10 Biggest Red Flags When Choosing a Real Estate Company in Dubai
Dubai real estate market continues to thrive, with transactions surpassing AED 300 billion in 2023 and monthly sales crossing AED 30–35 billion by mid-2025 (DXBinteract). Investors from more than 190 countries are actively participating, but with opportunity comes risk. Choosing the wrong real estate company can cost you money, time, and peace of mind.
This guide outlines the 10 biggest red flags to look out for when selecting a real estate partner in Dubai, helping you distinguish reliable operators from risky ones.
1. Missing RERA Licensing
It is illegal to operate in Dubai without a RERA license. A legitimate company will display a valid license number, issue agent ID cards, and be registered with the Dubai Land Department (DLD). Always verify credentials using the Dubai REST app before engaging.
2. Escrow Account Evasion
By law, all off-plan payments must go into an escrow account. Avoid companies asking for cash or third-party transfers. Reputable firms will share escrow details and release schedules, ensuring your money is protected until project milestones are met.
3. Unrealistic Return Promises
Claims of 12–15% guaranteed rental yields are suspicious. Dubai’s average yields in H1 2025 were:
Always request supporting data from DLD or DXBinteract before investing.
4. Hidden or Vague Fees
Standard costs in Dubai include:
- 4% DLD registration + AED 580 admin
- AED 3,000 Oqood registration (off-plan)
- ~2% agency commission
- DEWA deposits: AED 2,000–4,000
- Community service charges
Ensure you receive a full written breakdown of all fees upfront.
5. High-Pressure Sales Tactics
Be cautious of “book today or lose forever” pitches. Reliable agents provide market comparisons, due diligence time, and fair analysis without forcing rushed decisions.
6. No Track Record
Companies without delivered projects, reviews, or case studies pose a risk. Visit completed developments to confirm credibility and speak directly with past clients if possible.
7. Weak Legal Knowledge
Agents should confidently explain Dubai property laws, including freehold vs leasehold rules, Golden Visa thresholds (AED 2M+), tenancy laws, and mortgage regulations. Poor legal knowledge is a red flag.
8. Vanishing Post-Sale Support
Trustworthy companies provide after-sales services like handover coordination, Ejari registration, and property management. Without this, investors risk costly delays and complications.
9. No Data in Decision-Making
Advice should always be data-driven. Verified sources include DLD reports, RERA rental indexes, and DXB Interact dashboards. If a company relies only on “gut feeling,” reconsider your engagement.
10. Over-Promoting Incentives
Incentives like furniture packages or waived fees shouldn’t overshadow fundamentals. Focus on location, rental demand, and long-term capital growth. For example, areas such as Al Furjan and Dubai Hills Estate continue to demonstrate strong fundamentals.
Investor Protection Checklist
- Verify RERA license and agent IDs
- Request a written fee breakdown
- Check escrow account details
- Confirm realistic returns with data
- Ask for references
- Ensure post-sales support
Why Dubai Remains Attractive
Despite risks, Dubai continues to be a global real estate magnet thanks to:
- No personal income tax
- Golden Visa eligibility for AED 2M+ property investors
- Population growth and international investor confidence
- Safe, regulated market structure
FAQs
Q: How do I verify a real estate company in Dubai?
A: Use the Dubai REST app to check RERA license and DLD registration.
Q: What are standard fees when buying property?
A: 4% DLD fee, ~2% agency commission, AED 3,000 Oqood (off-plan), DEWA deposits, and service charges.
Q: Can companies guarantee rental income?
A: No legitimate firm guarantees fixed yields. Average returns are 5–8% depending on location.
Final Word
Dubai offers immense potential for investors, but only when you work with the right partner. Be vigilant, verify every detail, and prioritize transparency and compliance. Whether investing in DAMAC, Binghatti, or Sobha Group projects, the right real estate partner will protect your investment and ensure long-term growth.
Ready to explore safe opportunities? Partner with Dubai’s most trusted real estate experts for transparent, data-driven guidance.
