Dubai’s real estate market recorded more than AED 300 billion in transactions in 2023, with investors from over 190 countries. By mid-2025, activity has only grown, with monthly sales consistently crossing AED 30–35 billion (DXBinteract). But with opportunity comes risk: working with the wrong real estate company can cost you money, time, and peace of mind.
This guide highlights the 10 biggest red flags investors and buyers should look out for, helping you separate legitimate operators from risky ones.
1. Missing RERA Licensing
Operating without a RERA (Real Estate Regulatory Agency) license is illegal. A professional company will:
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Display a valid RERA license number
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Provide agent ID cards for all brokers
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Be registered with the Dubai Land Department (DLD)
Action step: Verify all licenses using the Dubai REST app before engaging.
Dubai law requires all off-plan payments to go into a project’s escrow account. Red flags include requests for cash or third-party transfers.
Legitimate firms provide:
💡 Escrow accounts protect your payments until construction milestones are completed.
3. Unrealistic Return Promises
If a company guarantees rental yields of 12–15% or more, proceed with caution. Dubai’s average yields in H1 2025:
Always request supporting data from DLD transactions or DXBinteract.com.
4. Hidden or Vague Fees
Standard costs in Dubai include:
Demand a full written breakdown before signing.
5. High-Pressure Sales Tactics
Beware of companies pushing “book today or lose forever.” Reputable agents will provide:
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Property comparisons
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Market analysis
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Time for due diligence
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No rushed decisions
Remember: good properties don’t vanish overnight.
6. No Track Record
Companies without a portfolio, reviews, or case studies are risky. Established firms offer:
Tip: Visit delivered projects to confirm credibility.
7. Weak Legal Knowledge
Agents unable to explain Dubai property laws are a red flag. They should know:
8. Vanishing Post-Sale
The best companies offer after-sales services like:
Without support, investors often face costly delays.
9. No Data in Decision-Making
Good advice is data-driven. Credible sources include:
If advice is based only on “gut feeling,” walk away.
10. Over-Promoting Incentives
Discounts, furniture packages, or waived fees are common, but they shouldn’t distract from fundamentals:
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Location strength
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Rental demand
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Long-term capital growth
Always weigh incentives against core property value.
Investor Protection Checklist
Before committing:
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Verify RERA license & agent IDs
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Request written fee breakdown
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Check escrow account details
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Confirm realistic returns with data
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Ask for references
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Ensure post-sales support
Why Dubai Remains Attractive
When you choose the right partner, Dubai offers:
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Tax benefits: no income tax
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Golden Visa eligibility: AED 2M+ property investment
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Global hub status: population and tourism growth
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Strong fundamentals: safe and regulated market
FAQs
Q: How do I verify a real estate company in Dubai?
A: Use the Dubai REST app to check RERA license validity and DLD registration.
Q: What are normal fees when buying property in Dubai?
A: 4% DLD fee, ~2% agency commission, AED 3,000 Oqood (off-plan), DEWA deposits, and service charges.
Q: Can I get guaranteed rental income in Dubai?
A: No legitimate company guarantees returns. Average yields are 5–8% depending on the area.
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