Buying off-plan in Dubai: escrow and project checks

Buying a property before it's built understandably makes people nervous. Dubai's escrow rules exist specifically to reduce the risk of a developer collecting payments and not delivering, and they're worth understanding before you pay a first instalment.

Why escrow accounts exist

Developers selling off-plan units are required to deposit buyer payments into a project-specific escrow account regulated by the Dubai Land Department, rather than taking the money directly. Funds are released to the developer in stages, tied to verified construction progress, not handed over as a lump sum. Before registering a project for sale, a developer must also meet a funding guarantee, currently set at 30% of the project value, met through one of three routes: construction already completed to that value, a bank guarantee, or a cash deposit.

Oqood: your interim registration

Off-plan purchases are registered through Oqood, the DLD's system for recording an interim ownership interest before the final title deed is issued at handover. It's what creates your official paper trail while the building is still going up.

Checking a project

The Dubai Land Department publishes a project registration service where a project's registration and developer details can be checked. Ask us for the project's registration details, and we'll help you confirm its status through the official channel before you commit.

Before you pay a first instalment, it's worth being able to tick each of these:

• The project is registered with the DLD and the developer is licensed
• The escrow account details appear on the sales contract
• The payment plan is tied to construction milestones, not just dates
• Your Oqood registration is issued in your name after the first payment
• You know the handover date and the developer's completion record
• You have an estimate of the service charges after handover

What escrow does and doesn't cover

Escrow protection reduces the risk of your money being misused for something other than the project you paid into. It doesn't guarantee the project will complete on schedule, that you'll see a particular return, or an immediate refund if things go wrong, so treat it as one safeguard among several, not a substitute for due diligence on the developer and project.

Reviewed 7 September 2026, against the Dubai Land Department's project registration service and broker guide. Requirements can change between projects and over time; confirm the specifics of any project with us before committing funds.