Buy Off-Plan Offices in Dubai & The UAE

Buying Off-Plan Offices in Dubai & The UAE: How The Local Market Works and What Investors Need to Consider in 2025

In recent years, the UAE has been considered one of the safest and most predictable markets in the world. In 2025, the country's capital once again topped Numbeo's global safety ranking, with some other UAE cities also making it into the top ten, confirming their attractiveness from a business perspective and minimal risks for investors.

Safety is not an abstract indicator, as it directly affects the stability of tenant flows, the quality of building management, and the cost of insurance, and thus the overall return on investment.

Growth here is supported not only by demographics and capital migration, but also by the macroeconomy. The World Bank and other expert institutions forecast GDP growth in the UAE in 2025 thanks to a strong non-oil sector and structural reforms.

At the emirate level, this is reflected in statistics — in 2024-2025, Dubai has already demonstrated record transaction volumes. For investors, this means liquidity of entry and exit, as well as a wide variety of tenants in the office segment.

Why Buy Off-Plan Commercial Properties in Dubai & The UAE

Such purchases involve acquiring rights to a future office or other commercial space in a project under construction. For investors, the key benefit here is a discount on the price of finished assets, as well as the opportunity to secure a location and floor space in premium business clusters even before the completion of a particular project.

For developers, this means access to project financing through escrow accounts and a more even flow of funds. As the project nears completion, buyers pay installments, and funds are released from the escrow account to the developer only as specific stages of construction are completed.

This reduces the risk of non-completion and protects the investor's capital. In Dubai, this system is regulated by a special law on escrow accounts and administered by RERA and the Department of Land Development (DLD).

Buying Off-Plan Residential & Commercial Properties: The Key Differences

The most important difference here is the tax regime. Commercial property transactions in the UAE are subject to 5% VAT on both sales and rentals, while residential property is often exempt from tax or subject to a zero rate if it is new.

For offices, there is a special procedure for calculating VAT on certain secondary sales — this is described in the guidelines of the Federal Tax Authority (FTA). These features affect the cost of the property, the structure of payments in escrow, and possible financial problems for the investor, especially at the time of transfer of the ownership.

The second important difference is operating and management costs. Commercial buildings often have higher maintenance costs because they require different engineering, security, and traffic management systems. In Dubai, the calculation and transparency of such costs for jointly owned properties are regulated by the JOP law and the Mollak digital platform. There, bills and fee indexes are consolidated, and for office space owners, this is a tool for controlling OPEX and comparing properties on the market.

Third is the legality of space use. An office cannot be legally occupied without a valid license from the relevant regulator, and the lease agreement must be registered in a special system. For example, in Dubai, this is the Ejari system, and in Abu Dhabi, it is the DARI system (formerly Tawtheeq). This is not just a formality, but legal protection for lease agreements and a prerequisite for connecting some utilities.

And finally, financing. Generally, banks take a stricter approach to the payment of commercial assets than in the case of residential properties, and developer installment plans for buying offices rarely involve long payment periods after the project is completed. In practice, this means a higher percentage of the investor's own funds at the outset, as well as the need to plan budgets and deadlines in advance so that the legal commissioning of the project coincides with the actual launch of the office.

Legal Guarantees When Buying Off-Plan Offices in Dubai: RERA, Escrow Accounts, Oqood, Maintenance Costs, Lease Terms

Dubai was one of the first emirates to introduce a separate law on escrow accounts for property projects.

Under Law No. 8 of 2007, payments from buyers and financing banks go into a special project account, and all the withdrawals from it are strictly linked to the actual progress of construction, which must be confirmed by independent technical control.

The registration of rights to properties under construction is carried out through the Oqood DLD system — in this case, the buyer receives interim registration until the document of title is issued after the completion of the project. For the developer, Oqood is a mandatory stage of project registration, and for the investor, it means legal confirmation of their rights at the construction stage.

After completion of construction, jointly owned properties are subject to the 2019 JOP law, which specifies the management structure, building maintenance accounts, and the obligations of owners. There is also the Mollak platform, which is used to record and track payments. By default, the owner is responsible for paying building maintenance and operating fees, unless otherwise specified in the lease agreement. For commercial property investors, this is key to forecasting net income.

Lease agreements here must be registered through Ejari — today, this service is fully digitized, and large registrars are creating new submission channels. This is useful for the buyers of off-plan properties who plan to lease the property immediately after obtaining ownership.

How to Buy Off-Plan Offices in Dubai: from Reservation to Commissioning

In practice, this process involves several stages. First, the investor agrees on the commercial terms with the developer and signs a special agreement specifying the specific property, its price, and the basic installment terms. After that, the SPA is prepared and signed, and the transaction is registered with Oqood — at this stage, a part of the price and the DLD fee are usually paid.

As already mentioned, all payments during the construction phase go to the project's escrow account to protect the buyer's interests. As the project nears completion, an inspection is scheduled, a snag list is drawn up, and then the property is handed over and title deeds are issued.

If the buyers plan to use the property as their own office, they simultaneously apply for a license and begin negotiations with the municipality and civil defense authorities. For rental purposes, standard commercial documentation is prepared and the contract is registered with Ejari.

