Navigating the Choice: Off-Plan and Ready Homes in Dubai

Off Plan Properties AIAug 14, 2025

The Investment Landscape: Off-Plan Properties vs. Completed Homes

Quick answer: Discover the key differences between off-plan and ready homes in Dubai to make an informed investment decision.

When considering your next property investment in Dubai, the choice between off-plan assets and finished homes can significantly influence both your financial strategy and living experience. Off-plan properties typically come with savings potential, but they also involve varying degrees of risk. Let’s break it down with some numbers.

Quick math: Off-plan properties can offer discounts as high as 15-20% compared to completed homes.

Initial Costs: Understanding What You’ll Pay

Purchasing off-plan can require a lower upfront payment, often around 20% of the total property price. In contrast, if you opt for a ready property, you’ll typically need to account for the full price upfront, as well as additional fees like the Dubai Land Department (DLD) fee of 4%.

Pro tip: Don’t forget to factor in Oqood registration fees for off-plan sales, which can vary between AED 1,500 and AED 3,000.

Financing: Mortgage Considerations

Many buyers lean towards mortgages for off-plan purchases, and the Down Payment to Value ratio (LTV) can often be 80%. This means you’ll retain liquidity as you build your asset. For ready properties, LTV can also be favorable but often comes with stricter criteria and interest rates that can start at 4.5%.

Example Calculations

If you’re considering an off-plan property priced at AED 1.5M, with a 20% down payment and a rate of 4.25% over 25 years, your estimated monthly payment would be around AED 7,689.

Time to Handover: What to Expect

Handover timelines can be a dealbreaker. Off-plan properties usually take 2-4 years depending on the developer and project specifications. On the other hand, if you choose a completed property, you can move in as soon as you close the deal.

Maintenance Costs: Budgeting for the Future

While off-plan properties may come with attractive initial rates, you should also consider service charges and potential snagging costs after handover. These can range widely, often between AED 10 to AED 25 per square foot annually.

Watch out: Not all developers handle snagging efficiently, so keep an eye on that process.

Rental Yields: Potential Returns

The rental landscape varies between the two options. Off-plan properties might offer yield ranges from 5-8%, especially if they’re situated in emerging areas. With ready properties, yields are typically slightly more predictable due to immediate accessibility.

Pro tip: Check the average rental prices in the area to ensure the property remains competitive.

Investment Strategy: Which One Should You Choose?

Your decision should align closely with your investment goals. If you’re looking for rapid returns, investing in completed homes might be your best bet. However, if you’re planning long-term, the potential discounts with off-plan properties can be highly appealing.