Off-Plan vs Secondary Property in Dubai 2025

Compare processes and costs to choose the best path for you.

The market remains exceptionally active, with off-plan deals taking the majority of transactions this year while ready homes on the secondary market attract end-users and yield seekers. According to DXB Interact (2025), off-plan sales represented 66% of units sold in Dubai, making it the preferred choice for real estate investors. 

As a leading real estate agency in Dubai, Homesphere Real Estate helps you evaluate projects, payment plans, and risks so you can decide whether to buy off-plan properties or acquire a move-in-ready unit. One rule change every buyer should factor in: from 1 February 2025, banks no longer include the 4% DLD registration fee or broker fees in mortgages, which increases the cash needed at transfer (The National, 2025). 

Ready to buy Luxury Properties in Dubai that match your budget and goals? Contact Homesphere Real Estate for a tailored shortlist and fee breakdown. 

What is an Off-Plan Project?

An off-plan project is a property that is sold before it is completed. You buy directly from the developer (or an authorised seller) while construction is ongoing. Your purchase is recorded with the Dubai Land Department as an initial registration and this is done through the Oqood system for off-plan sales. Title is issued at completion and handover. 

Key features that define off-plan:

• Regulatory framework: Developers who sell off-plan and collect instalments from buyers must use a dedicated escrow account for each project. Funds are released in stages that match construction progress. This is set out in Dubai Law No. 8 of 2007.
  
• Documentation: You sign a Sales and Purchase Agreement (SPA) with the developer. The sale is recorded through Oqood as an initial registration until a final title deed is issued at completion.
  
• Payment flow: Instalments are paid to the project escrow according to milestones stated in the SPA.
  
• Warranties and liability: After completion, developers remain liable for structural defects for 10 years from the completion certificate and for certain installation defects for 1 year, under Dubai Law No. 6 of 2019.
  
• Ownership timing: You become the owner of record at final transfer and title issuance once the building is completed and handover is processed.

What is a Secondary Property?

A secondary property is a completed, previously owned unit that you buy from an existing owner. The transfer is executed at a DLD-approved Registration Trustee office, and the title deed is issued in your name on the day of transfer once fees are paid and documents are verified. 

Key features that define secondary:

• Regulatory framework: The Dubai Land Department oversees property transfers through a network of Registration Trustee centres that process document checks, fee collection and title issuance.
  
• Documentation: Buyer and seller agree and sign Form F (the standard DLD/RERA sale contract) that sets out price, timelines, commissions and penalties. A developer No Objection Certificate (NOC) is required before transfer.
  
• Payment flow: The buyer settles the price and pays the DLD transfer fee at the trustee office; once approved, the title deed is issued.
  
• Warranties and liability: If the building is still within the statutory periods, the remaining 10-year structural and 1-year installation liabilities continue to protect the unit, regardless of a change of ownership.
  
• Ownership timing: You receive the title deed immediately at transfer, so you can occupy or lease the property right away.

Costs You Should Plan For

Off-plan Buyer Costs in 2025

• Oqood registration fee: typically 4% of the purchase price + admin fees (varies from AED 40 to AED 580) + AED 10 Knowledge fee + AED 10 Innovation fee.
  
• Title deed issuance at handover: commonly AED 250.
  
• Mortgage registration (if financed at handover): 0.25% of the loan amount + AED 290 fee.
  
• Mortgage arrangement fees: usually around 1% of the loan amount (charged by the bank).
  
• Developer service charges and maintenance fees: after handover, you’ll need to pay annual charges based on project policy. In Dubai it can vary from AED 3 – AED 40 per sq.ft annual according to the property type, location, and facilities. 
  
• DEWA (Dubai Electricity & Water Authority) connection deposit – After handover, residents are required to pay a deposit of AED 2,000 for an apartment or AED 4,000 for a villa (refundable when you sell and disconnect) plus a small activation fee.
  
