How to avoid scams when buying in Dubai?

Authored by the expert who managed and guided the team behind the Dubai Property Pack

Yes, the analysis of Dubai's property market is included in our pack

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Dubai. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Sands of Wealth, we explore the Dubai real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in areas like Downtown Dubai, Dubai Marina, and Business Bay. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Jean-Charles Salvin 🇫🇷

Co-Founder, Best Dubai Condos

With 13 years of real estate expertise, Jean-Charles co-founded BestDubaiCondos to guide clients in making smart, strategic property investments. As a seasoned realtor and trusted advisor, he focuses on creating personalized investment plans designed to maximize profits through Airbnb rentals and long-term income opportunities in Dubai's most desirable locations. We talked with him at the end and added his insights to improve the blog post, making it clearer and more personal.

Have you checked that the real estate developer is officially registered with the Dubai Land Department?

Verifying developer registration is the most critical step to avoid property scams in Dubai's real estate market.

Every legitimate developer in Dubai must be registered with the Dubai Land Department (DLD) and hold a valid license through the Real Estate Regulatory Agency (RERA). You can verify this registration status using the DLD's REST mobile app or through the official RERA license verification portal on their website.

The verification process takes less than 5 minutes and provides you with the developer's license number, registration status, and any disciplinary actions taken against them. As of September 2025, over 200 registered developers operate in Dubai, while hundreds of unlicensed entities attempt to sell properties illegally.

Unregistered developers cannot legally sell properties, cannot access official escrow accounts, and cannot provide valid ownership documents. Working with an unregistered developer guarantees you will lose your money and never receive legal ownership of any property.

It's something we develop in our Dubai property pack.

Have you verified the property is listed with a valid Oqood if it's off-plan?

Off-plan properties in Dubai must have a valid Oqood certificate to be legally sold to buyers.

The Oqood is a pre-registration certificate issued by the Dubai Land Department that confirms the developer has the legal right to sell units in a specific project before construction completion. You can verify Oqood validity through the DLD's official Oqood portal, the REST mobile app, or by visiting DLD offices directly.

A valid Oqood certificate displays the project details, unit specifications, developer information, and the official registration number. Properties without valid Oqood certificates are either fake projects or units being sold illegally by unlicensed parties.

As of September 2025, approximately 40% of property scams in Dubai involve fake off-plan projects without proper Oqood certificates. These scams typically collect large deposits from buyers and disappear without delivering any property or legal documentation.

Never pay any money for off-plan properties without first obtaining and independently verifying the Oqood certificate number through official DLD channels.

Do you know the exact escrow account number where your payments must go?

All payments for off-plan properties in Dubai must go through registered escrow accounts managed by the Dubai Land Department.

The escrow account number must be clearly stated in your Sale and Purchase Agreement (SPA) and can be independently verified through the DLD's REST app or official website. This escrow system protects buyers by ensuring developers can only access funds when construction milestones are completed and verified by DLD inspectors.

Legitimate developers will provide you with the exact escrow account number, bank details, and payment instructions that match DLD records perfectly. Any request to pay to personal accounts, company accounts not registered with DLD, or cash payments indicates a scam operation.

The escrow account system in Dubai holds over AED 15 billion in buyer funds as of September 2025, protecting thousands of off-plan purchases from developer defaults or fraud. Payments outside this system offer zero legal protection and guaranteed loss of funds.

Confirm the escrow account details independently with DLD before making any payments, regardless of what the developer or agent tells you.

Have you reviewed the developer's track record for past projects and delivery timelines?

Researching developer track records reveals their ability to complete projects on time and handle buyer relationships professionally.

Research Area	What to Check	Red Flags to Avoid
Previous Projects	Number of completed developments in Dubai	No completed projects or only announcements
Delivery Timeline	Average delay between promised and actual handover	Projects delayed over 2 years consistently
Quality Standards	Visit completed projects to inspect build quality	Poor construction quality or unfinished amenities
Buyer Reviews	Online reviews and testimonials from actual buyers	Multiple complaints about non-delivery or poor service
Legal Issues	Check for regulatory actions or DLD penalties	History of license suspensions or legal disputes
Financial Stability	Developer's financial backing and project funding	Recent bankruptcy or financial difficulties
Market Reputation	Recognition in real estate industry and awards	Negative media coverage or industry warnings

Established developers in Dubai typically complete projects within 6-12 months of promised delivery dates and maintain transparent communication throughout construction phases.