How Everything Works in Abu Dhabi: Local Features & Important Updates in 2025

In the UAE capital, property purchases are regulated by the Department of Municipalities and Transport (DMT) and the Abu Dhabi Real Estate Centre (ADREC), which was established under its auspices.

For a long time, Law No. 3 of 2015 was in force here, which made the use of “escrow accounts” mandatory for development projects. The DARI service ecosystem is used here — it provides digital registration of lease agreements and other transactions. For commercial investors, everything here is similar to Dubai — the same escrow accounts and mandatory registration of contracts.

In 2025, Abu Dhabi updated its legal framework with the adoption of Law No. 2 of 2025. It amended regulations, strengthened ADREC oversight, and introduced a new mechanism whereby, in the event of significant violations by the buyer, the developer has the right to terminate the contract without prior recourse to court or arbitration.

However, for a bona fide investor, this is not a deterioration of conditions, but a clear way to resolve disputes and accelerate capital turnover in general. This change underscores the desire for transparency and balance between the interests of the developer, the buyer, and the financing bank.

In practice, commercial offices in key areas of Abu Dhabi — on the islands of Al Maryah and Saadiyat, or in business clusters near the airport — are often designed for corporate tenants with high requirements for building quality and energy efficiency.

Other Emirates of The UAE, Each with Their Own Characteristics

In 2022, the Sharjah authorities allowed foreigners to own property in certain areas, removing historical restrictions on the term of ownership. This expands opportunities for investors, but when buying off-plan commercial properties, it’s necessary to carefully check the status of the site and the permitted types of use. The fact is that Sharjah's urban planning policy is traditionally more conservative in this regard.

In Ajman, regulation is carried out through the Department of Land and Real Estate Regulation and the ARRA agency. For properties under construction, there are also escrow accounts and payments linked to specific stages of construction, while Ajman One digital services simplify registration. This makes small markets more accessible to high standards of management and control.

In Ras Al Khaimah and Umm Al Quwain, the practice of escrow accounts and registrations is also developing, often in conjunction with the management of free economic zones. Investors should understand that each jurisdiction in the UAE is a separate world with common federal rules but with its own procedures and set of services at the emirate level.

Commercial Property Supply in The UAE Market: How Developers Are Adapting & What This Means for Real Estate Investors

The demand of recent years has ultimately led not only to price and volume growth, but also to management changes among developers.

Some of the largest developers have started to integrate contracting functions in order to better control construction timelines and costs, which speeds up access to funds from escrow accounts and, again, reduces the risk of delays.

For investors, this can be seen as an advantage in terms of predictability of deadlines and a reason to more carefully assess the developer's competence in a new segment.

Taxes & Fees: How to Incorporate VAT and Building Maintenance Fees into Your Financial Model

In commercial property transactions, 5% VAT is included in the total price and payment schedule. In the primary market, the tax is usually levied by the developer itself, and in certain secondary transactions, there is a special payment procedure, which is important for the regular flow of funds and accurate reporting.

In addition to VAT, the financial model should include the payment of property maintenance and the actual rate of operating expenses in the selected building. In Dubai, the aforementioned Mollak system increases the transparency of all this. It is precisely these points, VAT and maintenance fees, that are often underestimated by investors, who transfer their usual stereotypes of the residential property market here.

At the same time, correct accounting of taxes and OPEX makes it possible to realistically compare different projects and emirates without losing profitability on minor details.

Legal & Operational Risks: Where Problems May Arise, How to Solve Them

The main risk when buying off-plan properties is the risk of non-performance and delays. This risk can be mitigated by escrow accounts and registration with Oqood/DARI, but investors should always check the status of the land, the degree of completion of the project, the availability of project permits, the amount of information disclosure by the developer, and the history of its projects delivered on time.

It is important to look at who manages the property after completion and under what conditions, how maintenance fees are calculated, and whether the engineering systems are powerful enough for the tenants. Abu Dhabi has recently introduced a mechanism for out-of-court termination of transactions in the event of buyer bankruptcy.

This improves predictability and disciplines investors. In this case, the investor's team must arrange everything in such a way as to avoid technical delays.

Conclusion: When Is It Justified to Buy Off-Plan Offices, and What Approach Should One Take?

If the goal is securing a good location for your own office or attracting corporate tenants at the start of sales, buying off-plan commercial spaces can offer advantages in terms of cost and speed. However, this approach requires more serious management than conventional residential property transactions — VAT, building maintenance fees, readiness for a long cycle of client placement, and negotiations on long-term lease agreements must all be taken into account.

The UAE's regulatory environment, from escrow accounts and Oqood in Dubai to Abu Dhabi's reforms and digital rental systems, is designed to make this path transparent and secure, and to make the returns on commercial assets predictable. For investors, this means that you can confidently plan 7-10 years ahead and build your portfolio with peace of mind, but it is better not to skip the legal and financial aspects.

Popular Investors Questions of Buying Offices and Any Commercial Properties in Dubai & The UAE

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