What Is an Off-the-Plan Property?

A Beginner-Friendly Guide to Buying Property Before It’s Built

If you’ve spent any time looking at property in Thailand — or scrolling through listings in places like Phuket, Bangkok, or Bali — you’ve probably come across the term “off-the-plan.”

What is an off-the-plan property anyway?

It gets mentioned often by developers and agents, usually with phrases like “early-bird pricing” or “modern tropical design.” But behind the slick brochures and 3D renders, it’s important to understand what you’re really buying into.

Buying off-the-plan means purchasing a property that hasn’t been built yet. You’re committing to a future home or investment based on plans, promises, and a projected timeline — not a finished product you can walk through today.

And while this approach offers real advantages — especially for getting better pricing, securing a brand-new design and a staged payment plan — it also comes with risks. If you’re not prepared, and you don’t ask the right questions, it’s easy to run into delays, surprises, or regret. That’s especially true for first-time buyers in Southeast Asia, where local property laws and standards may be very different from what you’re used to.

In this article, I’ll walk you through:

• What “off-the-plan” actually means
  
• Why it appeals to many buyers
  
• Where things can go wrong — and how to avoid the biggest mistakes
  
• And who this model is (and isn’t) right for
  

If you’re looking for a clear, honest breakdown — with both the upside and the fine print — you’re in the right place.

1. What Does “Off-the-Plan” Actually Mean?

When you buy a property off-the-plan, you’re purchasing something that hasn’t been built yet. Instead of touring a finished house or apartment, you’re choosing a unit based on architectural plans, renders, and a developer’s timeline.

This means you’re committing to a property that might take 12–30 months to complete, depending on the project. In most cases, there’s no finished product yet — just paperwork and a promise.

That said, some developers will build a show villa or sample unit — almost like a physical version of a brochure. These are set up at the project site or a nearby sales gallery and help buyers visualise the materials, layout, and overall finish. But it’s important to remember: the actual unit you’re buying will be constructed from scratch, often months after you sign.

🧱 A Real-World Example

Let’s say you buy a 3-bedroom villa in Phuket in early 2025. The land is cleared, the floor plan is finalised, and the developer has launched the pre-sale phase.

• You pay a small reservation fee to lock in your unit
  
• Within a few weeks, you sign a Sales & Purchase Agreement (SPA) and pay the first deposit (often 20–30%)
  
• Over the next 12–24 months, you’ll make staged payments as the construction progresses
  
• Once the villa is finished, you’ll inspect it, settle the final payment, and take ownership
  

Until then, you don’t have a physical property — you have a contract, a construction schedule, and a commitment from the developer.

🔑 What You’re Really Buying

Off-the-plan buying is a mix of real estate and trust. You’re not just buying a home — you’re buying into:

• A promise to build what was shown
  
• A timeline that may shift depending on delays or approvals
  
• A structure that might not be fully visible to you until handover
  

That’s why developer reputation, legal setup, and payment terms matter so much in these deals — and why the next few sections will walk you through both the potential and the pitfalls.

Pro tip: Showrooms are built to impress — and while some closely reflect the final product, others may exaggerate space, finishes, or include furniture that’s not part of the package.

👉 Read our guide to navigating showrooms and sales galleries wisely.

How Does Buying Off-the-Plan Work?

Buying off-the-plan is a step-by-step process that starts well before the building exists — and often stretches over 12 to 30 months, depending on the size and progress of the development.

Here’s a general overview of how it works:

🧾 Step 1: Reservation

You choose a unit and pay a booking or reservation fee (usually THB 100,000 to 300,000). This temporarily takes the unit off the market while the developer prepares your contract.

📝 Step 2: Contract Signing

Within 2–4 weeks, you’ll sign the Sales & Purchase Agreement (SPA) and pay the first deposit — often 20% to 30% of the purchase price. This formalises your commitment and locks in the unit.

🏗️ Step 3: Staged Construction Payments

As the build progresses, you’ll make additional payments in milestones (e.g. foundation complete, roof on, walls up, interior finishes).
These payments are typically split into 4 to 6 stages, and the exact structure will be outlined in your SPA.

📌 Important: Always make sure payments are clearly linked to construction progress — and don’t rely on vague percentage schedules.

