Off-plan explained

Escrow protects your money

Under Abu Dhabi's off-plan rules, as amended by Law No. 2 of 2025, each off-plan project needs its own escrow account with an approved trustee. Your instalments go into that account, not into the developer's general funds.

The developer cannot draw from escrow until at least 20 percent of the construction works are complete, verified by an approved engineering consultant. ADREC can allow earlier release only if the developer meets strict criteria and provides an unconditional bank guarantee. Escrow money cannot pay for the land or for broker commissions.

You can ask the developer, the bank or ADREC to confirm the escrow account of a project. If a developer is vague about it, that is your answer.

Check before you reserve

Registering interest in a launch now goes through ADREC's digital system on the Madhmoun platform, according to recent reporting. Marketing for off-plan units also carries a permit number, like any other advert.

• The developer is registered in Abu Dhabi and holds the licence for this project.
• The project has an escrow account, and you have the trustee's name.
• The unit is in a designated investment zone if you are a foreign buyer.
• The payment schedule, handover date and delay terms are in the sale agreement, not only in the brochure.

Payment plans

Payment plans differ by developer and by launch. A typical plan has an initial deposit at booking, instalments linked to dates or construction milestones, and a final payment at handover. The split can be front-loaded or back-loaded, and some developers offer a post-handover period. We will not quote a standard plan because there is none.

Read the plan against your cash flow. If you plan to take a mortgage at handover, remember that the Central Bank cap on off-plan lending is reported at 50 percent. Ask your bank how it treats the stage payments you have already made.

Fees still apply. The transfer fee and registration costs are due on top of the price, and some developers cover or reduce them as a promotion. Get any such promise in writing.

Handover and snagging

Handover is when the developer says the unit is ready. It is not the moment to relax. Before you accept the keys, inspect the property and write down every defect: paint, tiles, doors, water pressure, air conditioning, sockets, seals, balcony drainage.

That list is called a snag list. Give it to the developer in writing and keep a dated copy. Reasonable developers fix snags within an agreed period. Some buyers pay a professional inspector, which is worth it on a large purchase.

Guides report that the UAE requires a 10 year warranty on new developments against structural defects. Ask the developer to confirm what is covered, and for how long, in the agreement.

Delays and cancellations

Abu Dhabi regulation sets out what happens if a project is delayed or a unit is cancelled and resold, including refund rules and compensation. We have not summarised those figures here, because they are set by decisions that change. Ask us for the current rules for the specific project, and ask to see the clause in your agreement.

Do not pay anyone outside the escrow route the developer gave you. A request to pay a developer's instalment into a personal account is a warning sign.

Who it suits

Off-plan suits buyers who can wait, who have the instalments planned, and who are comfortable with the area. Buyers who need a rental income next year should look at completed properties instead. Awal's own focus is on properties with 7 to 9 percent rental yields, and we will tell you plainly when an off-plan launch does not fit that.

Off-plan or ready

The choice comes down to time, certainty and cash flow.

• Ready: you see what you buy, you can rent it sooner, and you know the service charge.
• Off-plan: a payment schedule over the build and a new unit, but a wait, and the finished property must match the plan.
• Both: the Madhmoun permit, the fees and your own budget still apply.