Process of Purchasing Property in Dubai

Buying an off-plan (primary market) property in Dubai follows a clear step-by-step process. In this article we outline the process of purchasing property in Dubai, focusing on off-plan developments (projects still under construction). Off-plan purchases involve buying directly from the developer before the property is completed. Below is the general process, from reserving your unit to registering your ownership.

Reservation

After selecting a developer, project, and unit, the first step is to reserve the property. This involves:

• Offer to Purchase: The developer issues a Reservation Form (also called an Offer to Purchase or booking form) containing your details, the chosen unit information, price, payment plan, and estimated completion date.

• Reservation Deposit: Submit the form along with a reservation deposit (often around USD 10,000, depending on the project). This holds the unit in your name.

• Down Payment: Once reserved, you pay the initial down payment (usually 20% of the property price, sometimes as low as 10%) according to the payment plan.

• Dubai Land Department Fees: Pay the 4% DLD registration fee (of the property price) and the developer’s administration fee (typically AED 3,000) for registering the sale. These fees are paid at reservation time so the developer can register your contract.

• Escrow Account: All payments (deposit, down payment, and future installments) must be made into the project’s official escrow account (monitored by the Dubai Land Department). This ensures funds are released to the developer only as construction milestones are met.

For more details, check out our video guide on the primary market property purchase process in Dubai.

Sales and Purchase Agreement

After reservation, you and the developer sign a formal contract. The Sales & Purchase Agreement (SPA) is a legally binding document that includes all transaction details. Key points:

• Contract Details: The SPA lists buyer contact info, project and unit specifications (size, layout, materials), the total price, payment schedule, and completion/handover date.

• Signing Process: You sign two copies of the SPA; the developer then signs, stamps, and returns one copy to you. Keep your signed copy for your records.

Oqood Registration

Within 60 days of signing the SPA, the developer registers your purchase with the Dubai Land Department (DLD) using the Oqood system. Oqood is DLD’s off-plan registration system, which provides a digital certificate of your initial sale contract. You’ll receive the Oqood document by email (and can download it via the Dubai REST app).

Important points:

• Ownership Record: The Oqood certificate lists you as the buyer of the off-plan unit and serves as proof of ownership during the construction phase.

• Completion: The Oqood remains your primary ownership document until the project is completed and fully paid. At handover, DLD issues the final title deed in your name.

Buying from Anywhere

The entire off-plan buying process can be done remotely—no physical presence in Dubai is required. You do not need a local representative or Power of attorney.

For example:

• Reservation agreements and the SPA can be signed digitally or via courier.

• Payments (reservation deposit, down payment, and installments) are transferred to the developer’s approved escrow and DLD bank accounts online.

• The signed SPA is couriered back and forth as needed.

• You will receive your Oqood certificate by email and can download it through the official Dubai REST app.

For clarity, purchasing secondary market property in Dubai (buying a completed, ready property from an existing owner) follows a different process focused on title-deed transfers at the DLD. However, like off-plan purchases, the secondary-market process can also be managed remotely once the required documents are in place.

Agent’s Commission

When buying directly from a developer, the agent's or consultant's commission is typically covered by the developer. This means you, as the buyer, generally do not pay any brokerage fee for the off-plan transaction.

This overview covers the primary (off-plan) sales process in Dubai. In future posts, we will explain how to choose the right developer, project, and unit for your investment. In the meantime, you now know the key steps: reserve the property, complete payments and fees, sign the SPA, and obtain your Oqood—the fundamental process of purchasing property in Dubai in the primary market.