Safety First: How to Protect Yourself from Real Estate Scams in Dubai

6:15 pm  |  26.07.2023

The possibilities of fraudsters have grown through technical progress. As a result, in many parts of Dubai, investors and landlordes are victims of real estate fraud. In this situation, it is always advisable to exercise caution and only turn to reputable companies.

Every year, Dubai attracts a large number of investors from all over the world. Many people consider this city a safe place to do business, from entrepreneurs to real estate investors. In addition, the real estate market in Dubai has grown steadily over the years. This has made Dubai a paradise for fraudsters, especially in the real estate sector.

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It’s more important than ever to spot Dubai real estate scammers and avoid falling for their tricks. Below you will learn how to protect yourself from people trying to extort money from you using illegal and immoral methods.

Pay Attention to the RERA Registration

RERA building

The Real Estate Regulatory Authority (RERA) of the Dubai Land Department regulates the business in Dubai. RERA stipulates that all real estate agents and property developers must be registered. On the official website of RERA you can check if the company is registered. 

Remember: if your real estate agent is not listed on the website, you should not conduct any transactions with him. Fraudsters can even use fake IDs.

Estimate of the Value

If an offer seems too good to be true, it probably is. Scammers often use exaggerated promises to lure investors and homeowners. Therefore, it is always a good idea to seek the advice of a reputable real estate agent licensed by RERA. He can estimate the value of your house. If you want to buy, find out about the market and the average price for the type of house you want in the area.

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Property Size

When buying a villa specify the size of the entire site or only the part that is occupied by the building. It matters because the amount of utility charges depends on the area.

In announcements about the sale of apartments real estate agent can additional info to the living space not only the area of balconies and terraces, but also the area of the common corridor. As a result, the declared size of the apartments is twice as much as the actual.

Official Contract

Best advice: read before sign

Another way to avoid a property scam is to make sure your contact is legal. You should register your rental contract with the Ejari of the Dubai Land Department when renting a property. If you want to buy a house, make sure that there is a legally binding contract between you and the real estate agent for the services provided by the company. In some cases, a formal contract may also be required between you and the developer.

Check Payments

Many real estate scammers have one thing in common: they work exclusively with cash. The scammers avoid leaving any traces that can be traced back to them. Therefore, most of them require payment in cash. It does not matter if you require all transactions to be paid by check or bank transfer. Also make sure that any advance payments you make are always documented and accepted by the agent.

Property Search

If you are looking for a house on your own, you should only use reputable platforms for real estate offers. To avoid house rental scams and fake listings, they conduct regular reviews of their listings. Therefore, an initial filtering can be made on the portal itself, but be sure to check the ads for abnormalities. Always assume that scammers are cunning, this way you can learn to outsmart them.

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Having a reliable real estate agent by your side is an excellent way to make sure you don’t fall victim to a property scam in Dubai. An agent licensed by RERA with a good reputation and expertise in the industry will undoubtedly guide you on the right path.

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