Dubai’s property market offers huge opportunities — and, unfortunately, some serious risks. From fake off-plan launches to unlicensed agents, real estate scams in Dubai can cost investors hundreds of thousands of dollars.
🚩 1. “Too Good to Be True” ROI Promises
If someone guarantees 15–20% ROI in Dubai — especially in off-plan investments — you’re likely facing property fraud.
Reality: Net yields in Dubai average 5–7%.
What to do:
- Ask for actual resale history of similar units
- ✅ Request rental income breakdown + service charges
- ✅ Compare with market data on Property Monitor or DXBinteract
🚩 2. No RERA Registration or Oqood Project Tracking
If the project or developer isn’t RERA-registered, it’s not legally approved.
Oqood is the official pre-registration system for off-plan units in Dubai.
✅ What to do:
- ✅ Check developer license on dubailand.gov.ae
- ✅ Use the Oqood system to verify project registration and escrow account
- Don’t proceed until you see it in the system.
🚩 3. Money Asked to Be Sent to Personal or Foreign Accounts
You should never transfer funds to personal accounts, foreign IBANs, or wallets like crypto or Wise.
✅ What to do:
- ✅ Only pay into approved escrow accounts linked to the project
- ✅ Ask for the escrow account certificate issued by RERA
🚩 4. Misleading or Staged Property Photos
Scammers often use renderings, stock images, or fake sea views to sell units that look nothing like the visuals.
✅ What to do:
- ✅ Request real geo-tagged photos or a live video walkthrough
- ✅ Ask to visit the site or send a local agent you trust
🚩 5. No Title Deed or Sales Purchase Agreement (SPA)
If the seller or agent can’t provide a clear Title Deed (secondary) or SPA (off-plan) — walk away.
That’s your only legal proof of ownership.
✅ What to do:
- ✅ Ask for the Title Deed or pre-registration certificate from DLD
- ✅ Verify the seller or project name in the official DLD system
🚩 6. Suspiciously Flexible Commissions or Cashback Offers
If the agent promises “cash back”, heavy commission refunds, or under-the-table rewards — it’s often tied to non-transparent incentives or illegal practices.
✅ What to do:
- ✅ Ask for the commission agreement and RERA Form A or B
- ✅ Work only with RERA-licensed agents listed on the DLD portal
🚩 7. No Transparent Payment Plan
Some scam developers create fluid, vague, or shifting payment schedules. If milestones aren’t backed by actual construction or DLD regulations — your money may disappear.
✅ What to do:
- ✅ Ask for the payment plan as an annex to SPA
- ✅ Each milestone should be tied to construction stage approvals verified by RERA
🚩 8. Developer Has a Poor Delivery Track Record
A brand-new name in the market with no past projects = risk.
A well-known developer with three delayed handovers = bigger risk.
✅ What to do:
- ✅ Search past project delivery timelines on forums, investor groups, and DLD reports
- ✅ Avoid developers with unresolved litigation or escrow violations
🚩 9. Verbal Promises Not Reflected in Contracts
“We’ll include parking.”
“DLD fees are on us.”
“We guarantee 10% rent return.”
If it’s not in the SPA, it doesn’t exist.
✅ What to do:
- ✅ Insist on all incentives being included in your signed agreement
- ✅ Have a legal advisor review the contract before signing
🚩 10. “Pre-Launch” Deals Without Any Approval
Scammers push “pre-launch” units — before permits, master plan approval, or escrow setup.
They collect money, disappear, or deliver unfinished shells.
✅ What to do:
- ✅ Ask for proof of master plan approval
- ✅ Check if developer has DLD/Nakheel permit numbers
- ✅ No escrow = no deal
⚖️ BUSTED: Broker Talk vs Legal Reality
| What the broker says | What must be on paper |
|---|---|
| “You’ll get 10% ROI minimum” | Rental simulation with expenses, in writing in SPA |
| “It’s a guaranteed buyback” | Buyback clause in contract with timeline and exit value |
| “Project is approved, no need to check” | Official Oqood or DLD permit, escrow account proof |
| “Parking, furniture, DLD fee — all included” | Each item listed in SPA annex or addendum |
| “Transfer to our account, we’ll handle it faster” | Payment must go directly to project escrow account, under your name |
✅ Final Check-List: 12 Things to Verify Before Signing a Contract
Dubai Property Due Diligence Checklist. Verify developer reliability and property safety.
🏢 Developer Verification
Verify developer’s registration with Dubai’s Real Estate Regulatory Agency (RERA)
Check completed projects and delivery timeline history
Review developer’s financial statements and market reputation
📄 Property Documentation
Verify property ownership and registration status with Dubai Land Department
Check all construction permits and approvals
Review payment schedule and verify RERA approval
🏗️ Project Status
Verify current construction stage and completion percentage
Confirm existence and status of project escrow account
Review projected completion date and construction milestones
📍 Location Analysis
Check planned and existing infrastructure in the area
Verify proximity to schools, hospitals, shopping centers, etc.
Research future development plans for the area
Due Diligence Summary
❓ FAQ: Dubai Real Estate Scams
Not if you verify RERA registration, escrow, and developer history. Risk comes from ignoring red flags.
Check their RERA license number at dubailand.gov.ae. They must have Form A for listings.
Not legally. If they do — it must be through an official contract amendment signed by both parties.
Oqood is the official system for off-plan project registration. If your unit isn’t in Oqood, it doesn’t legally exist.
You’re highly exposed. Without legal documentation, you may not be able to claim ownership or get your money back.
