When buying or investing in real estate—especially in competitive markets like Dubai—you may come across the term EOI or Expression of Interest. But what exactly does it mean? How is it used, and what are the legal or financial implications?
This article offers a comprehensive explanation of EOI in the real estate context, its purpose, how it differs from other agreements, and how buyers—particularly international ones—should handle it wisely.
1. What is an EOI in Real Estate?
EOI (Expression of Interest) is a non-binding document submitted by a potential buyer to show genuine interest in purchasing a property. It typically includes the buyer’s details, preferred unit, budget or offer price, and in some cases, a refundable or non-refundable deposit to reserve the unit temporarily.
Key Elements of an EOI:
- Buyer’s name and contact information
- Property details (project name, unit type, size)
- Proposed price or budget
- Expected payment terms
- Signature and date
- Sometimes includes a token amount or reservation fee
2. What Is the Purpose of an EOI?
The EOI serves multiple purposes for both the buyer and the developer (or seller):
For Buyers:
- Secure their interest in a unit before full booking or launch
- Gain priority during project pre-launch or off-plan sales
- Lock-in preferred units or pricing before official sale begins
For Developers:
- Assess demand for a new project or phase
- Manage inventory during high-interest launches
- Pre-qualify serious buyers before issuing sales agreements
EOIs are especially popular in off-plan launches and high-demand projects in Dubai, where inventory may sell out within hours.
3. Is an EOI Legally Binding?
In most cases, an EOI is not legally binding, meaning it does not obligate either party to complete the transaction. However, it may include a reservation fee, and depending on the developer’s policy, this fee can be:
- Refundable: Returned if the buyer cancels before signing the official sales agreement (SPA)
- Non-refundable: Forfeited if the buyer changes their mind or fails to proceed
Important: Always read the EOI terms carefully or consult a real estate advisor before signing.
4. EOI vs. MOU vs. SPA: What’s the Difference?
| Term | Meaning | Binding? | Purpose |
|---|---|---|---|
| EOI | Expression of Interest | Usually no | Show interest, reserve unit |
| MOU | Memorandum of Understanding | Semi-binding | Outline mutual intent & terms |
| SPA | Sales and Purchase Agreement | Legally binding | Final agreement for purchase |
The EOI is the first step in the property buying journey, especially in off-plan deals. Once the EOI is accepted, the developer may invite the buyer to sign the SPA and make the first installment payment.
5. When Do You Use an EOI in Dubai Real Estate?
- During off-plan property launches by top developers like Emaar, Sobha, DAMAC, Nakheel
- In pre-launch phases when prices and availability are limited
- In bulk investments or exclusive investor offers
- For international buyers who wish to reserve units remotely
Many Dubai developers open EOI submissions before the official launch to gauge demand and allocate units accordingly.
6. How Much Does an EOI Cost?
The EOI fee (if any) varies by developer and project, but typically ranges from:
- AED 5,000 to AED 50,000 for standard units
- AED 100,000+ for luxury units or penthouses
Some developers treat the EOI amount as part of the down payment, while others may treat it as a separate reservation fee.
7. Can You Cancel an EOI?
Yes—in most cases, buyers can cancel their EOI, especially if:
- The developer has not yet issued the SPA
- The unit offered is different from the one requested
- The buyer changes their investment decision
However, the refund of the EOI amount depends on the developer’s policy. Some developers refund within 7–14 business days; others deduct admin charges or treat it as non-refundable.
8. Advantages of Submitting an EOI
- Early Access to Projects: Beat the crowd during high-demand launches
- Priority Unit Selection: Secure best layouts or views
- Time to Review Terms: Allows buyers to prepare finances before committing
- Less Pressure: Offers breathing room before signing the full SPA
9. Tips for Buyers Submitting an EOI in Dubai
- Work with a trusted real estate broker who has direct access to the developer
- Get a copy of the EOI document and check the terms carefully
- Understand refund policies in case you cancel or decline the final offer
- Make payment through official developer channels (not to third-party individuals)
- Verify your unit and price details before moving to SPA
An Expression of Interest (EOI) is an essential first step in the real estate buying process—especially in a fast-moving and investor-friendly market like Dubai. While it’s generally not legally binding, it shows commitment and gives buyers a competitive edge in securing desirable units.
For international buyers and investors, understanding the terms, implications, and best practices around EOIs can make the difference between a smooth transaction and a missed opportunity.
Whether you’re a seasoned investor or a first-time buyer, submitting an EOI strategically—with proper guidance—can help you secure valuable real estate assets in Dubai’s thriving market.