Real Estate
Tips to Safeguard Yourself from Real Estate Scams in Dubai

Tips to Safeguard Yourself from Real Estate Scams in Dubai

DATE: 13 Dec, 2023

Thanks to the promising opportunities that Dubai’s real estate market offers it has become the centre of attraction for global investors, but with such a high demand amongst investors to park their assets results also result in them being exposed to significant risks. In this article, we’ll guide you on safeguarding yourself from a spectrum of real estate scams and fraudulent activities prevalent amongst property for sale in Dubai. From deceptive property listings to unscrupulous agents, we aim to empower you with the knowledge to secure your investment with property developers in Dubai.

Dubai Real Estate Scams: Identifying and Avoiding Common Pitfalls

Dubai’s real estate landscape is unfortunately marred by various scams that can leave investors in distress. Understanding these scams is crucial for protecting your financial interests.

Bait and Switch Tactics

Scammers employ the “bait and switch” technique, enticing potential buyers or renters with appealing but fictitious property details. Safeguard yourself by insisting on signing a contract for the specific property you’re interested in. Verify property details on the deposit receipt against which payment is made.

Dubai Rental Scams

Fraudsters demand advance payments for non-existent or already occupied rental properties, often posing as management companies. Exercise vigilance during rental agreements. Verify the authenticity of the company and ensure payments are issued to the property owner as per the title deed or power of attorney.

Off-Plan Property Fraud

Off-plan properties, though popular, also leave you susceptible to fraud. It can be through promises of units that may never materialise or just a general lack of legal approval. You can mitigate these risks by requesting an escrow account for payments instead of using the developer’s regular account. Alternatively, you can opt to invest in the best real estate developer in Dubai i.e. Shapoorji Properties directly. 

Unlicensed Real Estate Agents

Let’s not forget that engaging with unlicensed agents is just as good as walking towards the tsunami. Always verify the credentials and licences of real estate professionals to ensure credibility. You should also request the broker’s card which is issued by RERA (Real Estate Regulatory Agency) and verify their business address.

Dubai Title Fraud

Title fraud involves the manipulation of property titles which can potentially result in a financial loss for you. So, always authenticate property titles and deeds. Request and verify necessary documents for the property to ensure legitimacy.

Overseas Property Investment Scams

International appeal attracts scam artists exploiting foreign investors who are unfamiliar with local market nuances and regulations. Exercise caution and conduct thorough due diligence before engaging in any overseas property investments.

Risks of Buying Property in Dubai

The risks of buying property in Dubai include market volatility, legal complexities, and potential construction delays. Foreign buyers should be aware of varying property regulations and ensure thorough due diligence to avoid issues with developers or incomplete projects.

Dubai Property Auction Scams

While property auctions offer opportunities, they also present risks of fraudulent bidding or hidden property issues. Stay vigilant and verify the legitimacy of auctions to avoid falling prey to Dubai scams.

Double Selling Properties

Double selling involves fraudulent practices where the same property is sold to multiple buyers. Verify property ownership, check the broker’s RERA card, and conduct in-person property inspections before making any payments to mitigate this scam.

Fake Rental Contracts

Fraudsters forge lease agreements in fake rental contract scams, deceiving individuals into believing they’ve secured a rental property. Always authenticate your rental contracts and remain cautious during the leasing process.

Misrepresentation of Dubai Properties

Scammers may exaggerate property features or misrepresent conditions to lure investors. Conduct thorough property inspections and validate information to avoid falling victim to misrepresentation.

Phishing Scams in Dubai Real Estate

Online Dubai scams, like phishing, involve deceptive emails or messages tricking recipients into revealing sensitive information. Verify the credibility of senders and prefer secure payment methods like cheques.

Staying informed about these scams is the first step for safeguarding your investments in Dubai’s real estate market. Adopting a cautious approach and conducting due diligence are the next two. We hope that this guide was able to help protect you and your financial interests from fraudulent activities.


How can we avoid property scams in Dubai?

To avoid property scams in Dubai, conduct thorough research on the developer and project, verify legal documentation, consult with reputable real estate agents, and use escrow services for transactions. Be cautious of deals that seem too good to be true and seek professional advice if needed.

How do I know if a Dubai agent is legit?

You can ask them to show their RERA approved card. If they have one they are safe to conduct business with.

How do I protect myself from scams?

To prevent property scams in Dubai, research the developer and project, verify legal documents, consult reputable agents, use escrow services, be wary of too-good-to-be-true deals, and seek professional advice if necessary.

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