Selling an off-plan unit before it's completed, often called an assignment or a "flip", is common in Dubai and fully legal when done through the proper channels. It lets investors take profit from price growth during construction, without waiting for handover or paying the remaining balance. Here's how it works.
Can you sell off-plan property before handover?
Yes, as long as your developer's rules allow it. The sale transfers your contract with the developer, and your Oqood registration, to the new buyer. The buyer takes over the remaining payments, and you receive back what you've paid plus any premium you've agreed.
What you need before you can resell
- The developer's minimum payment. Most developers only allow resale once you've paid a set share of the price. The threshold is often between 30% and 50%, and it's written in your sales and purchase agreement (SPA).
- Up-to-date instalments. Any overdue payments must be cleared before the developer will approve the transfer.
- A No Objection Certificate (NOC). The developer confirms your account is clear and approves the transfer, usually for an admin or transfer fee.
- Your Oqood registration. This is the Dubai Land Department's off-plan registration that links the unit to you. It moves to the buyer on transfer.
How the resale works, step by step
- Check your SPA. Confirm the minimum payment, any resale restrictions and the developer's transfer fee.
- Get a valuation. Price the unit against recent resale transactions in the same project and similar launches nearby.
- Market the unit. Off-plan resales usually appeal to investors, so it helps to reach buyers who understand payment plans.
- Agree the terms. Agree the price, the amount the buyer reimburses you for payments already made, and who pays which costs.
- Sign the agreement. Buyer and seller sign a sale agreement, usually with a deposit.
- Get the developer's NOC. The developer approves the transfer once its fee is paid.
- Complete the transfer. The transfer is completed with the developer or at a Dubai Land Department trustee office, and the Oqood moves to the buyer.
What does it cost?
| Cost | Usually paid by | Typical amount |
|---|---|---|
| Dubai Land Department fee | Buyer | 4% of the price, commonly calculated on the resale price |
| Developer transfer or NOC fee | Seller | Varies by developer |
| Agency fee | Seller, unless agreed otherwise | Around 2% plus VAT |
| Trustee office fee | Buyer | A fixed fee plus VAT |
Who pays what can be negotiated. I'll give you an exact breakdown for your unit.
There's no capital gains tax on property in the UAE, so your profit isn't taxed locally. If you're tax resident elsewhere, check your home country's rules.
Worked example
Say you bought an off-plan apartment for AED 2,000,000 and have paid 40% (AED 800,000). Similar units now sell for AED 2,300,000.
| Amount | |
|---|---|
| Resale price agreed | AED 2,300,000 |
| Buyer reimburses what you've paid | AED 800,000 |
| Plus your premium | AED 300,000 |
| Buyer takes over the remaining payments to the developer | AED 1,200,000 |
| Your costs (agency fee and developer fee, for example) | Deducted from your AED 300,000 premium |
An illustration only. Actual prices, fees and who pays them vary by project and agreement.
In this example, you'd walk away with your AED 800,000 back plus a premium of AED 300,000 before costs, on an investment of AED 800,000, without paying the remaining balance.
When is the best time to resell?
Many investors resell as construction nears completion, when the project is visibly taking shape and buyers are more confident. Others hold until handover to rent the unit out or sell it as ready property. The right choice depends on the market, how much you've paid, and whether you can fund the payment due at handover.
Risks and mistakes to avoid
- Assuming you can resell at any time, without checking the SPA's minimum payment rule.
- Overpricing the unit compared with the developer's own current launch prices in the same project.
- Forgetting to budget for the developer's transfer fee and the agency fee.
- Planning to resell but not being able to fund the handover payment if the unit doesn't sell in time.
Reselling off-plan in Abu Dhabi
The process is similar in Abu Dhabi, but the registration fee is 2% instead of Dubai's 4%, and registrations go through DARI. See how to buy off-plan property in Abu Dhabi.
Thinking of reselling your unit?
I'll value your unit against current transactions, check your developer's resale rules and market it to my investor network. Request a free valuation and I'll tell you what it's worth today.
More questions? See the Dubai property FAQ.
Frequently asked questions
Can I sell my off-plan property before handover in Dubai?
Usually, yes. Most developers allow resale once you've paid a minimum share of the price, often 30% to 50%, with their NOC. The rules are in your SPA.
What is a developer NOC?
A No Objection Certificate from the developer confirming your payments are up to date and approving the transfer to the buyer. Developers usually charge a fee for it.
Who pays the 4% DLD fee on an off-plan resale?
The buyer usually pays the Dubai Land Department fee, although who pays which costs can be negotiated.
Is there tax on profit from reselling property in Dubai?
There is no capital gains tax on property in the UAE. If you are tax resident elsewhere, check your home country's rules.
What happens to my Oqood when I resell?
Your Oqood, the off-plan registration with the Dubai Land Department, is transferred to the new buyer when the sale completes.
RERA-licensed real estate consultant at Aeon & Trisl, specialising in off-plan and investment property, with AED 600M+ in closed deals and 100+ clients worldwide.