🔍 Step 4: Inspection & Handover

When construction is finished, the developer will notify you for handover.
You or your representative can inspect the property and note any defects or incomplete work (called a snag list).

Once everything is approved, you make the final payment and take legal possession.

📜 Step 5: Ownership Transfer

• If buying a condo (freehold): The title deed is transferred into your name at the Land Office.
  
• If buying a villa (leasehold): A registered lease agreement (typically 30 years) is signed and recorded.
  

🪴 Step 6: Move-In or Rental Setup

After transfer, the property is yours to use, furnish, or rent out.
Some developers offer optional furniture packages or property management for rentals — but always confirm what’s included and what’s extra.

Every developer is slightly different, so your experience may vary. But this general flow will help you know what to expect — and what to prepare for — as you move through the off-plan journey.

Why Do People Buy Off-the-Plan?

There’s a reason off-the-plan property is popular — especially in markets like Thailand, where new developments are constantly being launched.

It’s not just about buying a future home. It’s about getting in early, spreading out payments, and locking in a modern design that fits your lifestyle (or your rental strategy).

Here are the biggest reasons people choose to buy this way:

✅ 1. Lower Entry Price

Developers typically launch projects in phases, with the best prices offered early — before construction ramps up.
Buyers who commit early often save 5–15% compared to later phases or completed units.

✅ 2. Flexible Payment Plans

Since you’re buying during construction, the cost is usually split into manageable staged payments, rather than one large lump sum.
This is particularly helpful for foreign buyers, as mortgages can be hard to secure in Thailand unless you have residency or a Thai co-borrower.

✅ 3. First Choice of Units

Off-the-plan buyers usually get first pick — better layouts, better views, or more privacy.
You’re not competing in the resale market for whatever’s left — you’re choosing what fits you best from the beginning.

✅ 4. Brand-New Design & Warranties

You get a new property, built to current standards, with warranties and modern finishes. No old plumbing, no outdated wiring, no surprise repairs in year one.

✅ 5. Potential Capital Growth

If the market rises during construction — or if infrastructure develops nearby — your property may be worth more before you even take possession.

This is where investors sometimes see the most upside, particularly in fast-developing areas.

Of course, these benefits only count if the project is delivered as promised. That’s why the next section covers what can go wrong — and how to protect yourself from it.

What Are the Risks?

Buying off-the-plan can be smart — but it’s not risk-free. When you commit to something that isn’t built yet, you’re placing a lot of trust in the developer, the contract, and the timeline.

Here are the most common risks to be aware of — and why they matter, especially if you’re buying in Southeast Asia for the first time.

⚠️ 1. Construction Delays

Delays are common — due to weather, permits, labor shortages, or just poor project management.
A six-month delay might not seem huge, but if you’re planning around rental income or a relocation date, it can cause major disruption.

Tip: Look for a contract that includes penalties or compensation clauses for delays — and ask about the developer’s past delivery record.

⚠️ 2. Developer Doesn’t Deliver What Was Promised

The finished product might not match the brochure. Maybe the pool is smaller. The materials are cheaper. The landscaping is thinner.
This can happen when developers cut costs — or when buyers assume too much based on showroom staging.

Tip: Always get the full materials/spec sheet in writing. Ask exactly what’s included — especially around kitchen fittings, air-con, and furniture.

⚠️ 3. Legal or Ownership Issues

If you’re not careful, you could sign into a vague leasehold, or discover the land isn’t properly registered.
This is especially risky for villas, where foreign ownership is more complex than with condos.

Tip: Use a local property lawyer — even if the developer says it’s not necessary. A small upfront cost protects you from much bigger issues later.

⚠️ 4. Cash Flow & Holding Costs

If you’re buying for investment, remember: you won’t earn income until handover.
But you’ll still have to make payments during construction — and you might be covering transfer fees, taxes, and a furniture package before it’s rentable.

Tip: Plan for at least a year of zero income. If it comes earlier, great — but don’t rely on it.

⚠️ 5. Market Conditions May Shift

Tourism, infrastructure, or foreign ownership rules can change mid-way through a build. If demand drops or your target area becomes oversupplied, you might not get the returns you expected.

Tip: Focus on fundamentals — location, build quality, and long-term demand — not just projected rental yields.

