How to avoid being cheated when buying real estate in Dubai

Projects in the UAE have a high investment potential, so buying real estate in Dubai with integrity is in high demand among foreigners. The issue of security when executing a contract remains one of the important ones when making a decision. Let us consider whether there are risks and whether specialists can level them. For example, it is good to know how realtors cheat when buying an apartment or villas in Dubai. Knowing the peculiarities of the local market and the rules of transactions will help to ensure their transparency and reliability.

Content:

• General safety rules
• Analysing the Dubai real estate market
• Government support measures for buyers
• Choosing a broker
• Document verification
• Reliable real estate developers
• Power of attorney in a remote transaction
• Conclusion

General safety rules

Before buying an apartment in Dubai, you should consider the key important points in any country. Those include:

• The authenticity of the documents confirming the ownership of the housing.
• A realtor's license. Unscrupulous persons lacking permission for the relevant activities can pass themselves off as agents.
• Thorough inspection of the selected object for encumbrances, legal disputes and utility debts.

Researching the developer's reputation when purchasing a home under construction will also be helpful. The interests of investors in the UAE are protected at the legislative level: developers must reserve sufficient funds for construction in a separate account. However, delay risks can only partially be ruled out, so choosing a developer with a reliable business reputation is essential. Large private and state-owned developers fully fulfil their obligations and ensure high quality of work.

Analysing the Dubai real estate market

A thorough market analysis before buying is equally important. It will help you understand price trends and choose the most suitable option, avoiding overpriced properties. Housing prices in the Emirate have been rising steadily for several years. They are forecast to increase by 5–7% this year. This reflects the steady demand for property in Dubai from both local and foreign investors and promises good returns to investors. Investing in housing under construction in developing areas where prices are rising fastest is particularly favourable.

It is essential to realise that market volatility in the UAE, as in any country, depends on many factors. The market is cyclical, and a downturn can follow high growth. This is not a reason to panic, as, after each downturn, prices rise again at a higher level. However, this probability should be considered and not count on such an investment as the only source of income. At the same time, the trends of recent years confirm that the local market allows you to profitably expand your investment portfolio and earn capitalisation of housing costs.

Government support measures for buyers

The government protects the interests of the property buyer in the UAE. The set of measures includes several key aspects that ensure the safety and transparency of transactions:

• Regulation of property developers and agents. The UAE has strict requirements for property developers and agents. Developers must be licensed and registered with the Emirate's Land Department (in Dubai, the DLD). Brokers must also be accredited and licensed by the Real Estate Regulatory Agency (RERA).
• Title Verification. The DLD provides complete information on the status of a particular property, including ownership rights, thus avoiding fraud and double sales.
• Standard Contracts. RERA has developed standardised forms of sale and purchase agreements to ensure uniformity and reduce the risk of incorrect paperwork.
• Permission to sell property under construction. The sale of housing before its construction is possible only after obtaining all necessary approvals and licences and after registration of the project with RERA.
• Dispute Resolution. In case of disputes between buyers and sellers, Dubai has a system in place to resolve them, including specialised real estate courts.

This set of measures makes investing in property safe. Mind it to avoid your case becoming another story of real estate scams and their exposure.

Choosing a broker

As local legislation has its specifics, it is safer to use the services of licensed brokers. They are thoroughly familiar with all the transaction details and act as a guarantor of its legal purity. All agents must be registered with RERA. This means that to check the broker's authenticity, you can refer to the official list on the agency's website or use the official Dubai REST app.

Brokers play a crucial role in securing the contract. They carry out:

• Checking the legality of all aspects of the deal, including legal impediments to the contract.
• Analysing all documents related to the property acquisition, including the sale and purchase agreement, certificate of title, pledge documents (if any) and ensuring they are authentic and compliant with the law.
• Checking encumbrances, such as liens or mortgages and utility arrears.
• Agreeing the transaction terms, including price, payment terms, transfer of title, the parties' obligations to maintain the property until closing and other important points.
• Representing the client in negotiations with the seller, agents or other parties.
• Legal support at all transaction stages, from initial consultations to title registration.

An experienced and honest specialist is interested in every client. He will always tell you about the object and location and highlight the advantages and disadvantages of a particular property in Dubai. In other words, they help in buying real estate without being scammed in Dubai.

Document verification

A legal check ensures that all aspects of buying real estate in UAE comply with local legislation. This guarantees that mortgages or utility debts do not burden the Dubai real estate. Suppose the apartment is in a complex under construction. In that case, it is essential to check all agreements and terms and conditions with the developer, including delivery dates and the work quality.

In order not to doubt the purity of the secondary market deal, the following documents should be verified:

• Certificate of Title Deed for immovable property from the seller (Title Deed for a finished object and OQOOD for an under-construction object). This document must be registered with the Land Department.
• Seller's Passport. It is necessary to carefully compare the personal data provided with the information in the certificate of title to ensure that he is the legal owner.
• Presence or absence of encumbrances. You can perform this check through the Land Department. The seller's party must provide a No Objection Certificate (NOC) from the developer when executing the agreement.
• Agreement of Sale. This must comply with legal requirements and contain all essential details, including price and terms and conditions of payment.

This list is a go-to checklist for well-informed investors knowing how to avoid being cheated when selling an apartment.

Reliable real estate developers

An essential aspect of choosing a developer is to check the business's reputation. Studying the objects of specific companies, you need to pay attention to the presence of experience and the number of already commissioned complexes. Also, when buying an apartment in Dubai, reviews will help to get an idea of the quality of construction.

Among the most successful companies are the following construction companies:

• Damac Properties. This developer has implemented many projects, such as Safa One and Safa Two, and developed the communities of Damac Hills, Damac Hills 2 and Damac Lagoons.
• This company created the famous Palm Jumeirah artificial archipelago and areas such as Jumeirah Village Circle, Al Furjan, and Discovery Gardens.
• The developer is part of Dubai Holding. Its portfolio includes City Walk, Bluewaters Island, and Cherrywoods Townhouses projects. Meraas offers attractive payment terms for investors.
• Emaar Properties. The company, which built the world's tallest skyscraper, Burj Khalifa, and the massive Dubai Mall, is developing entire communities, such as Dubai Creek Harbour, Dubai Hills Estate, and Arabian Ranches, and offers properties ranging from townhouses and villas to studios and apartments in Dubai.

These are just a few examples of extensive construction holdings from which buying real estate in Dubai reviews describe as safe.

Power of attorney in a remote transaction

The law requires a proxy for international investors buying a secondary UAE property remotely. Your representative can be a friend or relative physically present in the UAE or a representative of the agency you have asked for help. In either case, you must execute a notarised power of attorney to purchase the property. It can be a document with an electronic signature: in the UAE, it has the same legal force as a paper copy. However, it is essential to note that your broker cannot act in this role. A colleague of his can be the proxy. This is a common practice in large companies active in online transactions.

Conclusion

Cooperation with licensed agents makes the purchase transparent, fast, safe, and avoids risks. Our portal offers a variety of properties. A convenient search system allows you to select the type, area, and cost of interest using filters. Specialists will advise on all issues of choosing a house in Dubai and help with the purchase. Familiarise yourself with the offers of foreign housing sales right now!