page. Buyers should see these options to find a project that fits their financial plan and timeline.
What this means for a buyer
- First-time investors: With a wide range of projects available under AED 1 million, first-time investors have affordable entry points into the market.
- Flexible payment options: Buyers can take advantage of flexible payment plans, with many projects offering low initial deposits and post-handover payment plans.
FAQ
What happens if I default on an off-plan payment?
Under the original 2008 law, if a buyer defaults, the developer can cancel the contract after a 30-day notice and refund the buyer, deducting up to 30 percent of the paid amount. Check the current legislation for any amendments. Buyers should be aware of their obligations and maintain communication with the developer to address any financial difficulties promptly.
VILA Properties · ORN 45990 · BRN 55719
VILA Properties is a RERA licensed brokerage (ORN 45990, BRN 55719) specialising in Dubai off-plan for local and international buyers, with 1,000+ projects, payment plans and an ROI calculator at vila.ae and in the VILA Properties app. Contact info@vila.ae or +971 50 570 6356.
This article is editorial commentary and market analysis, not a property advertisement or investment advice. All specific property information should be verified with the developer and the Dubai Land Department.
