Upfront cash for a Dubai off-plan purchase.
Cash needed at purchase
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Oqood fee (4%)
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Agency (incl. VAT)
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Max finance (50% LTV)
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Why off-plan asks for more cash than a finished home
Buying off-plan in Dubai means buying a unit that is still under construction, registered through the Dubai Land Department’s Oqood system. The appeal is the price and the payment plan, but the catch is the deposit. A bank will lend less against a building that does not yet exist, so mortgage finance on off-plan property is capped at a far lower loan-to-value than on a ready home. That single rule, the 50 percent ceiling this calculator applies, is what drives the large upfront cash requirement, and it is where most first-time off-plan buyers underestimate the cheque they need to write.
The tool adds up the three pieces of cash a buyer fronts at registration: the Oqood registration fee, the agency commission with VAT on top, and the gap between the price and the maximum the bank will lend. It then checks that against the deposit you have entered and tells you plainly whether you are covered or short.
The cash gap on a AED 1.6 million unit
Work through the default: a price of AED 1.6 million and AED 800,000 of cash on hand. The Oqood fee is the rate this calculator applies, 4 percent of price. Agency is 2 percent plus 5 percent VAT on that commission. And because the bank lends at most half the price, you must fund the other half in cash on top of the fees.
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So an AED 800,000 deposit, which sounds substantial, leaves you AED 97,600 short. The chart shows the structure: the bank covers the lower teal block, while the cash you supply is the larger stack of price gap plus fees that sits above the finance the lender will offer.
Oqood, and how it compares to a ready transfer
Oqood is simply the Land Department’s registration of an off-plan sale, and its fee carries the same 4 percent headline as a completed property transfer. The label changes, the percentage does not. What genuinely differs is the financing: a ready home can attract a much higher loan-to-value, so the same AED 1.6 million purchase would need far less cash if it were finished. These are the figures the calculator applies. Registration fees and LTV caps are set by the Dubai Land Department and the Central Bank of the UAE respectively and can be revised, so confirm the current numbers before you commit.
A buyer’s reality check and one overlooked cost
The off-plan buyer this tool serves is someone weighing a launch against a ready resale and trying to see past the glossy payment plan. The decisive question is rarely the monthly instalment, it is whether you can fund the deposit and fees at registration. A common trap is assuming the developer’s staged payment plan and the mortgage interlock cleanly. They often do not: you may pay the developer in construction-linked tranches while the bank only disburses its half near handover, so your own cash carries the early stages.
One cost this estimate keeps simple is the developer’s own administrative and DLD-linked charges, which vary by project and can add to the day-one outlay. Treat the AED 897,600 here as the core registration cash, then ask the developer for a full schedule of their fees before signing. A practical tip: keep a buffer beyond the calculated figure, because off-plan timelines slip and a delayed handover can stretch the period during which you are servicing a deposit without rental income to offset it.
Used early in your search, this calculator stops the most expensive surprise in off-plan buying, which is falling in love with a unit you cannot fund at registration. It estimates upfront cash only, not the long-run mortgage or the eventual running costs of the finished home.
Does the 50 percent cap apply once the property completes?
The lower cap is tied to the under-construction status. Once the unit is handed over and registered as a completed property, the higher ready-home loan-to-value generally becomes available, so buyers often refinance at handover. Confirm the timing and any conditions with your lender, as policies differ.
Can I pay the Oqood fee in instalments with the payment plan?
The Oqood registration fee is a Land Department charge due at registration, separate from the developer’s instalment schedule. Some developers absorb or defer it as a sales incentive, but you should assume it is payable upfront unless the contract explicitly says otherwise.