Buying off-the-plan isn’t about avoiding risk. It’s about understanding where it is — and managing it well.
In the next section, we’ll hear from an investor’s perspective, and explore when this model actually makes sense for ROI.

Off-the-Plan for Investors: Smart Play or Too Much Risk?

Not everyone buying off-the-plan is looking for a forever home. For some, it’s about return on investment — locking in a good price early, and letting the market do some of the heavy lifting during construction.

When timed well, it can work. Especially in areas like Phuket, where new infrastructure, schools, and lifestyle hubs are pushing certain neighbourhoods up in value. You pay less upfront, often on a payment plan, and potentially take ownership of a more valuable asset 18–24 months later.

But there are conditions.

I asked property investor and writer Alina Voronina what she looks for in an off-the-plan deal — and when she walks away.

“Most off-plan investors don’t run a real cash flow model — they just buy into brochure ROI. But your yield means nothing if you’re sitting on a construction site for two years with no income and rising costs.”
— Alina Voronina, Investor & Contributor at Hawook

She’s right. If you’re buying to rent, the holding period matters. So do things like:

• When income will start (and how soon after handover)
  
• Whether the area supports daily or monthly rentals
  
• If the unit will be easy to resell, refinance, or manage remotely
  

“You’re not just buying a villa — you’re betting on the developer, the area, and your own patience. The moment you treat it like a set-and-forget investment, you’ve already lost control of your margin.”
— Alina Voronina

If you’re seriously considering an off-plan property for Airbnb or long-term rental, I’d recommend reading her full piece:
👉 Should You Buy Off-the-Plan as an Investor in Thailand?

It’s detailed, data-aware, and packed with hard-earned insight — especially for anyone trying to balance ROI with real-world complexity.

Who Is It Suitable For?

Off-the-plan isn’t for everyone. But when it works, it really works — especially if you’re realistic about the timeline, the risks, and what you’re getting in return.

Here’s a quick breakdown of who this model tends to suit — and who might be better off with something ready to move into.

✅ Off-the-Plan Is a Good Fit For:

📅 Long-Term Planners
If you’re buying with a 12–24 month horizon — whether it’s a future home, retirement base, or second home — off-the-plan gives you time to prepare while locking in today’s price.

💸 Budget-Conscious Buyers
If you’re buying without financing, staged payments can make the purchase more manageable. This is especially helpful for foreign buyers, since mortgages are limited in Thailand.

🏡 People Who Want a Modern, Custom Feel
You’re not stuck with someone else’s taste or 10-year-old tiles. You get a brand-new build, often with optional upgrades or light customisation (depending on the developer).

📍 Early Movers in Growth Areas
If you believe in the area — new schools, roads, or commercial hubs nearby — buying before it all happens can set you up for long-term gains.

🧳 Occasional Users Who Plan to Rent It Out
If you’ll only visit a few months a year, off-the-plan can be part of a lifestyle + income strategy, especially in tourism-driven locations. But you need a solid rental management plan.

⚠️ Off-the-Plan Might Not Be Ideal For:

⏰ People Who Need to Move In Soon
If you need a home within the next few months, this isn’t it. Even if the developer is on time, construction is never instant.

🔎 Buyers Who Struggle With Uncertainty
You won’t know exactly how things will look, feel, or flow until it’s built. If that keeps you up at night, a completed resale unit may be a better choice.

📉 Buyers Betting on Quick Flips
Off-the-plan isn’t fast cash. If you’re relying on a sharp resale immediately after handover, be cautious — especially in areas with a lot of new supply.

Quick takeaway:
Off-the-plan works best when you treat it as a long-term play, not a shortcut. If you’re buying for the right reasons — and you’ve done your homework — it can be a smart, flexible way to secure a modern property in a growing part of South East Asia.

Off-the-Plan in Thailand – A Quick Note

If you’re looking at off-the-plan property in Thailand, there are a few local quirks and legal realities to keep in mind — especially if you’re a foreign buyer.

🏢 Condos Are Straightforward — Villas, Less So

Foreigners can legally own condos freehold, as long as the building hasn’t exceeded the 49% foreign ownership quota.
But when it comes to landed property (like villas), foreigners can’t own the land directly. Instead, most developers offer 30-year leaseholds, which can often be renewed or paired with other structures like Thai companies or usufruct agreements.