• Home Insurance (optional): can cost around AED 1,000 annually for an apartment. 

Note: For off-plan projects, buyers don’t pay for broker commission since it is the developer that pays the broker on the sale. 

Need help buying properties in Dubai? Homesphere Real Estate will coordinate end-to-end to make your experience easy and stress free. Contact us now!  

Secondary Market Buyer Costs in 2025

• Dubai Land Department transfer fee: 4% of the purchase price + AED 10 Knowledge fee + AED 10 Innovation fee. This is the biggest upfront cost aside from the property price.
  
• Registration Trustee fee: AED 4,200 for properties priced AED 500,000 and above; AED 2,100 below that threshold.
  
• Title deed issuance fee: commonly AED 250.
  
• Mortgage registration (if financed): 0.25% of the loan amount + AED 290 admin fee.
  
• Mortgage arrangement fees: usually around 1% of the loan amount (charged by the bank).
  
• Property valuation fee: Ranges from AED 2,500 to AED 3,500, required by banks to assess the property’s value.
  
• No Objection Certificate (NOC) from the bank: confirming the loan details – some banks charge between AED 500 and AED 5,000 for this service.
  
• Developer NOC: typically AED 500 to AED 5,000 plus 5% VAT, depending on the master developer.
  
• Property service charges (maintenance, utilities, etc.): In Dubai it can vary from AED 3 – AED 40 per sq.ft annual according to the property type, location and facilities.   
  
• Agency commission: can vary from 2-5% of the purchase price + 5% VAT, stated in the sale contract.
  
• DEWA (Dubai Electricity & Water Authority) connection deposit – AED 2,000 for an apartment, AED 4,000 for a villa (refundable when you sell and disconnect).
  
• Home Insurance (optional): can cost around AED 1,000 annually for an apartment. 

Off-plan Purchase Process

1) Reserve a unit and lock the offer

• Select the project and unit. The developer issues a reservation or booking form and a payment link or cheque instruction for the booking amount. 

Expression of Interest (EOI)
The EOI is submitted before a project officially launches. It signals your intent to buy a property without any legal obligation. For investors, it offers early access to preferred units or floor plans before they’re made public. Simply put, an EOI is a non-binding first step toward securing a property. Amounts vary from AED 20,000 to AED 50,000 depending on the developer. 

• Complete KYC (Know Your Client) procedure with passport or Emirates ID as required by the developer. The KYC is designed to verify the client’s identity, assess their risk level, and ensure that the transaction is not linked to illegal activities such as money laundering or terrorism financing.
  

2) Sign the Sales and Purchase Agreement (SPA)

• You sign the SPA with the developer. The SPA contains information on price, payment plan, milestone schedule, completion target, default clauses, and handover terms.

Pay the Downpayment
This is typically from 5–20%, as specified in the payment plan. It must be paid to the project’s registered escrow account per the SPA and official payment instructions. If the developer’s policy allows, any EOI or booking fee may be credited toward this amount; confirm the credit on the official receipt.

• The developer must register the sale in the provisional register with the Dubai Land Department. In practice this is via Oqood. DLD guidance states the SPA should be registered in the provisional register within 90 days of signing.
  

3) Ensure payments go only to the project escrow account

• For off-plan, developers must have a dedicated escrow account per project. Releases from escrow are linked to construction progress under Dubai Law No. 8 of 2007. Always verify account details before paying.
  

4) Construction phase: milestone payments and progress updates

• You continue paying per the SPA: construction-linked, time-linked, or a post-handover plan, all routed through the escrow. Keep receipts for each milestone. Reputable developers in Dubai update their clients on a regular basis through emails, social media, or buyer portals. Some buyers like to see the site occasionally to see how things are progressing.
  

5) Pre-handover preparation and inspection

• As completion nears, schedule snagging inspection and confirm any remaining installments. In Dubai, snagging is crucial to ensure that the property meets your expectations and the developer’s promises. If you will finance the handover balance, secure mortgage approval and plan for mortgage registration at DLD.
  

