UAE Property: ‘Is it a good time to buy off-plan in Dubai?’

Luxury villas in Dubai recorded nearly 10 per cent annual gains in the second quarter of 2025. Bloomberg

Question: I am interested to know whether now is still a good time to buy off-plan in Dubai, or should buyers wait for secondary-market discounts? GP, Dubai

Answer: Despite the price appreciation over the past few years, I believe now is still a great time to buy a property in Dubai because the market is not going to slow down any time soon. Let’s look at the off-plan market first.

Dubai’s off-plan market remains highly appealing for long-term investors and occupants alike, thanks to attractive pricing, payment flexibility and robust end-user demand.

Mid-market and suburban communities such as Jumeirah Village Circle and Dubai South saw asking prices surge over 20 per cent year-on-year in the second quarter of 2025, while luxury villas recorded nearly 10 per cent gains. Against this backdrop, off-plan projects continue to offer developers’ incentives that secondary resale cannot match.

Some developers absorb Dubai Land Department transfer fees (4 per cent of value) through discounts and other benefits. These alone narrow the gap between launch and resale by 3 per cent to 5 per cent. When you add post-handover payment plans that defer up to 40 per cent to 60 per cent of the purchase price post completion, off-plan becomes an even more compelling proposition.

With as little as a 5 per cent to 10 per cent down payment at reservation, followed by milestone payments tied to the payment plan, topping out and handover, buyers can hedge against further interest rate reductions. This staged cash flow is invaluable in today’s volatile mortgage market, which is pegged to the US Federal Reserve, allowing you to secure tomorrow’s pricing without locking up your entire capital.

Secondary market “bargains” are around, but they are few and far between. When you do find one, they are typically 3 per cent to 5 per cent below launch rates pre handover but these prices vanish within weeks as handover approaches and investor appetite spikes.

Buying from the resale market makes sense only if you need immediate occupancy, rental income from day one, or wish to avoid any off-plan late delivery risk.

Negotiating with an emotional seller can also sometimes prove difficult, especially if they have unrealistic valuations of their property.

The Dubai real estate market has for some time been dominated by off-plan sales. For investors focused on maximum capital appreciation and cash flow management, off-plan remains the best choice. But remember to choose master-planned, blue-chip communities with strong presales and track records. Insist on escrow-backed projects and documented completion guarantees in the sales and purchase agreements.

In summary, off-plan today locks in future growth at current prices, while resale must compete on limited timing-based discounts and immediate yield needs.

The market is in good health and so as long as your needs are met, you shouldn’t go wrong.

Q: I’ve received my annual service charge statement for my Dubai apartment and the fees have jumped by over 20 per cent compared to last year. There’s no detailed breakdown and am uncertain whether these increases are justified.

What rights do I have as an owner to challenge or appeal against these charges? How can I ensure full transparency over how they’re calculated? GW, Dubai

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A: Under Dubai’s Strata Law (Law No 27 of 2007, amended by Law No 6 of 2019), every jointly owned property must be managed transparently. Here’s how you can enforce your rights:

Obtain the detailed budget from the managing agents or developer. You should ask for an itemised service charge budget, showing line-by-line costs (security, landscaping, cleaning, utilities and reserve fund contributions). Once you know the details, submit a request to the managing agent or developer. They should respond within 15 days.

Review the owners’ association governance. Have you ever attended an annual general meeting? You should receive at least 15 days’ notice of an AGM, along with all budget documents.

As an owner, you have voting rights on the proposed budget. If the majority rejects it, the managing agent must revise and circulate a new proposal.

Join or call an extraordinary general meeting (EGM).

An owners' association can be formed when at least 80 per cent of units are sold. Owners can register an association with the Dubai Land Department (DLD).

Owners representing at least 25 per cent of the total unit value can call for an EGM to address specific issues – for example, revising service charges or replacing the managing agent.

If the AGM or EGM processes fail or you do not have access to budgets, you can escalate to the Dispute Resolution Committee by filing a complaint.

You will need copies of all correspondence, AGM notices and your formal budget breakdown request.

To strengthen your case, you will need some document comparisons, so benchmark against neighbouring communities to show how much they pay per square foot.

Check the accounts yourself if you suspect misallocation such as duplicate invoices, or hire an independent auditor – the costs may be recoverable.

Find out whether others in the building feel the same and if so, co-ordinate with other concerned owners because sometimes group complaints carry more weight.

Timelines to be aware of are: 15 days to receive the budget after a written request, AGM held annually (with 15 days' notice) and 30 days to file a dispute after the AGM vote.

Insisting on full transparency, leveraging your owners' association rights and, if necessary, appealing to the DLD should ensure service charges remain fair and reflective of actual costs.

The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to [e-mail]