Buying Off-Plan Property: Everything You Need to Know Before Committing

Buying off-plan — purchasing a property before it is built, often from architectural drawings and CGIs — is one of the most powerful strategies in property investment. When done correctly, it allows you to lock in today’s prices on tomorrow’s market, secure the best units in a development before the general public, and benefit from capital growth during the construction period without having the full purchase price tied up.

But off-plan buying is not without risk. Construction delays, specification changes, developer insolvency, and market corrections between exchange and completion can all affect outcomes. Having marketed off-plan developments for some of London’s most prominent developers, and guided hundreds of buyers through the process, we have seen both the rewards and the pitfalls. This guide gives you the honest picture.

Why Buy Off-Plan?

The primary advantage is price. Developers typically offer launch prices that are 5 to 15 per cent below the anticipated completed value, because they need early sales to secure construction finance and demonstrate market demand. For investors, this built-in discount represents instant equity. If the market also appreciates during the 2 to 4 year construction period, the combined gain can be substantial.

Off-plan buyers also get first pick. In a new development, the best units — corner positions, higher floors, river views, south-facing terraces — are released first. By the time a development is complete and buyers can walk through a finished apartment, the premium units are long gone. If you are particular about aspect, floor level, or layout, buying off-plan is often the only way to get exactly what you want.

Payment structures are also more flexible. In the UK, off-plan purchases typically require a 10 per cent deposit on exchange, with the balance due on completion 18 to 36 months later. In Dubai, payment plans can stretch across the entire construction timeline and beyond, with some developers offering post-handover instalments.

The Risks and How to Mitigate Them

Construction delays are the most common issue. A development scheduled for completion in Q2 2027 might not deliver until Q4 2027 or later. While this is frustrating, it is rarely catastrophic — but it can disrupt your financing if your mortgage offer expires before completion. Build a 6-month buffer into your planning timeline and keep your mortgage broker informed throughout.

Specification changes are another concern. Developers reserve the right to make material substitutions during construction. While these are usually equivalent or better, it is worth understanding what is guaranteed in your contract versus what is indicative. Pay close attention to the specification schedule in your purchase agreement and flag anything you consider essential.

Market corrections between exchange and completion represent the most significant financial risk. If you exchange at £600,000 and the market drops 10 per cent before completion, your property is worth £540,000 on day one. For investors this may not matter if they are holding long-term, but for buyers who need to sell quickly or who are stretching to afford the purchase, it creates real pressure. The mitigation here is straightforward: only buy what you can afford to complete on, regardless of short-term market movements.

Developer insolvency is rare among established housebuilders but does occur with smaller developers. In the UK, deposits for off-plan purchases should be protected — either held by the developer’s solicitor in a designated account or covered by a warranty scheme such as NHBC, Premier Guarantee, or similar. Always verify deposit protection before exchanging contracts.

Due Diligence Checklist for Off-Plan Buyers

Before committing to any off-plan purchase, work through these checks. Research the developer’s track record — have they delivered previous projects on time and to specification? Visit their completed developments if possible. Check the planning consent — is it fully approved or still subject to conditions? Review the lease terms carefully — lease length, ground rent provisions, service charge estimates, and any restrictions on subletting or short-term rental.

Understand the completion timeline and what happens if it overruns. Check what warranty schemes are in place for structural defects. Confirm deposit protection arrangements. Review the specification schedule in detail and clarify what is included versus what is optional. If you are buying for investment, check anticipated service charges and rental estimates independently rather than relying solely on the developer’s projections.

Off-Plan in London vs Dubai

The off-plan market operates differently in each jurisdiction. In London, the legal framework is robust and well-established. Deposits are protected, building warranties are standard, and the Defective Premises Act provides legal recourse for quality issues. However, stamp duty is payable on exchange or completion depending on the contract structure, and mortgage products for off-plan purchases can be more limited.

In Dubai, off-plan buying is more common and the market is more developer-friendly. Payment plans are significantly more flexible, often requiring just 10 to 20 per cent during construction with the balance on handover. The regulatory framework has improved substantially through RERA, which requires developers to have escrow accounts and meet milestones before releasing funds. However, the sheer volume of off-plan supply — with over 120,000 units scheduled for delivery in 2026 alone — means buyers need to be selective about which developments will hold value on completion.

Who Should Buy Off-Plan?

Off-plan buying suits investors with a medium to long-term horizon who want to maximise capital growth and are comfortable with some uncertainty around timing. It suits buyers who want the best unit selection and are willing to wait for delivery. And it suits purchasers who prefer to spread their capital outlay over a longer period rather than committing the full amount upfront.

It is less suitable if you need to move in immediately, if you are highly leveraged and cannot absorb a delay, or if you are uncomfortable making a significant financial commitment based on plans and renders rather than a finished product you can walk through. There is nothing wrong with waiting for completion and buying a finished home — you simply pay a premium for that certainty.

Off-plan buying, done right, is one of the smartest ways to build a property portfolio. The key is informed decision-making: understand the developer, understand the market, understand the contract, and plan for the worst while expecting the best.