Off-plan launch price Dubai vs a later phase

Off-plan launch price Dubai: buy at launch or later

Andy Mederos · Broker and investor in Dubai · Updated: · 10 min read

Quick answer

If you are weighing the off-plan launch price in Dubai against waiting for a later phase, the short answer is that it depends on each project and each moment. The developer sets the opening price on that day’s list. If you accept a unit and sign the SPA, that price is locked in. A later phase may come out with another list: higher, similar or with different terms. There is no official percentage by which prices rise from one phase to the next. At launch you usually have more units to choose from and, sometimes, an opening incentive, such as the developer covering part of the 4% DLD fee. In return, you decide with less of the building to see and the keys are further away. Waiting lets you see more of the building, but the most sought-after floors and views may already have sold.

In this guide8 sections
  1. What a launch is and what a phase is
  2. How the price is set: list, EOI, allocation and SPA
  3. Advantages of buying at launch
  4. Risks of buying at the start
  5. What changes if you wait for a later phase
  6. How to decide in your case
  7. Things to keep in mind
  8. Frequently asked questions
The developer sets the price of each phase. There is no official percentage increase from one phase to the next.
What you compareAt launchIn a later phase
PriceThe list for that openingThe list for that phase; each project sets it
UnitsYou usually have more to choose fromThe most sought-after may already have sold
Building to seeLittle or noneMore progress and more to judge
IncentivesSometimes the developer covers part of the 4% or another opening termIt depends on that phase
Time to the keysSet by the SPA date; usually the longest waitMay be shorter if work has already advanced
RentFurther off in timeCloser if less construction remains
When the price is fixedWhen you sign the SPAWhen you sign the SPA for that phase

What a launch is and what a phase is

A launch is the start of sales of an off-plan project. The developer can only sell once the project is registered and approved, and advertise it with a permit. In higher-demand projects there is an EOI stage first and units are allocated on opening day.

A later phase is simply another sales opening, with its own list. Sometimes it is a second batch of units in the same building. Sometimes it is another tower or another block in the same community. The developer chooses the name; what matters is that each opening brings its price, its units and, often, its payment plan.

From EOI to a later phase on an off-plan projectHow launch and later phases follow each other1Project registeredThe developer can only sell once registered and permitted2EOIYou pay to bid; it does not secure a unit3Launch and allocationUnits are offered in that developer’s order4Booking and SPAYour unit’s price is fixed in the contract5Later phaseA new list may appear; it does not change your SPA
Your unit’s price is locked when you sign the SPA. A later list does not change it.

The timeline of a purchase, from EOI to keys, is in the guide to how long to buy off-plan in Dubai. Here we stay with the decision of when to step in: on day one or later.

Before you pay anything, check that the project is registered. How to do that yourself is in the guide to check dubai off-plan project safe.

How the price is set: list, EOI, allocation and SPA

The developer issues a price list for that opening: unit type, floor, aspect and, sometimes, views. The DLD does not set that list. The DLD records the sale at the contract price and charges 4% on that value, as set out in the guide to dubai property buying costs.

To take part in many launches you pay an EOI. It is neither a purchase nor a booking: it does not give you a right to a specific unit or oblige the developer to sell you one. Each developer sets the amount; in one published example it is an AED 50,000 cheque that is not cashed if you do not book. Refund terms and how to pay are in the guide to off-plan payment methods eoi dubai.

On launch day comes the allocation. Each developer follows its own order: by EOI date, giving priority to a larger down payment or by another rule it has published. If you are offered a unit and you accept it, you sign the booking form and pay the deposit. The EOI is credited to the price. The deposit, though, is usually not refunded if you walk away.

You then sign the SPA, the sale and purchase agreement. That is where the price, the unit, the payment plan and the expected handover date are set. From that signing, the price of your unit does not move even if another list later appears for other units. Read it in full before you sign; the detail is in the guide to the dubai spa clause by clause.

You do not need to travel on launch day: you can sign remotely or through a power of attorney to buy property in Dubai. We prepare the paperwork with you, review the list and the EOI terms and stay with you through allocation and signing.

Advantages of buying at launch

The first is choice. When sales open there are usually more floors, aspects and layouts still free. If a particular view, a high floor or a certain floor plan matters to you, that is when you have the most options.

The second is locking in that list price. If the developer later releases a more expensive phase, your unit already has the SPA price. That does not mean the market will rise or that you will make money on a resale: the price of an off-plan resale is set by the market on that day, not by the opening list.

The third is opening terms. At some launches the developer pays part or all of the 4% DLD fee. If so, it must be written into the contract. Sometimes the plan for that opening leaves more of the price until after handover; the usual types are in the guide to dubai off-plan payment plans.

