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The crucial reasons making Dubai extremely safe for investment in the real estate sector are:

  1. Regular involvement of the Government of Dubai in making all processes, such as property purchase, property transfer, property rent, etc easier and entirely transparent.
  2. Direct participation of the Government in building reliable market regulations.
  3. Powerful Laws and Bylaws are issued by the Government regularly.

Moreover, the “Smart Approach” of Dubai deserves recognition, where the major communication with necessary entities is processed digitally and instantly.

In this publication, I’d like to highlight important tools introduced by the Government, making an investment in a real estate sector widely transparent.

FACT. All funds paid to a Developer to purchase a property never goes to their general account? Instead, it goes to the Escrow Account monitored by the Government.

Tool: Escrow

For: Investors in Properties Under Construction

Description: Escrow Account is a dedicated account for a specific real estate project that is under construction where all funds are deposited in.

Safety: While purchasing a property, funds are never paid directly to a developer. All funds are deposited into the Escrow Account that is managed and supervised by the Dubai Land Department.

FACT. If you purchase a property under construction, the Sales and Purchase Agreement from a Developer will not be the only document proving your ownership rights? Instead, the Developer must register your ownership rights in OQOOD System.

Tool: Oqood

For: Investors in Properties Under Construction

Description: All real estate transactions for a property that is not completed, are registered in the Oqood system.

Safety: Investors do not require to only rely on the Sales and Purchase Agreement of a Developer that acts as the ownership document. The ownership document of incomplete property in Dubai is guaranteed and regulated by the Government via Oqood System.

FACT. All real estate projects can be tracked on the official Government website including completion status, latest reports, and photos.

Tool: RERA Project Tracking

For: Investors in Properties Under Construction

Description: All real estate projects under construction are closely monitored by the Government via the RERA entity that falls under the Dubai Land Department. RERA determines the completion status of the project by conducting an audit of projects.

Safety: Investors can see the official project completion status on the Dubai Land Department website, along with the latest photos and inspection reports.

FACT. Real Estate purchase transaction can be completed in up to 1-2 hours.

Tool: Registration Trustee

For: Property Sellers and Buyers

Description: Registration Trustees are entities licensed by the Dubai Land Department to conduct property transfers within the shortest possible time via the Government system.

Safety: Buyer visiting Registration Trustee comes to know that the Seller or PAO is the actual selling party, that makes the transaction legitimate. Overall all work can be completed in up to 1-2 hours.

FACT. Service Charges and Rental Prices are controlled by the Government via Official Indexes.

Tool: RERA Indexes

For: Property Owners and Tenants 

Description: RERA regularly determines Rental and Service Charge Indexes to control prices (www.dubailand.gov.ae).

Safety: No Developer can determine Service Charges the way they want and no landlord can unfairly inflate rents on renewal.

FACT. You can simply verify the authenticity of anything or anyone in the real estate transaction, including Company Trade License, Company Legitimacy, Broker, Project, Representative, Property, and so on.

Tool: Online Verification of Documents

For: Anyone

Description: Dubai Government has launched online verification platforms, where the authentication of documents can be verified. For example, Dubai REST App, and Dubai Land Department (www.dubailand.gov.ae) website allow verification of Real Estate Brokers, Real Estate Companies, Property Owners, Property Management Companies, Property Developers, etc.

Before purchasing any project, you can also check the legal status of such a project, including the completion status, anticipated handover date, and so on.

Another good example is the Dubai Courts website (www.dc.gov.ae) allowing to verify the validity of Power of Attorneys.

Moreover, the Trade Licenses of the companies can be verified via the Dubai Economic Development website (www.dubaided.gov.ae).

Safety: Everyone is able to verify the authentication of the party he’s dealing with.

FACT. The landlord can verify the legal background of the tenant before agreeing to sign the Tenancy Contract.

Tool: RDC Background Verification

For: Landlords

Description: RDC function (in Dubai REST App) allows to check did the tenant has any legal cases prior.

Safety: Before signing a Tenancy Contract with an unknown person, landlords are able to verify the legal background of a potential tenant.

FACT. All rental agreements in Dubai are registered in the Government system called Ejari including all clauses of the contracts that keep no spaces for parties to manipulate with agreements.

Tool: Ejari

For: Landlords and Tenants

Description: Every Tenancy Contract in Dubai is registered with the Government via the Ejari system processed by a dedicated typing center. Ejari registration means making your tenancy legal.

Safety: Ejari registers the entire agreement between the tenant and the landlord, keeping no spaces for illegal manipulations. In case of breach of the agreement, the legal actions will be taken accordingly.

By Akhmed Idigov

Interesting Article by Akhmed Idigov about two main payment modes popular in Dubai 2020