Have you confirmed that the real estate agent is licensed with RERA?

All real estate agents operating legally in Dubai must hold current licenses from the Real Estate Regulatory Agency (RERA).

You can verify agent licenses through RERA's online verification system by entering their license number or name in the official database. Licensed agents display their RERA numbers on business cards, advertisements, and office materials, and this information must match exactly with RERA records.

Licensed agents undergo professional training, maintain insurance coverage, and follow strict ethical guidelines enforced by RERA. They can be held accountable for misconduct through official complaint mechanisms and face license suspension or revocation for fraudulent activities.

Unlicensed individuals cannot legally represent buyers or sellers in Dubai property transactions, cannot access DLD systems for property transfers, and cannot provide legitimate legal documentation. Working with unlicensed agents typically results in invalid contracts, inflated prices, and complete loss of legal recourse.

As of September 2025, RERA maintains over 15,000 licensed real estate professionals in Dubai, while thousands of unlicensed individuals attempt to conduct illegal property transactions.

Have you checked the total transfer fees and registration costs?

Understanding all fees involved in Dubai property purchases prevents surprise costs and pricing manipulation by dishonest agents.

The standard Dubai Land Department transfer fee is 4% of the property value, split equally between buyer and seller (2% each). Additional costs include mortgage registration fees (0.25% of loan amount), real estate agent commission (typically 2% paid by seller), and various administrative charges totaling approximately AED 10,000-15,000.

For off-plan purchases, buyers pay a 4% DLD fee upon completion, plus any applicable mortgage registration fees if financing is involved. These fees are standardized by DLD and cannot be legally increased by developers or agents.

Scammers often inflate these standard fees or invent additional charges to extract more money from buyers. They might claim special "expedited processing fees," "foreign buyer surcharges," or "exclusive access fees" that don't exist in Dubai's legal framework.

Request itemized fee breakdowns from multiple sources and compare them with official DLD fee schedules available on their website to identify any fraudulent charges.

Do you have a written Sale and Purchase Agreement reviewed by an independent lawyer?

A comprehensive Sale and Purchase Agreement (SPA) protects your legal rights and investment in Dubai real estate transactions.

Your SPA must include specific details about the property location, unit specifications, total price, payment schedule, completion timeline, penalty clauses for delays, and handover procedures. This document becomes legally binding once signed and registered with relevant authorities.

An independent Dubai-based lawyer should review your SPA before signing to identify unfavorable terms, missing clauses, or potential legal issues. This lawyer must not be affiliated with the seller, developer, or real estate agent to ensure objective advice protecting your interests.

Common SPA issues include unrealistic completion dates, excessive penalty clauses for buyer defaults, limited developer liability for delays, unclear specifications about finishes and amenities, and missing clauses about title deed transfer procedures.

Professional legal review costs typically range from AED 5,000-15,000 but can prevent losses of hundreds of thousands of dirhams from fraudulent or poorly structured agreements. It's something we develop in our Dubai property pack.

Have you confirmed the property has no outstanding debts or mortgages?

Properties with hidden debts, unpaid service charges, or existing mortgages create legal complications and financial liabilities for new buyers.

Request official documentation from the Dubai Land Department showing clear title ownership and no outstanding liens or mortgages on the property. For existing properties, obtain service charge clearance certificates from building management companies confirming all fees are current.

Sellers must provide NOC (No Objection Certificate) documents from relevant authorities, mortgage clearance letters from banks if applicable, and updated statements showing zero outstanding balances on utility accounts and community fees.

Properties in Dubai communities often accumulate significant service charge debts that transfer to new owners upon purchase. These charges can range from AED 10,000-50,000 annually depending on the community and building amenities.

Conduct independent verification of all clearance documents through official channels rather than relying solely on seller-provided paperwork, as forged clearance certificates are common in property scam operations.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Have you compared market prices per square foot in the same community?

Price comparison prevents overpaying for properties and identifies potential scam operations offering unrealistic deals.

