10 Common Mistakes Overseas Investors Make When Buying Off-Plan in Dubai

Dubai's skyline changes every day, and new developments and buildings pop up all the time. As an overseas investor, it might look like a fantastic chance to buy off-plan property, see the price rise, and sell it at a profit. Off-plan properties do work, as they are less expensive, have flexible payment options, and are brand new off the production line. The problem is that many buyers make snap decisions without conducting adequate research. They become overly enthusiastic and make costly mistakes. So, let’s talk about the top 10 mistakes people make when buying off-plan in Dubai and how you can avoid them.

Not Understanding What 'Off-Plan' Actually Means

Let’s start with the basics. “Off-plan” doesn’t just mean “new”. It means the building doesn’t exist yet, and you are buying based on floor plans, brochures, and digital renderings. Some buyers anticipate being able to rent or move into the property within a year. However, there are frequent delays in these developments. A study found that over 50% of off-plan projects in Dubai experience delays of six months to two years.

Advice: Always enquire about the anticipated date of handover and see if the developer has a track record of meeting deadlines.

Blind Trust in Developers Without Checking Their Track Record

We have all seen those beautiful pictures in brochures of fancy pools, shiny marble lobbies, and amazing views. Well, any developer can hire a talented designer to make things look great on paper. What matters is their track record and how many projects they have finished. Overseas investors often rely on glossy ads or agent promises without checking the developer’s background. It's like buying a car from someone who just set up a garage yesterday and promises it’ll be “the fastest ever”.

Advice: Look for developers registered with the Dubai Land Department (DLD) and RERA. Use the Dubai REST app to verify their previous projects and delivery records.

Thinking the Price Is All That Matters

A 1-bedroom apartment worth AED 800,000 may sound like a fair deal, especially compared to prices back home. But price isn’t everything. You’ve got to look into the neighbourhood, nearby schools (if needed), shops, and other important things. These can all affect how much your new home is worth and how well its value will hold over time.

Sometimes, low prices may mean corners are being cut. Maybe the ceiling is lower, the finishes are basic, or there is no balcony, even though the show unit had one. Some developers quote the total area, including balconies, shared corridors, or even AC duct space, which makes the “price per square foot” look cheaper than it is.

Advice: Research the area and enquire about its amenities. Visit other units from the same developer to check quality.

Skipping Reading the Fine Print in the Sales Purchase Agreement

The SPA (Sales Purchase Agreement) is not just paperwork. It outlines your rights, the handover date, payment terms, penalties, and what happens if the developer delays or doesn’t deliver. Some overseas investors get caught in clauses they didn’t notice, like the developer having a 12-month “grace period” beyond the expected delivery date. That’s a whole year of delay they technically don’t need to compensate you for.

Advice: Hire a lawyer familiar with Dubai real estate. It costs money, but it might save you thousands in the long run.

Underestimating the Emotional and Financial Toll of Construction Delays

Some overseas investors might think delays are normal. But delays can stretch your patience and your wallet. Let’s say you planned to rent the property starting in 2025, but it’s delayed until 2027. That’s two years of missed income, two years of paying instalments with no return, and possibly two years of currency fluctuations or financing costs if you took a loan. Some investors get anxious, panic-sell at a discount, or stop payments and risk losing their deposit.

Advice: Be mentally and financially ready for delays. Always add at least 25% to the promised timeline in your calculations.

Not Accounting for Service Charges

Many first-time investors calculate rental income based on gross rent. But what about the service charges? These can range from AED 10 to AED 30+ per square foot annually, and in high-end developments, they can go even higher.

Let’s say your one-bedroom unit is 800 square feet and the service charge is AED 20 per square foot. That’s AED 16,000 a year. If your rent is AED 60,000, you are already down by over 25%.

Advice: Always ask for the projected annual service charge. It’s better to know upfront than to be shocked later.

Not Considering All Possible Expenses

A lot of overseas investors look at the property price and stop there. They think, “Okay, this apartment is AED 1,200,000, and I have got that covered.” But real estate in Dubai comes with layers of hidden and not-so-hidden costs that can sneak up on you fast if you are not prepared.

Let’s break it down. You have the 4% Dubai Land Department (DLD) registration fee. Then there’s the Oqood registration (for off-plan properties), admin fees, trustee fees, and sometimes even extra charges from the developer just for issuing NOCs (No Objection Certificates). Those aren’t always clearly explained in the brochures.

Advice: Create a complete cost sheet before committing. Include all government fees (like DLD and Oqood), developer charges, service fees, and post-handover maintenance. If renting it out, factor in agent fees and furnishing costs.

Not Having an Exit Strategy

Some overseas investors jump in thinking they’ll flip the unit after two years and pocket a nice profit. Sometimes that works, especially in a rising market. But what if the market slows down? Or what if the developer doesn’t allow resale until 50% of the payment is made? You’d be surprised how many investors find themselves stuck midway. They can’t resell; the market has dipped, and they still have payments due.

Advice: Know your resale rights. Ask about the minimum payment threshold for resale and what transfer fees apply. If you are counting on resale as your plan A, make sure there’s a solid plan B too.

Not Checking If an Agent is RERA Certified

Dubai’s real estate market is regulated by RERA (Real Estate Regulatory Agency), but that doesn’t stop unlicensed agents from operating. Some are honest but inexperienced. Others might push projects that give them the highest commission, not the best value for you.

Commissions in Dubai can be generous, sometimes up to 5% for off-plan sales. That means agents are motivated to sell, not necessarily to advise.

Advice: Check the agent’s RERA licence number. You can verify it through the Dubai Land Department website or simply ask them to show it.

Neglecting Market Trends

Dubai’s property market can move fast. Prices can shoot up or cool off quickly depending on global events, interest rates, oil prices, and investor sentiment. Some overseas buyers jump in without even checking what's been happening in the market over the past 6 to 12 months. That’s like buying stocks without looking at the chart.

Buyers commit to projects at peak launch prices, thinking they have secured a hot deal, only to realise six months later that similar units are being offered with better payment plans or lower prices. Or, the unit doesn’t appreciate the way they expected because there’s an oversupply in that segment.

Advice: Keep an eye on the data. Look at recent market reports from trusted sources like Property Monitor or CBRE. See how prices have moved in the last year. If you are unsure, speak to a real estate analyst or an independent agent.

If you need help with your off-plan property purchase, speak to our real estate agents today for honest advice and expert support.

Conclusion

Buying off-plan in Dubai isn’t a bad idea. It’s been profitable for many, especially those who have done their homework. But going in blindly, based on excitement, is where the trouble begins. You don’t have to be an expert; you just have to ask the right questions. Think beyond the brochure, go beyond the price tag, and most importantly, don’t rush. Property is one of the biggest financial decisions you’ll ever make, and it deserves more than a leap of faith. At the end of the day, the difference between a smart investor and a sorry one is often just a matter of asking what others forget to ask.

Talk to us before you invest in off-plan property in Dubai. Our experienced real estate professionals can help you avoid mistakes and choose the right property.