Off-plan sales represent one of the most prominent modern approaches in the real estate sector, allowing developers to market and sell units prior to completion based on architectural plans and engineering designs. This approach has contributed to accelerating real estate development and providing investment opportunities at competitive prices, alongside regulatory and legal frameworks aimed at protecting buyers’ rights and ensuring that developers comply with project specifications and predefined timelines.
In the following, we will explore the off-plan sales system, how to obtain a sales license, how to log in to the “Wafi” platform, and other important related information.
What is the off-plan sales system?
The off-plan sales system is a real estate sales model in which residential or commercial units are marketed and sold before their actual construction is completed. In this model, the buyer bases their decision on architectural plans, designs, and presented models rather than a completed physical property, and payment is typically made in installments linked to construction milestones.
This system is widely used in large-scale real estate projects because it enables developers to finance construction through buyers’ payments instead of relying entirely on self-financing or bank loans. In return, buyers often benefit from lower prices compared to ready-built properties, along with the potential for investment returns upon project completion.
Despite its advantages, this system requires strict legal and regulatory frameworks to protect the rights of all parties. Requirements commonly include project registration, depositing buyers’ funds into escrow accounts, and adherence to a defined construction timeline, all of which aim to reduce risks such as delivery delays or project failure.
What is the percentage of off-plan sales?
There is no official statistical figure that specifies the “percentage of off-plan sales out of total real estate sales” as a fixed or up-to-date percentage. However, there are strong indicators reflecting the expansion of this model in the market. According to data from the Wafi Committee, thousands of project licenses have been issued in recent years, covering hundreds of thousands of off-plan real estate units. By 2022, the number of licensed units exceeded 358,000 units across approximately 496 projects, representing significant growth compared to previous years.
Common mistakes that should be avoided
Many buyers and investors fall into mistakes that may lead to financial losses or legal issues, and these mistakes are often the result of haste or insufficient due diligence. The most notable of these mistakes include:
- Purchasing in an unlicensed project: entering into a contract for a project without an official license is one of the most serious mistakes, as it exposes the buyer to risks of project failure or fraud.
- Failing to verify the developer’s reputation: neglecting to review the developer’s track record and past experience may result in dealing with an unreliable or financially unstable party.
- Ignoring the details of the sales contract: not carefully reviewing the contract, especially clauses related to delivery, penalties, and termination, can lead to significant future problems.
- Relying solely on advertisements: depending on marketing visuals without reviewing approved plans and actual technical specifications is a common mistake.
- Not understanding the payment schedule: entering into financial commitments without assessing repayment capacity or understanding installment timelines may lead to financial distress.
- Ignoring the escrow account: failing to ensure that the project has an escrow account means that funds may not be adequately protected.
- Neglecting project progress monitoring: some buyers do not follow up on construction phases, which delays the detection of issues or delays.
- Rushing the decision-making process: purchasing under pressure from offers or discounts without sufficient market and project analysis.
- Not consulting a real estate or legal expert: ignoring professional advice may lead to uninformed decisions, especially in large contracts.
- Overestimating profit expectations: assuming that real estate will always generate quick returns without proper market analysis may lead to investment disappointment.
In conclusion, avoiding these mistakes depends on three key pillars: legal verification, financial assessment, and avoiding haste—factors that can transform off-plan investment from a risk into a successful opportunity.
Obtaining an off-plan sales license
The off-plan sales license is issued through the Wafi program التابعة لـ the Real Estate General Authority (REGA), under a regulated official framework. The process goes through clear mandatory stages as follows:
First: Qualification and registration (before applying for the license):
The developer must:
- Register on the off-plan sales platform via the National Unified Access (Nafath)
- Be listed in the developers’ registry (a mandatory requirement)
- Demonstrate financial and technical competency
Second: Preparing project requirements:
A complete project file must be prepared, including:
- Land title deed or development agreement
- Approved building permit
- Engineering drawings and designs
- Feasibility study for the project
- Appointment of a certified accountant
- Draft sales contract with defined delivery schedules
- Opening an escrow account for the project
Third: Submitting the licensing application:
- The application is submitted electronically via the Wafi platform
- All legal and technical documents are attached
- The relevant authority reviews:
- Financial viability
- Engineering and technical compliance
- Regulatory adherence of the project
Fourth: Issuance of the license:
- Once approved, the off-plan sales license is issued
- Marketing or selling is not permitted before obtaining the license
Fifth: Post-licensing obligations:
After issuance, the developer must:
- Deposit all buyers’ payments into the escrow account
- Release funds only according to construction progress percentages
- Submit periodic progress reports
- Comply with the project’s execution timeline
In some cases, the developer may collect up to 5% as an initial booking amount before full licensing (during certain marketing authorization stages), provided it is deposited into the escrow account, reflecting the strict regulatory framework applied in Saudi Arabia.
Wafi Off-Plan Sales Platform
The Wafi off-plan sales platform is a Saudi government digital platform supervised by the Real Estate General Authority (REGA). It aims to regulate the sale and leasing of real estate units before their construction is completed (off-plan sales) within a legal framework that protects all parties in the real estate market.
It enables real estate developers to:
- Obtain off-plan sales licenses
- Register real estate projects
- Manage sales and marketing activities in a regulated manner
It also allows buyers to:
- View licensed projects
- Verify the credibility of developers
- Track project construction progress
The platform provides several key electronic services, including:
- Issuing off-plan sales licenses
- Issuing real estate marketing licenses
- Registering and qualifying developers
- Monitoring projects and progress reports
- Submitting reports on non-compliant projects
Off-plan sales contract
The importance of the off-plan sales contract lies in its ability to achieve a legal balance between both parties; it protects the buyer from risks such as delivery delays or changes in specifications, while also ensuring the developer’s right to receive payments, particularly under regulatory frameworks such as escrow accounts and engineering supervision systems.
No off-plan sales contract is considered valid unless the project is officially licensed by the competent authority, and the contract must comply with approved standardized templates to ensure the legal rights of all parties.
Wafi Off-Plan Sales Platform Login
The registration process on the Wafi off-plan sales platform (supervised by the Real Estate General Authority) is completed entirely online through the National Unified Access (Nafath), and it is a mandatory step before applying for any license.
Registration steps on the Wafi platform:
- Access the Wafi platform via the Real Estate General Authority website
- Log in through Nafath: sign in using your “Absher” account for official identity verification
- Create an account: after login, select “Create New Account” on the platform
- Enter user information: (ID/Iqama number, date of birth — data is verified automatically via Nafath)
- Complete personal and commercial details: (personal information and commercial registration details if you are a developer or company)
- Link the entity to the account: (select the registered entity linked to you and define your role: owner / authorized representative)
- Complete entity information: (enter real estate activity details and upload required documents)
- Confirm the account and start using services: after completion, you can apply for qualification, request off-plan sales licenses, and track projects
Important registration requirements:
- The applicant must be listed in the commercial register ownership
- An active Nafath (Absher) account is required
- A valid commercial registration is required for companies and developers
In conclusion, off-plan sales emerge as one of the modern real estate solutions that combine promising investment opportunities with challenges that require awareness and careful analysis. The success of this type of investment depends on selecting a reliable project and a developer committed to regulations and legislation. With the continuous development of regulatory frameworks and increased oversight, off-plan sales have become safer and more attractive, making them a suitable option for those seeking to achieve future value in the real estate market.
