Presales are off-plan sales of units in a development before construction completes, with buyers paying in instalments against milestones. In the UAE, presale proceeds are typically held in a regulated project escrow account and released to the developer as construction progresses, making presales both a demand signal and a source of project funding.
Strong presales reduce the debt and equity a developer must raise and give lenders confidence in demand and exit.
Central to UAE real estate development finance and construction lending.
Presales are off-plan sales of units in a development before construction completes, with buyers paying in instalments against milestones. In the UAE, presale proceeds are typically held in a regulated project escrow account and released to the developer as construction progresses, making presales both a demand signal and a source of project funding.
Central to UAE real estate development finance and construction lending.
A presale is an off-plan purchase made before construction completes, paid in instalments against milestones; in the UAE the proceeds are typically held in a regulated project escrow account and released as building progresses. A completed-unit sale transfers a finished property for payment on transfer, with no construction risk for the buyer.
Instalments paid by off-plan buyers flow into the project escrow account and are released to the developer against construction milestones, funding part of the build directly. Strong presales therefore reduce the debt and equity the developer must raise, and give lenders confidence in both demand and exit.
Speak to a partner about how this applies to your transaction.