Leasehold is very common — and legal — but it’s important to understand what’s being registered at the Land Office and what rights it gives you long-term.

💡 Developer Standards Vary

Thailand has some excellent developers — and also a fair number of… enthusiastic marketers. Some deliver beautiful villas exactly as shown. Others cut corners once the contract’s signed.

That’s why it’s worth investing time in due diligence — asking to see past projects, checking build quality, and having a lawyer review the contract before you sign.

🔎 Pre-Launch Pricing & “Early Bird” Offers

Many off-plan projects launch with discounted pre-sale prices or incentives for the first handful of buyers.
These can offer real value — but they also mean you’re buying earlier in the construction cycle, with longer waits and sometimes more uncertainty.

Don’t be afraid to negotiate, but also don’t assume the discount guarantees a great deal. Look at comparable resale prices in the area and think long term.

For more local insight, check out:
👉 How Safe Are Off-the-Plan Investments in Thailand?
👉 How to Evaluate Property Developers Before You Buy

🌏 Off-the-Plan Across Southeast Asia: What Varies by Country

While the concept of buying off-the-plan is fairly similar across the region — you’re securing a property before it’s built, often with staged payments — the legal setup, risks, and rental potential can vary a lot depending on where you’re buying.

Vietnam tends to attract long-term capital growth buyers, Thailand is well-suited to lifestyle and hybrid investor use, and Bali has strong short-term rental appeal (but also the most legal grey areas for foreign buyers).

If you’re comparing options across countries, this table gives you a quick sense of how the rules and realities stack up.

📊 Off-the-Plan Property: Vietnam vs Thailand vs Indonesia

Conclusion: Is Off-the-Plan Right for You?

Buying off-the-plan can be a great way to access a modern, well-designed home at a better price point — with more flexibility around payments and a chance to grow value during construction. But it only works when you go in with your eyes open.

This isn’t a shortcut. It’s a different kind of buying process — one that requires patience, due diligence, and a bit of faith in the team behind the build. When it works, it’s a smart long-term move. But if you’re not prepared, it’s easy to misread the fine print, overestimate returns, or end up waiting longer than you expected.

If you’re considering an off-plan property in Thailand:

• Ask the right questions
  
• Read the contract carefully
  
• Understand your ownership structure
  
• And be realistic about the timeline
  

If that still feels right for your goals, then you’re on solid ground — and there’s some great value to be found, especially in emerging areas.

💬 Need help reviewing a project or figuring out if it’s the right move?

We help buyers assess off-the-plan opportunities across Thailand — from legal checks to area research and developer background.
📩 Reach out for a consult or grab our free Off-Plan Buyer Checklist to get started.

❓ Frequently Asked Questions

1. What is an off-the-plan property?

An off-the-plan property is a home or investment that you buy before it’s built. You purchase based on floor plans, 3D visuals, and a developer’s timeline, not a finished unit. It’s common across Southeast Asia in condo and villa projects.

2. Why do people buy off-the-plan properties?

People buy off-the-plan to access lower prices, modern layouts, and staggered payment plans. It allows buyers — especially foreigners — to secure a property with less upfront capital and potentially benefit from price increases during construction.

3. Is buying off-the-plan risky?

It can be — especially if you don’t check the developer’s track record, legal structure, or contract terms. Risks include construction delays, lower-than-promised build quality, or unclear ownership rights. Research and legal review are key.

4. How long does it take for off-the-plan property to be completed?

Most off-the-plan projects in Southeast Asia take 12 to 30 months to complete. Timelines vary depending on the project size, permits, weather, and developer reliability.

5. Can foreigners buy off-the-plan property in Southeast Asia?

Yes, but laws vary by country.

• In Thailand and Vietnam, foreigners can own condos under specific rules.
  
• In Indonesia and Cambodia, foreigners often buy leasehold or through structured agreements.
  Always check the local legal limits and ownership models.
  

6. Do I need a lawyer to buy off-the-plan?

Yes — especially if you’re buying overseas. A local lawyer can check the developer’s licensing, review contracts, and ensure your payments and ownership are protected. It’s a key part of reducing risk.

7. Can I rent out an off-the-plan property once it’s completed?

In most cases, yes — but you’ll need to check local rental laws, zoning rules, and building management policies. Some projects are designed for short-term rentals (like Airbnb), others are not.