Research recent sale prices in the same building or community using DLD transaction data, property portal listings, and multiple real estate agent opinions. Calculate average prices per square foot for similar unit types, floor levels, and view categories to establish fair market value.

Properties priced more than 20% above community averages require additional scrutiny and justification from sellers. Conversely, properties priced significantly below market rates often indicate distressed sales, hidden problems, or fraudulent listings designed to attract buyers for deposit collection schemes.

As of September 2025, average property prices in popular Dubai communities range from AED 1,200-3,500 per square foot depending on location, amenities, and building quality. Premium locations like Downtown Dubai and Dubai Marina command the highest prices, while emerging areas offer better value propositions.

Use multiple data sources for price comparisons including Property Finder, Bayut, Dubai Land Department transaction records, and local real estate agent market reports to ensure accuracy.

Have you inspected the property personally or arranged third-party inspection?

Physical property inspection reveals actual conditions and identifies discrepancies between marketing materials and reality.

1. **Structural Elements**: Check walls, ceilings, floors for cracks, water damage, or poor construction quality that could indicate serious building issues2. **Mechanical Systems**: Test air conditioning, plumbing, electrical systems to ensure they function properly and meet Dubai Municipality standards 3. **Finishing Quality**: Inspect paint, tiles, fixtures, doors, windows for defects or substandard materials that reduce property value4. **Building Amenities**: Verify promised amenities like swimming pools, gyms, parking spaces actually exist and are maintained properly5. **Documentation Match**: Confirm the actual unit specifications match exactly with SPA descriptions including square footage, layout, and included fixtures

For off-plan properties, arrange inspection during different construction phases to monitor progress and quality standards. Professional building inspectors in Dubai charge AED 2,000-5,000 for comprehensive reports but can identify issues worth tens of thousands in repairs.

Properties that sellers refuse to allow inspections or impose restrictions on inspection timing often hide significant problems or don't actually exist as advertised.

Have you verified the payment schedule aligns with construction milestones?

Legitimate payment schedules for off-plan properties tie installments to verified construction progress rather than arbitrary calendar dates.

Standard Dubai payment schedules typically require 20% down payment, followed by installments at foundation completion (10%), structural completion (15%), finishing phase (15%), and final payment upon handover (40%). These milestones must be verified by independent DLD inspectors before payment requests.

Scam operations often demand large upfront payments (50%+ of total price) or installments not tied to actual construction progress. They may request payments before construction begins, during periods when no work is visible, or according to aggressive schedules that don't allow proper milestone verification.

All legitimate payments must go through registered escrow accounts, with clear documentation showing which construction milestone triggers each installment. Developers cannot access escrow funds until DLD confirms completion of the corresponding construction phase.

It's something we develop in our Dubai property pack.

Have you verified the final handover process includes Title Deed issuance?

The Title Deed issued by Dubai Land Department represents your complete legal ownership of the property and must be obtained during the handover process.

Upon project completion, developers must facilitate Title Deed transfer from their name to your name through official DLD procedures. This process requires final payment completion, mortgage documentation (if applicable), and verification that all construction and legal requirements are satisfied.

The Title Deed document contains your name as the registered owner, complete property details including plot number and area, any mortgage or lien information, and official DLD stamps confirming legal ownership. This document is essential for future sales, rental agreements, or using the property as loan collateral.

Properties handed over without proper Title Deed transfer leave buyers without legal ownership rights, making future transactions impossible and creating vulnerability to ownership disputes. Some scam operations provide fake ownership documents that look official but aren't registered with DLD.

Verify Title Deed authenticity through DLD's online verification system and ensure the document shows your name as the current owner with no outstanding claims or restrictions.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Dubai Land Department - Validate Real Estate Licenses and Permits
2. QBD - How to Verify and Evaluate Real Estate Developer
3. HomeCubes - Dubai Land Department Guide
4. The Law Reporters - Guide to Verifying Off-Plan Property Registration Status
5. Valorisimo - How to Read a DLD Oqood Certificate
6. Totality Estates - How to Verify Escrow Account Deposits
7. Trustin - Escrow Account Dubai FAQs 2025
8. Next Dubai - What is an Escrow Account
9. Kredium - How to Check DLD Project Status in Dubai
10. Two Continents - The Dubai Land Department