Top Real Estate Scams in Dubai and How to Protect Your Investment
Dubai is one of the most attractive real estate markets globally, known for its transparency, innovation, and investor-friendly ecosystem. However, with rapid development and high transaction volumes, certain fraudulent activities still occur. Whether you’re a buyer, tenant, or investor, it’s critical to understand the most common scams in Dubai’s property market—and how to avoid them.
1. Blocked Unit Scam
Some buyers unknowingly pay deposits on units that are already under dispute, mortgage, or reservation.
How to stay safe: Verify the unit’s status directly through the Dubai Land Department (DLD) or ask your agent to confirm with the developer.
2. Fake Ownership
Scammers may present themselves as property owners without legal authority to sell.
Solution: Always request the original title deed and validate it using the Dubai REST app or by visiting a DLD Trustee Office.
3. Forged Power of Attorney (POA)
Fraudsters may use expired or fake POAs to impersonate the seller.
Solution: Accept only UAE-attested POAs and confirm validity through a DLD Trustee Center. For international POAs, ensure full legalization.
4. Unlicensed Brokers
Engaging with agents who are not RERA-certified increases the risk of fraud.
Solution: Always request the RERA card and cross-check on the DLD platform or Dubai REST app.
5. Off-Plan Project Fraud
Scams occur when buyers invest in developments not registered with DLD or lacking approved escrow accounts.
Solution: Only buy from developers registered with DLD, such as Deyaar, Prescott, or Samana. Ensure all payments go into a DLD-approved escrow account.
6. Rental Subletting Scam
A fraudster rents a unit using post-dated cheques, then sublets it to another tenant using a single cheque before disappearing.
Solution: As a tenant, request the title deed, landlord’s ID, and ensure the contract is registered via Ejari. Confirm the landlord’s authority to lease the property.
7. Urgency Traps & Unrealistic Offers
You’re pressured to act fast with offers like “50% ROI” or “last unit available.”
Solution: Never make a decision under pressure. Conduct full due diligence and compare market prices in areas such as Arjan, Dubai Creek Harbor, or Jumeirah.
8. Cash Payments & Cheques in the Agent’s Name
Paying in cash or writing cheques under the agent’s name leaves you legally unprotected.
Solution: Always pay directly to the developer, seller, or escrow account. Never hand over cash. If needed, demand a stamped official receipt from the company, not just the agent.
Final Tips to Safeguard Your Investment
Dubai’s real estate market is well-regulated through entities like RERA, DLD, and Trustee Offices. Leverage these systems to ensure your transaction is secure. Always verify:
- Property title deed and ownership
- Agent’s RERA license
- Power of Attorney documents
- Project registration status for off-plan units
- Escrow account approval for payments
Dubai’s investment appeal continues to grow, especially in emerging hubs like Al Furjan, The Valley, and Dubai Studio City. By working only with registered agents and developers, and using DLD-verified tools, you can invest with confidence.
To explore safe, verified real estate opportunities, visit Aurantius Real Estate.
