Off-Plan Property

Off-plan property is real estate purchased before or during construction, sold by developers with payment plans tied to construction milestones, offering below-market entry pricing but carrying completion and developer risk.

Payment Structure ExamplesPlan Distribution
10/9010% down, 90% at handover
20/8020% during construction, 80% completion
40/6040% construction, 60% handover
50/50 post-handover50% construction, 50% over 2-5 years post-completion


Investor AdvantagesBenefit
Price discount10-20% below completed value typical
Payment flexibilityInstallments reduce capital requirement
Specification choiceEarly buyers select preferred units
Appreciation potentialValue growth during construction
Risk FactorsExposure
Completion delayConstruction timeline overruns
Developer defaultProject abandonment risk
Specification changesDelivery may differ from marketing
No rental incomeZero yield during construction
Market downturnValue may decline before completion

Related Terms

Oqood (Off-Plan Contract Registration)Interim Registration (Oqood vs. Title Deed)Escrow Account (DLD-Mandated)Trust Account (Escrow for Off-Plan)Assignment of ContractAssignment of Contract (Off-Plan Resale)HandoverReady PropertyDeveloper Obligations

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