The off-plan property purchase process in Dubai. SPA, Oqood — what are they?

The first stage is choosing a property — an apartment, townhouse, or villa — in a developer project.

At this stage one analyzes, among others:

• project location,
• developer's reputation,
• payment plan,
• expected handover date,
• rental or resale potential,
• apartment layout, floor, view, and orientation,
• future infrastructure, transport, and neighborhood development, including directions outlined in the Dubai 2040 Urban Master Plan,
• conditions for any resale before handover.

After choosing a unit, the buyer makes a reservation. This usually involves paying a reservation fee or deposit, the amount of which depends on the developer's rules.

In selected developer launches, an EOI may also be used — an initial expression of interest in purchasing a unit, submitted before the final reservation. We explain in detail what an EOI is.

Reservation means that the chosen property is temporarily assigned to the buyer, and the developer prepares the next steps of the transaction.

After reservation, the buyer goes through the standard KYC procedure, i.e. Know Your Customer. This is a basic client verification required when purchasing property.

The most commonly required documents are:

• passport copy,
• contact details,
• address of residence,
• basic information regarding the source of funds,
• sometimes additional documents required by the developer's compliance department.

Next, the buyer makes the first required payment. In off-plan projects this is most often between 10% and 20% of the property value, although the exact amount depends on the project and the developer.

At this stage there is also often a registration fee for the Dubai Land Department, i.e. 4% of the property value. In selected projects developers sometimes cover this fee as part of a promotion, but this is not a market-wide standard.

There may also be an Oqood registration fee, most often between around AED 1,000 and AED 5,000, depending on the project and the developer's procedures.

After the first required payment is received and the KYC documents are completed, the developer usually prepares and sends the buyer the SPA, i.e. the Sales and Purchase Agreement.

The SPA is the actual sale agreement between the buyer and the developer. It is one of the most important documents in the entire off-plan purchase process.

The SPA defines, among other things:

• buyer's data,
• developer's data,
• unit number and description,
• purchase price,
• payment schedule,
• planned project completion date,
• handover conditions,
• rights and obligations of both parties.

In practice the SPA formally confirms the conditions of the property purchase. Before signing, it is worth carefully checking the buyer's data, the price, unit number, area, payment plan, and the expected project completion date.

The exact order may vary by developer, but in many cases the SPA is sent only after the first required payment has been made and the basic client verification has been completed.

Oqood is the registration system for off-plan properties at the Dubai Land Department.

In simple terms, Oqood is confirmation that the purchase of a property under construction has been registered in Dubai's official system.

For the buyer this means that their rights to the property are formally recorded even before construction is completed.

Oqood is important because it:

• confirms registration of the off-plan purchase,
• links the buyer to a specific unit,
• increases transaction transparency,
• is part of the official Dubai Land Department system,
• may be needed for any later resale before property handover.

Once the project is completed and the property is finally handed over, Oqood is replaced by the proper title of ownership, i.e. the Title Deed.

One of the biggest advantages of off-plan purchases in Dubai is the flexible payment plans.

Instead of paying the entire amount upfront, the investor pays subsequent installments according to the schedule set by the developer.

An example plan may look like this:

Some projects also offer a post-handover payment plan. This means that part of the property price can be paid off after the keys have been handed over.

For investors this is particularly interesting, because the property may generate rental income during this period.

In off-plan projects, buyers' payments usually go to a dedicated escrow account assigned to the specific project. This is a very important element of security.

Funds in the escrow account are tied to the progress of the development and controlled in line with Dubai's real estate regulations. As a result, buyers' money does not go to the developer's regular operating account but stays assigned to the project.

In practice this means greater transparency and better protection of the buyer's funds.

Once construction is completed, handover takes place — the formal property handover.

At this stage the buyer typically:

• makes any final payment,
• carries out a property inspection,
• signs the handover documents,
• receives the keys,
• finalizes the formalities related to ownership.

Once the project is completed and the registration process closed, the owner receives the Title Deed, i.e. the official title of ownership of the property.

This is the document confirming full ownership rights to the completed property.

In many cases yes, although it depends on the developer's rules.

Most often the developer requires the buyer to have paid a certain percentage of the property value before they can resell it on the secondary market before handover.

It is also often required to obtain a NOC, i.e. a No Objection Certificate from the developer.

That is why already at the project selection stage it is worth checking:

• after what percentage of payment the property can be resold,
• whether the developer allows assignment,
• what the administrative fees are,
• what the conditions for obtaining a NOC are,
• whether the project has real liquidity on the secondary market.

This is especially important for investors buying with the intention of reselling before project completion.