6) Handover and title issuance

• After final payments and snagging, the developer issues handover. You then receive your e-Title Deed after registration. After the snagging process, you can take ownership of your new home! 
  

Note: From 1 February 2025, banks no longer finance the 4% DLD fee or brokerage fee within mortgages, so plan additional cash on hand.

Looking to buy off-plan properties in Dubai? Homesphere Real Estate can guide throughout the whole process. Contact us today! 

Secondary (Ready) Purchase Process

1) Finance planning and search

• Select the property you wish to buy and contact the seller or real estate agent working with the property. It’s important to schedule a viewing of the property to make sure everything is in order. Some clients use home inspection experts to help evaluate the conditions of the property.
  

2) Offer and Sales Agreement (RERA Form F)

• Once price and terms are agreed, buyer and seller execute Form F, also known as the Memorandum of Understanding (MOU), the unified sale and purchase agreement issued by DLD/RERA. DLD hosts the official sale agreement template and requires sale registration through its e-services.
  
• In Dubai, typically all payments in the secondary market transactions are made at the time of ownership transfer only to protect both buyer and the seller. However, some owners can request a security deposit, typically 10% of the purchase price, held by the broker or conveyancer until transfer, as specified in the contract.

Note: when preparing the contracts, make sure the following information is mentioned such as, ownership transfer date, date of applying the transfer NOC, whether furniture and equipment are included in the property or not, details about keys and access cards among others. The DEWA bill should be settled on the day of the ownership transfer. Regarding service fees, these are calculated on a pro-rata basis on the day of the transfer.      

3) Valuation, NOC, and transfer booking

• For mortgaged purchases, the bank orders a valuation of the property.
  
• The developer’s No Objection Certificate (eNOC) is mandatory to proceed to transfer. DLD lists the eNOC from the developer (via Dubai REST) among the required documents for sale registration.
  
• On clearance, the Registration Trustee office schedules your transfer appointment.
  

4) Transfer at a DLD Registration Trustee office

• At transfer, seller and buyer visit the DLD to finalize the transaction and register the property ownership. You must pay government fees and complete registration. Key items:
  
  • DLD transfer fee
  • Registration Trustee fee
  • Title deed issuance fee
  • If mortgaged: Mortgage registration fee 
  • Agent commission
    

5) Title, keys, and immediate use

• Once DLD completes registration, your e-Title Deed is issued and keys are handed over. You can occupy or lease the unit immediately, subject to community procedures.
  

Key takeaways 

Both routes can be excellent depending on your objective. Choose off-plan if you want lower entry, flexible payments, capital appreciation and are comfortable waiting for the completion of the project. Choose secondary if you want immediate occupancy and cash-on-cash returns from day one. Whether you are thinking of buying a secondary property or an off-plan property, both models have costs and fees that need to be considered. 

• Budget for 7–15% Extra: Expect the total upfront costs (fees, commissions, etc.) to add about 7–12% on top of the property price. For example, buying an apartment at AED 1M could really cost around AED 1.1 M after all fees. 
• Get a Cost Breakdown: Before signing an MOU, have your agent provide a breakdown of all fees (DLD, agency, NOC, etc.) so you have a clear picture.
• Include Fees in ROI Calculation: Investors should treat these costs as part of the investment. When calculating your return on investment (ROI) or net yield, amortize the one-time fees over a few years. (E.g., if you spent AED 70k on fees for a property and plan to hold for 5 years, that’s an extra AED 14k per year expense equivalent). This will give you a realistic picture of your profit.
• Plan for Ongoing Costs: Factor the annual service charges and maintenance into your cash flow projection from day one. If a property has very high service charges relative to rent, it might impact its attractiveness as an investment.

Looking for luxury properties for sale? Contact Homesphere Real Estate today for exclusive access to Dubai’s best developments.