You also gain construction time ahead of you. You enter earlier and, if the plan allows, you pay while the building goes up. How much you need ready at booking and during the works is in the guide to how much money invest dubai off-plan.

Risks of buying at the start

You are buying from a floor plan and a render. The building has barely risen, or has not started. You can see the area and the registered project, not the lobby, the finishes or the real traffic of the finished building. That is part of off-plan vs ready property dubai: you pay in stages and get a new home, in exchange for not yet seeing what you are buying.

The keys are further away. There is no rent until handover. If you plan to let it afterwards, long-term gross yields usually run between 6% and 8%, averaging around 6.5%; holiday-home gross yields run between 8% and 12%. That income does not start until you have the keys and, if it applies, the permit.

An EOI does not secure a unit. You may pay, not receive an offer that fits and get the money back, under the terms. And if you are allocated a unit, the booking may ask for 5%, 10% or more within a few days: in one published example there are 7 days of exclusivity and 5% due in that period. Have the down payment ready before you take part.

The other risks of an off-plan purchase are still there: a delay, a plan you cannot meet or a different market on handover day. Each one, and what reduces it, is in the guide to off-plan property risks dubai. What happens if the works run late is in the guide to dubai off-plan delays cancelled projects.

What changes if you wait for a later phase

The developer may open another list with other prices and other units. It decides that list, at that moment. It may be higher than the opening list, stay similar or come out with different terms, including a promotion. There is no official figure for how much a project rises from one phase to the next, and a generic percentage is not a useful guide.

What often does change is the stock. Higher floors, better aspects or the most sought-after layouts may have sold in the first opening. In return, you see more of the building: you can visit the site, watch the pace of construction and, if an earlier phase already has residents, get a sense of the finished place.

The payment plan for that phase may also be different. The same project sometimes opens with one plan and later offers another. Compare it with what you can genuinely cover, not just with the price per metre. The 4% DLD fee is calculated on the price in your contract, the price of that phase.

Time to the keys may shorten if you buy when construction has already moved on. That brings rent closer and shortens the period when you are paying without earning. It also leaves less room if you had planned to resell mid-build: there is less time left ahead.

How to decide in your case

There is no single answer. Buying at launch fits if choosing a unit matters to you, you want to lock in that list price and you can have the down payment ready in the booking window. Waiting fits if you prefer to see more of the building, you are not set on a particular floor or view and you accept that the list for that phase may be different.

Look at your aim as well. If you want rent soon, a more advanced phase or a ready home brings that income closer. If you want to enter with less money upfront and a spread-out plan, off-plan — at launch or later — usually asks for less at signing than a ready resale. The comparison is in off-plan vs ready property dubai and the full process is in buy off-plan property in dubai from abroad.

We review that opening’s list, the EOI terms and the plan with you, and we tell you clearly whether that moment fits what you are looking for. We do not ask you to decide blind on launch day.

To run the numbers on an example, try the Dubai off-plan ROI calculator or the rent estimator.

Things to keep in mind

  • The developer sets the price of each phase; there is no official percentage increase between phases.
  • An EOI does not secure a unit; read the refund terms before you pay.
  • Your unit’s price is fixed when you sign the SPA; a later list does not change it.
  • Have the down payment ready: a booking may ask for a large share within a few days.
  • Check that the project is registered before you pay anything.
  • A launch incentive, such as part of the 4% DLD fee, only counts if it is in writing.

We stay with you at every step, from the first look at the list through to signing: we prepare the EOI, help you through allocation and review the contract with you.

Frequently asked questions

Should I buy at the off-plan launch price in Dubai?

It depends on each project and each moment. At launch you usually choose earlier and lock in that list price when you sign the SPA; a later phase may bring another list and more of the building to see, but the most sought-after units may already have sold.

Do off-plan prices always rise from one phase to the next?

There is no official percentage and no rule that requires it. Each developer sets the list for each phase; it may be higher, similar or come with different terms.

Does an EOI secure a unit at launch?

No. It gives you the chance to take part. The unit is held when you accept the offer, sign the booking form and pay the deposit.

Is the price fixed when I sign the SPA?

Yes. The contract sets the price of your unit. A later list for other units does not change it.

What incentives are there when buying at a launch?

It depends on the developer and that opening. At some launches they cover part or all of the 4% DLD fee; if so, it must be written into the contract.

Can I take part in a launch without travelling to Dubai?

Yes. You can sign remotely or through a power of attorney legalised in a chain. What you do need is the EOI and the down payment ready within that developer’s deadlines.