16.04.2025, 14:19

How to Avoid Scams When Buying Off-Plan Property in Dubai: Smart Steps for Secure Investments

Dubai’s booming off-plan real estate market offers investors attractive opportunities for capital growth, flexible payment plans, and modern community living. However, the rapid pace of development has also drawn fraudulent schemes and unlicensed sellers. To avoid scams and ensure your investment is protected, it’s vital to follow certain precautions—starting with one of the safest options: working with licensed real estate companies.

Here’s how to protect yourself and make smart, risk-managed decisions when buying off-plan property in Dubai.

1. Prioritize RERA-Registered Real Estate Companies
While there are multiple ways to verify and purchase property, engaging with a licensed real estate firm adds a strong layer of protection. These companies are regulated by the Real Estate Regulatory Agency (RERA) and are required to deal only with approved projects and verified developers. They also offer structured processes, proper documentation, and assistance with legalities.

You can confirm an agent or brokerage's registration through the Dubai Land Department (DLD) or the Dubai REST app.

2. Confirm the Escrow Account Setup
Each approved off-plan project in Dubai must have a DLD-registered escrow account. Your payments should only be made to this account—not directly to a developer or broker. This legal mechanism ensures your money is used only for the project’s construction and can be refunded if the project fails to complete.

3. Review the Sales Agreement Thoroughly
Whether buying through a brokerage or directly from a developer, carefully study the Sales and Purchase Agreement (SPA). It should clearly outline construction timelines, penalties for delays, refund clauses, and developer obligations. Consulting a real estate lawyer adds another layer of due diligence.

4. Avoid Unverified Brokers and High-Pressure Sales
Be wary of agents who cannot provide a valid RERA ID or those pushing for fast decisions with promises of deep discounts. Licensed agents are held to professional standards, while unverified intermediaries often promote unregistered or high-risk developments.

5. Visit the Project Site or Developer Office
Whenever possible, visit the construction site, sales gallery, or developer’s office. Legitimate developers will share construction updates, show model units, and provide access to documentation. If you're buying remotely, request a live virtual tour or rely on a trusted local firm.

6. Register the Property with DLD (Oqood Certificate)
After signing the SPA and making initial payments, ensure your off-plan purchase is registered with the DLD through the Oqood system. This official document confirms your ownership and links your investment to the approved project and escrow account.

Conclusion
Buying off-plan property in Dubai offers strong upside—but only when approached with informed caution. While it’s not the only option, working with a licensed real estate company is one of the most reliable ways to navigate the process securely. Combine this with independent legal review, direct verification of escrow accounts, and DLD registration to ensure a legitimate, protected investment journey.