Analysis, not enthusiasm

Off-plan or ready: how to choose in Dubai

Most first conversations with UK and European investors start with the same question: should I buy off-plan or buy something finished? The honest answer depends on what you want the money to do.

What you are actually choosing between

Buying off-plan means committing to a property before it is built, usually at launch pricing, and paying in stages during construction. Buying ready means paying in full (or with a mortgage) for a finished home you can live in or let straight away.

When off-plan makes sense

Off-plan is the preferred route for many seasoned investors in the UAE. It suits those who prioritise capital growth over immediate income, can commit capital for two to four years, and are buying from a developer with a proven delivery record. Launch pricing and staged payment plans allow capital to work harder, and in a rising market the asset can be worth materially more by handover.

It is also a favoured route for European investors looking to manage their tax exposure. There is no rental income to declare during construction, and the UAE levies no annual property tax, income tax or capital gains tax on individuals. Returns are typically realised on sale, giving investors greater control over when a gain arises. Home-country tax rules still apply, so specialist advice should always form part of the plan.

All payments are held in a regulated escrow account and released to the developer only as construction progresses. This protects investors from the most serious risks, but not from delays or a finished product that falls short. For that reason, the developer matters more than the brochure.

When ready makes sense

Ready property suits investors who want income now, want to see exactly what they are buying, or need a home for themselves or family. It is also the simpler route if you plan to use a mortgage, since UAE banks lend more readily on finished property.

Five questions that decide it

1. Do you need rental income in the next three years?
2. How long can the capital stay committed?
3. Will you use a mortgage?
4. Do you plan to sell before handover? If so, check the developer's resale rules, since many require a set share of the price to be paid first.
5. How much do you trust this specific developer to deliver on time and to standard?

We assess every project against our three tests: location, infrastructure and developer. If you'd like our view on a specific project, off-plan or ready, get in touch.

The real cost of buying property in Dubai

The asking price is not the price you pay. Here is every cost between agreeing a deal and holding the title deed, so you can budget properly from the start.

One-off buying costs

As a rule of thumb, budget around 6–7% on top of the price for a ready purchase with an agent, and around 4–5% for off-plan. We give every client a full cost sheet for their specific deal before they commit.

Ongoing costs

• Service charges: paid annually per square foot to maintain the building and community. They vary widely, so check them before buying, not after.
• Letting and management: if you rent the property out, a manager typically charges a percentage of the rent.
• Utilities and cooling: paid by the tenant if let, by you if not.

Tax

The UAE does not charge individuals annual property tax, income tax on rent or capital gains tax. That does not mean the income is tax-free for you: UK residents are generally taxed on their worldwide income and gains, so UAE rent and profits may still need declaring in the UK.

A property worth AED 2 million or more can also qualify you for the UAE's 10-year Golden Visa. Becoming a UAE resident does not by itself end your UK tax residency, so take specialist advice before making plans around it.

Figures here are a general guide and change from time to time. For costs on a specific purchase, ask us for a cost sheet.